Brookfield Asset Management Ltd. Q4 FY2025 earnings call

Bruce Flatt highlighted 2025 was a strong year with $112 billion raised, $66 billion invested, $50 billion monetized, fee-bearing capital up 12%, fee-related earnings record $3B. Connor Teskey discussed 2025 investment activity across businesses like renewable power, private equity, infrastructure, real estate. Fundraising in 2025 was excellent with major flagship funds closed, non-flagship strategies contributing nearly 90% of fundraising. Credit platform scaling with organic growth and acquisitions. 2026 expected to be strong with fundraising momentum, deployment platform scaled, drivers in private equity, infrastructure, credit. Hadley Peer Marshall discussed fourth-quarter financial results, strong fundraising, balance sheet strength, and dividend increase.

Fee-bearing capital increased 12% over the year to more than $600 billion. Fee-related earnings reached a record $3 billion, up 22% year over year. Distributable earnings were $2.7 billion, an increase of 14% from the prior year. In the fourth quarter, fee-related earnings were up 28% from the prior year period to $867 million or $0.53 per share, bringing FRE for the year to $3 billion. Distributable earnings were $767 million or $0.47 per share in the quarter, up 18% from the prior year period. Fundraising in the fourth quarter was the strongest ever with $35 billion raised across over 50 strategies. Infrastructure raised $7 billion, private equity $1.6 billion, credit $23 billion.

2026 expected to be at or above long-term targets. Expect growth rates in mid to high teens. Three initiatives (acquisition of remainder of Oaktree, closing of Just Group, Q4 acquisitions) to add $200 million to FRE growth. 2026 to have fundraising across nearly sixty strategies. Dividend increased by 15% to $0.5025 per share quarterly.

Q: Cherilyn Radbourne asked about secondaries being a strategically important area.

A: Connor Teskey said they track secondaries closely, it's growing rapidly, and would be opportunistic.

Q: Alexander Blostein asked about 2026 growth and FRE.

A: Connor Teskey said 2026 expected to be strong, exceeding long-term targets with initiatives adding to FRE.

Q: Michael Brown asked about AI-related disruption.

A: Connor Teskey said Brookfield is a net positive, credit business has little software exposure.

Q: Bart Dziarski asked about liquidity.

A: Hadley Peer Marshall said balance sheet is strong, well-capitalized, $130 billion uncalled commitments.

Q: Craig Siegenthaler asked about AI capital deployment, mix, leases.

A: Connor Teskey discussed AI infrastructure, mix of capital, long-term leases.

Q: Michael Cyprys asked about AI and data centers impacting bottlenecks.

A: Connor Teskey discussed using unique power capabilities.

Q: Dean Wilkinson asked about credit portfolio and redemptions.

A: Connor Teskey said strong demand in real asset and asset-backed lending, modest retail redemptions.

Q: Daniel Fannon asked about wealth flows.

A: Connor Teskey said wealth flow growth to continue, new products launched.

Q: Crispin Elliot Love asked about FRE margins.

A: Hadley Peer Marshall discussed margin trajectory and transparency changes.

Q: Mario Saric asked about balancing brand awareness and institutional culture.

A: Connor Teskey said culture won't change, brand awareness reinforces values.

Q: Jaeme Gloyn asked about private wealth and 401(k)s.

A: Connor Teskey said opportunity to grow incrementally, working with target date fund managers.

Q: Kenneth Worthington asked about co-investment revenue jumps.

A: Hadley Peer Marshall said Pine Grove and partner revenues drove jumps.

Q: Sohrab Movahedi asked about dividend bump.

A: Hadley Peer Marshall said thorough analysis led to 15% increase, targeting 95% payout ratio