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    BAM
    Earnings call· Jun 2025(Q2 FY25)

    Brookfield Asset Management Q2 FY25 earnings call BAM

    Aug 6, 2025 Source

    Executive summary

    Brookfield Asset Management Q2 FY25 — Strong Earnings Growth and Accelerating Investment Activity

    Brookfield Asset Management delivered strong Q2 FY25 results, driven by robust fundraising and accelerating investment activity across its global platform. The company is strategically positioned to capitalize on megatrends like digitalization, decarbonization, and deglobalization, particularly in AI infrastructure. Management highlighted significant capital deployment and monetization, alongside expanding partnerships and a growing focus on individual investor channels.

    Highlights

    5

    • Fee-related earnings (FRE) increased 16% to $676 million.

    • Distributable earnings (DE) increased 12% to $613 million, or $0.38 per share.

    • Raised $22 billion of capital in the quarter, bringing 12-month fundraising to $97 billion.

    • Fee-bearing capital grew 10% year-over-year to $563 billion.

    • Deployed over $85 billion of capital year-to-date, including $50 billion of equity value.

    Concerns

    2

    • Earnings partially offset by higher interest expense paid on a $750 million bond deal and lower interest income due to cash deployment.

    • Increased competition and tighter credit spreads in the U.S. retail channel for insurance products.

    Guidance & targets

    7
    CategoryTargetConfidence
    Brookfield Wealth Capital Raised
    $30 billion
    medium materiality
    High
    Global Transition Fund II Capital Raised
    significantly more capital
    medium materiality
    High
    Flagship Private Equity Fund Launch
    launch this year
    high materiality
    High
    Flagship Infrastructure Fund Launch
    late this year or early part of next year
    high materiality
    Medium
    Brookfield Oaktree Wealth Solutions Capital Raised
    $10 billion
    medium materiality
    High
    Total Fundraising
    bigger than last year
    high materiality
    High
    Just Group Asset Shift Regulatory Approval
    some point in 2026
    medium materiality
    Medium

    Operational metrics

    35
    Fee-related earnings (FRE)
    $676 millionup 16% YoY
    Q2 FY25
    Distributable earnings (DE)
    $613 millionup 12% YoY
    Q2 FY25
    Fee-bearing capital
    $563 billionup 10% YoY
    Q2 FY25
    Fundraising
    $22 billion
    Q2 FY25

    Total capital raised in the quarter.

    Fundraising
    $97 billion
    LTM Q2 FY25

    Total capital raised over the past 12 months.

    Capital deployed
    $85 billion
    YTD Q2 FY25

    Total capital deployed into investments year-to-date.

    Asset sales
    $55 billion
    YTD Q2 FY25

    Total value of asset sales year-to-date.

    FRE margin
    56%up 1% YoY
    Q2 FY25
    Global Transition Fund II capital raised
    $15 billion
    Q2 FY25

    Total capital raised for the second vintage of the global transition flagship fund.

    Infrastructure fundraising
    $1.7 billion
    Q2 FY25

    Total infrastructure fundraising in the quarter.

    Private Equity fundraising
    $1.3 billion
    Q2 FY25

    Total private equity fundraising in the quarter.

    Real Estate fundraising
    $1.8 billion
    Q2 FY25

    Total real estate fundraising in the quarter.

    Credit strategies fundraising
    $16 billion
    Q2 FY25

    Total credit strategies fundraising in the quarter.

    Infrastructure mezzanine debt strategy fundraising
    $4 billion
    Q2 FY25

    Total capital raised for the fourth vintage of the infrastructure mezzanine debt strategy.

    Fee-bearing credit capital managed
    $250 billion
    Q2 FY25

    Managed by one of the largest private credit franchises globally.

    Credit capital deployed/committed
    $10 billion
    Q2 FY25

    Deployed and committed during the quarter.

    Credit capital deployed/committed
    $30 billion
    LTM Q2 FY25

    Deployed and committed over the past year.

    Investment in partner managers
    $350 million
    Q2 FY25

    Invested towards buying and growing partner managers.

    Primary Wave stake
    44%
    Q2 FY25

    Increased stake by an additional 9%.

    Liquidity
    $1.5 billion
    Q2 FY25

    At quarter end.

    Bond deal issued
    $750 million
    Q2 FY25

    Higher interest expense from this bond deal partially offset earnings.

    Quarterly dividend
    $0.4375
    Q2 FY25

    Declared per share, payable to shareholders of record as of August 29.

    Data center capacity built
    2,000 megawatts
    Q2 FY25

    Already built data center capacity.

    Hydroelectric capacity for Google
    3,000 megawatts
    future

    To be delivered under a renewable energy framework agreement with Google.

    Infrastructure transactions committed
    $30 billion
    YTD Q2 FY25

    Committed to major infrastructure transactions year-to-date.

    Real estate sales
    $15 billion
    YTD Q2 FY25

    Sales across senior housing, net lease, student housing, and hospitality.

    Infrastructure sales
    $13 billion
    YTD Q2 FY25

    Sales including partial interest in Patrick Terminals, final stake in NGPL, and stabilized data centers.

    Private equity returns to clients
    $10 billion
    LTM Q2 FY25

    Total returns to clients over the past two years.

    Just Group portfolio
    $36 billion
    future

    Potential investment management opportunity for Brookfield upon closing of the acquisition.

    U.S. 401(k) and retail annuities assets
    $10 trillion
    current

    Total assets in these channels, on par with institutional pools.

    U.S. private wealth client opportunity
    $10 trillion
    current

    Additional opportunity from private wealth clients.

    BWS managed annuities portfolio
    $100 billion
    Q2 FY25

    Growing portfolio of annuities managed on behalf of Brookfield Wealth Solutions.

    Partner manager FRE upside potential
    $250 million
    future

    Potential additional FRE from partner managers; Angel Oak is incremental to this figure.

    Expense growth rate
    10%
    FY25

    Expected pace for the back half of the year, reflecting continued building mode.

    Fee-bearing capital CAGR target
    16% to 17%
    5-year

    From previous Investor Day forecast.

    Industry KPIs

    3
    MetricValueDetails
    Fundraising inflows$22 billionUSD
    Fee related earnings$676 millionUSD
    Deployment realizations$85 billionUSD

    Deals & partnerships

    11
    Swedish GovernmentPublic-private investment program to build next-generation digital infrastructure for AI and cloud computing.$10 billion

    Framework allows integration of renewable, infrastructure, and real estate capabilities to deliver a full suite solution at scale.

    GoogleRenewable energy framework agreement to deliver hydroelectric capacity.initial contracts valued at more than $3 billion

    Will deliver up to 3,000 megawatts of hydroelectric capacity across the United States, providing stable, clean baseload power for AI and data operations.

    Colonial PipelineAcquisition of a major refined products pipeline.over $30 billion

    Part of major infrastructure transactions totaling over $30 billion in enterprise value. Largest refined products pipeline in the United States.

    Wells Fargo RailAcquisition of a railcar leasing platform.over $30 billion

    Part of major infrastructure transactions totaling over $30 billion in enterprise value. Second-largest railcar leasing platform in North America.

    Hotwire CommunicationsAcquisition of a fiber-to-the-home provider.over $30 billion

    Part of major infrastructure transactions totaling over $30 billion in enterprise value. Leading U.S. fiber-to-the-home provider.

    Duke Energy FloridaAcquisition of a vertically integrated electric utility.over $30 billion

    Part of major infrastructure transactions totaling over $30 billion in enterprise value. Serves 2 million customers with 53,000 miles of transmission and distribution lines and over 13 gigawatts of installed generation capacity.

    Primary WaveIncreased stake in music royalties platform.approximately $350 million

    Invested approximately $350 million towards buying and growing partner managers, including an additional 9% stake in Primary Wave.

    Castlelake / ConcoraParticipation in acquisition of specialty consumer credit manager and origination platform.approximately $350 million

    Invested approximately $350 million towards buying and growing partner managers, including participating in a Castlelake-led acquisition of Concora.

    OaktreeIncreased ownership in Oaktree.approximately $350 million

    Invested approximately $350 million towards buying and growing partner managers, including increasing ownership in Oaktree by 1.5%.

