Fee-Related Earnings up 14% Year-Over-Year to $644 Million
$135 Billion of Capital Raised Over LTM, Growing Fee-Bearing Capital 23% to $539 Billion
Brookfield Takes Initial Steps to Enhance Shareholder Ownership and Index Inclusion
NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) today announced financial results for the quarter ended September 30, 2024.
Connor Teskey, President of Brookfield Asset Management, stated, "We delivered record results in the third quarter, driven by the substantial increase in fee-bearing capital due to strong fundraising, deployment and additional strategic partnerships over the past year. This resulted in 14% year-over-year growth in fee-related earnings, while fee-bearing capital increased by 23% to $539 billion.”
He continued, "This past quarter, we continued to extend our leadership position in our key strategic sectors of energy transition, AI infrastructure, and private credit. We are well positioned to continue delivering strong earnings, bolstered by market tailwinds that should accelerate both our capital raising and deployment activities for years to come.”
Operating Results
Brookfield Asset Management Ltd.
Net income for Brookfield Asset Management Ltd. (BAM), the publicly traded entity, totaled $129 million for the quarter (2023 - $122 million). BAM owns an approximate 27% interest in our asset management business with the other approximate 73% owned by Brookfield Corporation. In order to provide meaningful comparative information, the discussion that follows relates to the financial results on a 100% basis for our asset management business (Brookfield Asset Management).
Brookfield Asset Management1
| For the periods ended September 30 | Three Months Ended | Twelve Months Ended | ||||||||||
| (US$ millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Fee-Related Earnings2 | $ | 644 | $ | 565 | $ | 2,360 | $ | 2,236 | ||||
| Add back: equity-based compensation costs and other3 | 59 | 49 | 198 | 177 | ||||||||
| Less: cash taxes | (84 | ) | (46 | ) | (258 | ) | (186 | ) | ||||
| Distributable Earnings2 | $ | 619 | $ | 568 | $ | 2,300 | $ | 2,227 | ||||
| Fee-related earnings per share | $ | 0.39 | $ | 0.35 | $ | 1.45 | $ | 1.37 | ||||
| Distributable earnings per share | $ | 0.38 | $ | 0.35 | $ | 1.41 | $ | 1.36 | ||||
Net income attributable to Brookfield Asset Management |
$ |
544 | $ | 494 |
$ | 1,854 | $ | 1,969 | ||||
|
See endnotes | ||||||||||||
Financial Results
Fee-bearing capital (FBC) reached $539 billion at the end of the third quarter, up nearly $100 billion or 23% over the past year and up over $25 billion or 5% from the prior quarter.
This growth has come from $101 billion in fundraising and $25 billion of capital deployment over the last twelve months. In the quarter, FBC has also benefitted from the increase in our listed affiliate share prices and execution of a number of strategic initiatives with leading partner managers, such as Castlelake and SVB Capital.
On the back of this growth in fee-bearing capital, fee-related earnings were a record $644 million ($0.39 / share) for the quarter and $2.4 billion ($1.45 / share) over the last twelve months, up 14% and 6% over the same periods in the prior year, respectively.
Distributable earnings were $619 million ($0.38 / share) for the quarter and $2.3 billion ($1.41 / share) over the last twelve months, up 9% and 3% over the same periods in the prior year, respectively.
Fundraising
We raised $21 billion in the third quarter of 2024. Notable fundraising updates during the quarter include:
- Within credit, we raised approximately $14 billion of capital. This included $6.4 billion raised across Oaktree credit funds and strategies, $4.5 billion from Brookfield Wealth Solutions and $1.0 billion in a separately managed account (SMA) from a U.S. life insurance company. We expect that third-party insurance capital will be a meaningful contributor to our growth going forward.
- Within renewable power, we raised $2.2 billion of capital, including $1.4 billion for our Catalytic Transition Fund.
- Within infrastructure, we raised a total of $1.4 billion, including over $500 million within our supercore infrastructure strategy, surpassing the capital raised for this strategy last quarter and making it our strongest quarter for fundraising in over two years. We also raised nearly $800 million within our private wealth infrastructure fund.
- Within private equity, we raised $2.0 billion of capital in the quarter. We also announced strategic commitments from two of our Saudi Arabian clients for our Middle East Partners fund in October.
- Within real estate, we raised $1.6 billion of capital during the quarter.
Investment activity has continued to increase. In the third quarter, we deployed or committed to approximately $20 billion of capital into investments across a number of high-quality businesses and assets. We also monetized or agreed to sell over $17 billion of investments in recent months.
Recent notable deployments and commitments include:
- We completed the acquisition of Network International for $2.0 billion of equity capital, a deal announced previously last year. Post-acquisition, we intend to combine Network with Magnati, our UAE payment processing business, to create a leading payments platform in the Middle East that will benefit from secular tailwinds and significantly expand our presence in the region.
