Financial Data and Key Metrics - Fee-bearing capital (FBC) grew by nearly $100 billion over the past year to $539 billion, a 23% increase [9] - Fee-related earnings for Q3 were up 14% YoY to a record $644 million, or $0.39 per share [9] - Distributable earnings grew 9% YoY to a record $619 million, or $0.38 per share [9] - The company deployed nearly $50 billion over the past year, including $20 billion in Q3 alone, with over $100 billion of uncalled capital still available [40] - The company raised $21 billion in Q3, with credit accounting for more than half of the capital raised ($14 billion) [59] Business Line Performance - Real estate: Over $5 billion of real estate assets were sold, generating a 28% annualized return and a 2.5x multiple of capital [34] - Renewable power: Nearly $2 billion of equity proceeds were generated from renewable power asset sales, with an aggregate IRR of 27% and a 2.5x multiple of capital [36] - Infrastructure: The company completed the acquisition of a portfolio of 76,000 telecom sites in India for $800 million of equity capital [43] - Private equity: The acquisition of Network International for $2 billion of equity capital was completed, with plans to merge it with Magnati to form a combined payment processing platform across the Middle East [43] