01—Abstract
Summary
Summary of the 10-K filed March 17, 2025. Cited figures are marked; the original filing is the authoritative source.
Brookfield Asset Management Ltd. (BAM) reported strong financial performance for the fiscal year ending December 31, 2024.
The company's asset management business saw significant growth in Fee-Bearing Capital, reaching $539 billiona, driven by robust fundraising efforts across various strategies and a notable $49 billion inflow from the AEL Mandate. Fee Revenues increased by 7% to $4.7 billion, and Fee-Related Earnings grew by 10% to $2.5 billion, contributing to a 5% increase in Distributable Earnings to $2.4 billion. The company declared a quarterly dividend of $0.4375 per share, reflecting a 15% year-over-year increase, underscoring its commitment to returning capital to shareholders.
A significant corporate development was the completion of a restructuring on February 4, 2025, whereby BAM consolidated 100%b ownership of its asset management business, simplifying its structure and positioning it for potential inclusion in major stock indices. Despite market volatility and interest rate fluctuations, BAM's diversified strategies and strong operational expertise continue to drive consistent performance.
02—Key points
Key Highlights
- Fee-Bearing Capital increased by 18% to $539 billion, driven by strong fundraising and the AEL Mandate, with 87% being long-dated or perpetual.
- Fee Revenues grew 7% to $4.7 billion, and Fee-Related Earnings increased 10% to $2.5 billion, indicating healthy recurring revenue streams.
- Distributable Earnings (DE) increased 5% to $2.4 billion, supporting a 15% year-over-year increase in the quarterly dividend to $0.4375 per share.
- Brookfield Asset Management Ltd. (BAM) completed a restructuring on February 4, 2025, consolidating 100% ownership of its asset management business under BAM.
- The company deployed $47.6 billion across its business groups, with significant activity in Credit ($26.2 billion), Real Estate ($6.1 billion), and Private Equity ($5.9 billion).
- Total Assets for BAM increased by 37% to $4.4 billion, primarily due to the increase in its investment in the Asset Management Company following the restructuring.
- Oaktree Asset Management Operating Group reported net income of $488.5 million, with management fees of $1.17 billion and incentive fees/carried interest of $393.5 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 17, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $3.98B$4.06B | −2.0% |
| Operating Expenses | $1.68B$402.00M | +317.9% |
| Net Income | $2.11B$2.14B | −1.4% |
05—Questions
Frequently Asked Questions
What were the key drivers of BAM's revenue growth in 2024?
BAM's revenue growth was primarily driven by an increase in base management and advisory fees, up 7% to $3.0 billion. This was largely attributable to the AEL Mandate resulting in $49 billion of Fee-Bearing Capital inflows, capital raised for flagship funds, capital deployed across complementary strategies, and a higher trading price of BBU. Incentive fees also saw an increase of 13% to $424 million due to growth in BIP and BEP's dividends.
How did the corporate restructuring on February 4, 2025, impact BAM's financial reporting and structure?
The restructuring consolidated 100% ownership of the asset management business under BAM, simplifying its structure. This arrangement is accounted for as a reverse asset acquisition, with BAM ULC being the accounting acquirer. The restructuring is expected to broaden BAM's shareholder base and align its size and structure with peers, potentially positioning it for inclusion in major stock indices.
What is BAM's dividend policy, and how does it relate to its financial performance?
BAM intends to pay out approximately 90% of its Distributable Earnings to shareholders quarterly, reinvesting the balance back into the business. The dividend is variable and changes in line with the growth of Distributable Earnings. In February 2025, BAM declared a quarterly dividend of $0.4375 per share, representing a 15% increase from the prior year, reflecting the company's strong financial performance and commitment to shareholder returns.
How is Oaktree Asset Management's performance reflected in BAM's financials?
Oaktree Asset Management is accounted for as an equity method investment by BAM, and its financial results are included in BAM's consolidated financials. For the year ended December 31, 2024, BAM's share of net income from Oaktree was $570 million, an increase from $470 million in the prior year. Oaktree Asset Management Operating Group itself reported net income of $488.5 million, with management fees of $1.17 billion and incentive fees and carried interest allocations of $393.5 million.
06—Continue