What drove the growth in fee-related earnings?

FRE growth came from a 23% increase in fee-bearing capital to $539 billion, driven by strong fundraising, capital deployment, and strategic partnerships such as Castlelake and SVB Capital. Higher listed affiliate share prices also contributed to FBC in the quarter.

How much of BAM's reported income is attributable to the company itself?

BAM reported net income of $129 million for the quarter, reflecting its approximate 27% interest in the asset management business. Brookfield Corporation owns the remaining approximate 73%, so the asset management results on a 100% basis are presented for comparability.

What is the outlook for future fundraising?

Management pointed to strong market tailwinds in energy transition, AI infrastructure, and private credit, and said that third-party insurance capital is expected to be a meaningful contributor to growth. The filing does not provide quantitative fundraising targets.

Is the dividend covered by earnings?

The $0.38 quarterly dividend roughly matches Q3 distributable earnings of $0.38 per share. Distributable earnings are a non-GAAP measure, and management noted that the variability of earnings growth may affect the dividend and share price.

Are these results audited?

No. The financial information in the release is unaudited and was extracted from financial statements prepared under U.S. GAAP. BAM's board reviewed and approved the document before release, and the company notes that FRE and DE are non-GAAP measures that are not standardized.

BAM 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 6-K filed November 4, 2024. Cited figures are marked; the original filing is the authoritative source.

Brookfield Asset Management (BAM) reported record third-quarter 2024 results, with fee-related earnings (FRE) of $644 million^a ($0.39 per share), up 14% year over year, and distributable earnings (DE) of $619 million ($0.38 per share), up 9%.

Fee-bearing capital (FBC) reached $539 billion^b, up 23% over the past year and up 5% sequentially, driven by $101 billion of fundraising and $25 billion of deployment over the last twelve months. Q3 fundraising totaled $21 billion, led by credit at roughly $14 billion, including $6.4 billion across Oaktree funds and $4.5 billion from Brookfield Wealth Solutions. Management highlighted the growing role of third-party insurance capital in future growth.

The quarter also featured significant capital deployment (about $20 billion^c committed) and monetizations (over $17 billion of sales agreements), including the $2.0 billion Network International acquisition, a 76,000-site Indian telecom tower portfolio, and a $2.3 billion Ørsted offshore wind stake agreed after quarter-end. Strategic moves included a 51% interest in Castlelake and the completion of the SVB Capital acquisition via Pinegrove Venture Partners. Investors should note that a portion of FBC growth reflected higher listed affiliate share prices, and that $50 billion of uncalled commitments do not yet earn fees.

The filing also disclosed the company's 'initial steps to enhance shareholder ownership and index inclusion' in the headline, and declared a quarterly dividend of $0.38^d per share payable December 31, 2024. BAM's own net income was $129 million, as the company holds an approximate 27% economic interest in the asset management business, which Brookfield Corporation owns the remaining 73% of.

Corporate liquidity was $2.1 billion at quarter end. The results are unaudited, and the release includes standard forward-looking statement and non-GAAP disclosure caveats.

02—Key points

Key Highlights

Fee-related earnings reached a record $644 million ($0.39/share) for Q3 2024, up 14% year over year; LTM FRE of $2.36 billion rose 6%.
Fee-bearing capital grew 23% year over year to $539 billion, and 5% sequentially, supported by $101 billion of LTM fundraising and $25 billion of deployment.
Q3 fundraising of $21 billion was led by credit (~$14 billion), including $6.4 billion across Oaktree funds and $4.5 billion from Brookfield Wealth Solutions.
Distributable earnings of $619 million ($0.38/share) rose 9% year over year; LTM DE of $2.3 billion rose 3%.
Approximately $20 billion was deployed or committed in Q3, and over $17 billion of investments were monetized or agreed to be sold in recent months.
Quarterly dividend of $0.38 per share declared, payable December 31, 2024, to holders of record on November 29, 2024.
Uncalled fund commitments totaled $106 billion, of which $50 billion is not yet fee-earning and is expected to generate roughly $500 million of annual fees once deployed.

03—Questions

Frequently Asked Questions

What drove the growth in fee-related earnings?
FRE growth came from a 23% increase in fee-bearing capital to $539 billion, driven by strong fundraising, capital deployment, and strategic partnerships such as Castlelake and SVB Capital. Higher listed affiliate share prices also contributed to FBC in the quarter.
How much of BAM's reported income is attributable to the company itself?
BAM reported net income of $129 million for the quarter, reflecting its approximate 27% interest in the asset management business. Brookfield Corporation owns the remaining approximate 73%, so the asset management results on a 100% basis are presented for comparability.
What is the outlook for future fundraising?
Management pointed to strong market tailwinds in energy transition, AI infrastructure, and private credit, and said that third-party insurance capital is expected to be a meaningful contributor to growth. The filing does not provide quantitative fundraising targets.
Is the dividend covered by earnings?
The $0.38 quarterly dividend roughly matches Q3 distributable earnings of $0.38 per share. Distributable earnings are a non-GAAP measure, and management noted that the variability of earnings growth may affect the dividend and share price.
Are these results audited?
No. The financial information in the release is unaudited and was extracted from financial statements prepared under U.S. GAAP. BAM's board reviewed and approved the document before release, and the company notes that FRE and DE are non-GAAP measures that are not standardized.

04—Continue

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