- We acquired a portfolio of 76,000 telecom sites in India from American Tower Corp for $800 million of equity capital ($2.2 billion of enterprise value).
- Subsequent to the end of the quarter, we announced a new partnership agreement with Ørsted to acquire a $2.3 billion stake in a premium portfolio of 3.5 GW of contracted operating offshore wind assets in the United Kingdom with strong operating history.
- Subsequent to the end of the quarter, we made an offer to acquire Tritax EuroBox, a publicly-traded European logistics REIT, for approximately $730 million.
- Within real estate, we sold a total of $5.4 billion of assets in the past few months, including the sale of our UK Retail Parks Portfolio, a US Manufactured Home portfolio and the sale of the Conrad hotel in Seoul, Korea.
- Within renewable power, we announced a total of $3.2 billion of asset sales in recent months. The largest of these transactions include Saeta Yield, a leading independent developer, owner and operator of renewable power assets in Spain and Portugal; our stake in First Hydro, a critical electricity generation and storage facility in the United Kingdom; and a 50% stake in our Shepherds Flat onshore wind portfolio in Oregon.
- Within infrastructure, we announced a total of $2.6 billion of asset sales in recent months. This includes separate agreements to sell two Mexican regulated natural gas transmission pipelines.
As of September 30, 2024, we had a total of $106 billion of uncalled fund commitments.
- Uncalled fund commitments include $50 billion which is not currently earning fees, but will earn approximately $500 million of fees annually once deployed.
- This includes a five-year, unsecured, $750 million revolving facility, raised in August, further enhancing our liquidity.
We announced or completed several strategic transactions during the quarter:
- We closed on a 51% interest in and strategic partnership with Castlelake, a global alternative investment manager specializing in asset-based private credit including aviation and specialty finance.
- We completed the acquisition of SVB Capital through Pinegrove Venture Partners, our venture investment platform formed with Sequoia Heritage.
The board of directors of Brookfield Asset Management Ltd. declared a quarterly dividend of $0.38 per share, payable on December 31, 2024, to shareholders of record as of the close of business on November 29, 2024.
End Notes
- Reflects full period results unless otherwise noted on a 100% basis for Brookfield Asset Management, being Brookfield Asset Management ULC and its subsidiaries, including its share of the asset management activities of partly owned subsidiaries.
- See Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings on page 6 and Non-GAAP and Performance Measures section on page 8.
- Equity-based compensation costs and other income includes Brookfield Asset Management's portion of partly owned subsidiaries investment income, realized carried interest, and other items.
| Brookfield Asset Management Ltd. Statement of Financial Position | ||||||
| Unaudited As at (US$ millions) | September 30, 2024 | December 31, 2023 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 16 | $ | 9 | ||
| Investment in Brookfield Asset Management | 3,309 | 2,270 | ||||
| Due from affiliates | 923 | 886 | ||||
| Other assets | 76 | 40 | ||||
| Total Assets | $ | 4,324 | $ | 3,205 | ||
| Liabilities | ||||||
| Accounts payable and other | $ | 858 | $ | 859 | ||
| Due to affiliates | 218 | 261 | ||||
| Total Liabilities | 1,076 | 1,120 | ||||
| Equity | ||||||
| Total Equity | 3,248 | 2,085 | ||||
| Total Liabilities and Equity | $ | 4,324 | $ | 3,205 | ||
| Brookfield Asset Management Ltd. Statement of Operating Results | ||||||
| Unaudited | ||||||
| For the periods ended September 30 | Three Months Ended | |||||
| (US$ millions, except per share amounts) | 2024 | 2023 | ||||
| Equity accounted income | $ | 138 | $ | 123 | ||
| Compensation and other expenses | (9 | ) | (1 | ) | ||
| Net Income | $ | 129 | $ | 122 | ||
Net income per share of common stock | ||||||
| Diluted | $ | 0.30 | $ | 0.31 | ||
| Basic | $ | 0.31 | $ | 0.31 | ||
| Brookfield Asset Management Statement of Financial Position | ||||||
| Unaudited As at (US$ millions) | September 30, 2024 | December 31, 2023 | ||||
| Assets | ||||||
| Cash and cash equivalents | $ | 903 | $ | 2,667 | ||
| Accounts receivable and other | 614 | 588 | ||||
| Investments | 9,354 | 7,522 | ||||
| Due from affiliates | 2,378 | 2,504 | ||||
| Deferred income tax assets and other assets | 1,005 | 1,009 | ||||
| Total Assets | $ | 14,254 | $ | 14,290 | ||
| Liabilities | ||||||
| Accounts payable and other | $ | 1,667 | $ | 1,799 | ||
| Due to affiliates | 1,386 | 986 | ||||
| Deferred income tax liabilities and other | 2,200 | 2,206 | ||||
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