    Angel OakAcquisition of a 50% stake in a nonqualified mortgage origination leader.

    Expected to finalize acquisition of a 50% stake in Angel Oak, which enhances credit capabilities.

    Just GroupAgreement to acquire a leading provider of retirement services in the U.K. individual retirement market.

    Brookfield Asset Management is not contributing capital to the transaction or taking on insurance liabilities. The transaction demonstrates opportunity to service BWS' growing global platform.

    Risks & headwinds

    3
    Higher interest expenseQ2 FY25

    Partially offset earnings due to $750 million bond deal.

    Mitigation: Not explicitly stated as mitigated, but earnings growth still strong.

    Increased competition and tighter credit spreads in U.S. retail channelCurrent

    Discussed, not quantified.

    Mitigation: Focus on quality and durability of products, leadership in real assets, and long-duration inflation-protected cash flows.

    Overcrowded private credit market (sponsor direct lending)Current

    Discussed, not quantified.

    Mitigation: Disciplined approach, focusing on asset-backed finance, real assets, and opportunistic credit where competitive advantages exist and risk-adjusted returns are better.

    What to watch in Q3 FY25

    5

    Global Transition Fund II Final Close

    Q3 FY25
    CurrentOver $15 billion raised
    TargetFinal close with significantly more capital

    Why it matters

    Indicates continued strong demand for energy transition strategies and contributes to fee-bearing capital growth.

    This is already the world's largest energy transition strategy, and we will raise a significantly more capital before our final close later this quarter.

    Q&A highlights

    6

    How is the fundraising backdrop progressing into H2 2025 and 2026, what are key contributors, and how is the overall environment evolving given industry challenges around DPI?

    Management characterized the fundraising environment as incredibly robust, raising more money across more products and geographies than ever. Complementary strategies contributed ~75% of Q2 fundraising, providing stability and ongoing growth. Expects FY25 fundraising to exceed FY24.

    “We would characterize the fundraising environment as incredibly robust. To put it simply, we're raising more money in more places across more products than at any point in our history.”

    asked by Barron Thomas · answered by Connor Teskey

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Megatrends and AI Infrastructure

    Brookfield is leveraging three powerful themes—digitalization, decarbonization, and deglobalization—to drive investment. The company sees AI infrastructure as a major capital formation cycle, having already built 2,000 megawatts of data center capacity and being a leading renewable power provider. This integrated approach, combining energy, land, and development, positions Brookfield as a partner of choice for hyperscalers and governments in developing next-generation AI infrastructure.

    02

    Accelerating Investment and Monetization Activity

    The market environment is constructive, leading to increased transaction volumes. Year-to-date, Brookfield has invested $85 billion and monetized over $55 billion of assets, generating $33 billion in equity proceeds, representing the highest activity levels in years. This includes significant sales in real estate and infrastructure, demonstrating value creation and robust demand for high-quality assets.

    03

    Expansion into Individual Investor Channels

    A new growth engine is emerging from individual investors, including defined contribution plans, insurance-based savings, and private wealth, representing a multi-trillion-dollar opportunity. Brookfield Wealth is on track to raise over $30 billion this year from private wealth and insurance annuity channels, with new offerings in private equity and asset-based finance. The recent acquisition of Just Group in the U.K. further expands its global platform for retirement services.

    04

    Credit Platform Growth and Discipline

    Brookfield's credit platform manages over $250 billion in fee-bearing capital, making it one of the largest globally. The company raised $16 billion across credit strategies in the quarter, deploying over $10 billion. It maintains a disciplined approach, focusing on asset-backed finance, real assets, and opportunistic credit, where competitive advantages and attractive risk-adjusted returns are found, rather than commoditized sponsor direct lending.

    05

    Partner Manager Investments and Strategic Initiatives

    Brookfield continues to invest in and grow its partner managers, including increasing stakes in Primary Wave and Oaktree, and acquiring a 50% stake in Angel Oak. These investments enhance credit capabilities and position the company for long-term revenue growth. The company also declared a quarterly dividend of $0.4375 per share and is prioritizing inclusion in U.S. equity indices like the Russell 1000.

    AI-generated summary of the company’s earnings call. Not investment advice.