How did BAM's core earnings perform in the third quarter of 2025?

Fee-related earnings were a record $754 million ($0.46 per share), up 17% from $644 million a year earlier. Distributable earnings were $661 million ($0.41 per share), up 7% from $619 million. Net income attributable to BAM was $724 million, up 33%. Q3 FRE margin was 58%.

What is the Oaktree transaction and how is it expected to affect BAM?

BAM and Brookfield Corporation agreed to acquire the roughly 26% of Oaktree that BAM does not already own, for about $3.0 billion total. BAM will fund about $1.6 billion and BN about $1.4 billion. BAM will acquire Oaktree's fee-related earnings, its share of carried interest (net of BN's 33% royalty), and partner manager interests in 17Capital and DoubleLine. The company describes the deal as non-dilutive to shareholders and immediately accretive to FRE. Closing is expected in the first half of 2026 and is subject to customary conditions, including regulatory approvals.

Why did net income grow faster than fee-related earnings?

The release does not give a full bridge. Net income rose 33% in Q3 while FRE rose 17%, which suggests contributions from carried interest, equity-method income, and other items outside FRE. Carried interest income net of amounts attributable to BN was $241 million in Q3, versus $104 million a year earlier, and share of income from equity method investments was $110 million, versus $61 million. Net income is more volatile than FRE because it includes these items, so investors may want to focus on FRE and DE for recurring earnings.

Are these results audited, and what should investors keep in mind about the non-GAAP measures?

The financial information is unaudited. It was extracted from quarterly financial statements prepared under U.S. GAAP, and the amounts have not been audited by BAM's external auditor. FRE and DE are non-GAAP measures that the company uses to assess operating performance. They are not standardized and may not be comparable with similar measures from other companies. The filing includes reconciliations from net income to FRE and DE, and FRE and DE should not be treated as substitutes for GAAP results.

BAM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Brookfield Asset Management (BAM) reported record third-quarter 2025 results, led by a record $30 billion^a of fundraising and a record $23 billion of capital deployment.

Fee-related earnings (FRE) rose 17% year over year to a record $754 million^b, or $0.46 per share, with a quarterly FRE margin of 58%. Distributable earnings (DE) were $661 million, or $0.41 per share, up 7%. Net income attributable to BAM was $724 million, up 33%.

Over the trailing twelve months, FRE grew 19% to $2.8 billion^c ($1.72 per share), DE grew 12% to $2.6 billion ($1.58 per share), and net income attributable to BAM grew 41% to $2.6 billion. Fee-bearing capital reached $581 billion, up 8%. The company also reported $15 billion of equity value monetized from $25 billion of asset sales.

The quarter's most significant strategic development is the agreement to acquire the roughly 26% of Oaktree that BAM does not already own, for approximately $3.0 billion^d total, with BAM funding about $1.6 billion. The deal is described as non-dilutive and immediately accretive to FRE, with closing expected in the first half of 2026. Other items include the completed majority acquisition of Angel Oak, a U.S. mortgage credit manager with $11 billion of fee-bearing capital, and BAM's expected role as investment manager for a portion of the roughly $36 billion of assets that Brookfield Wealth Solutions is acquiring with Just Group.

BAM reported $125 billion of uncalled fund commitments, of which $55 billion do not yet earn fees, and a quarterly dividend of $0.4375 per share. Investors should note that the financial information in this release is unaudited and derived from quarterly financials prepared under U.S. GAAP. FRE and DE are non-GAAP measures, and the company's own definitions and reconciliations are included in the filing.

Corporate liquidity was $2.6 billion at quarter-end, and the company issued $750 million of 30-year senior notes at a 6.077% coupon in September. Several growth drivers depend on upcoming fund launches and closings, including the seventh private equity flagship, the sixth infrastructure flagship (expected early 2026), and the first close of the AI Infrastructure fund (expected before year-end 2025), so their timing and size will be important to watch.

02—Key points

Key Highlights

Record Q3 2025 fundraising of $30 billion and over $100 billion raised over the trailing twelve months, with nearly 80% from complementary strategies.
FRE of $754 million ($0.46/share) in Q3, up 17% year over year; trailing-twelve-month FRE of $2.8 billion ($1.72/share), up 19%, with a 58% quarterly margin.
Net income attributable to BAM of $724 million in Q3, up 33%, and $2.6 billion over the trailing twelve months, up 41%.
Record $23 billion of deployments and $15 billion of monetized equity value ($25 billion of gross asset sales) in the quarter.
Agreement to acquire the ~26% of Oaktree BAM does not own for ~$3.0 billion total (BAM share ~$1.6 billion), expected to close in 1H 2026 and described as non-dilutive and FRE-accretive.
Fee-bearing capital of $581 billion, up 8%, with $125 billion of uncalled fund commitments ($55 billion not yet fee-earning, expected to yield ~$550 million annually once deployed).
Quarterly dividend of $0.4375 per share, payable December 31, 2025, to holders of record on November 28, 2025.

03—Questions

Frequently Asked Questions

How did BAM's core earnings perform in the third quarter of 2025?
Fee-related earnings were a record $754 million ($0.46 per share), up 17% from $644 million a year earlier. Distributable earnings were $661 million ($0.41 per share), up 7% from $619 million. Net income attributable to BAM was $724 million, up 33%. Q3 FRE margin was 58%.
What is the Oaktree transaction and how is it expected to affect BAM?
BAM and Brookfield Corporation agreed to acquire the roughly 26% of Oaktree that BAM does not already own, for about $3.0 billion total. BAM will fund about $1.6 billion and BN about $1.4 billion. BAM will acquire Oaktree's fee-related earnings, its share of carried interest (net of BN's 33% royalty), and partner manager interests in 17Capital and DoubleLine. The company describes the deal as non-dilutive to shareholders and immediately accretive to FRE. Closing is expected in the first half of 2026 and is subject to customary conditions, including regulatory approvals.
Why did net income grow faster than fee-related earnings?
The release does not give a full bridge. Net income rose 33% in Q3 while FRE rose 17%, which suggests contributions from carried interest, equity-method income, and other items outside FRE. Carried interest income net of amounts attributable to BN was $241 million in Q3, versus $104 million a year earlier, and share of income from equity method investments was $110 million, versus $61 million. Net income is more volatile than FRE because it includes these items, so investors may want to focus on FRE and DE for recurring earnings.
Are these results audited, and what should investors keep in mind about the non-GAAP measures?
The financial information is unaudited. It was extracted from quarterly financial statements prepared under U.S. GAAP, and the amounts have not been audited by BAM's external auditor. FRE and DE are non-GAAP measures that the company uses to assess operating performance. They are not standardized and may not be comparable with similar measures from other companies. The filing includes reconciliations from net income to FRE and DE, and FRE and DE should not be treated as substitutes for GAAP results.

04—Continue

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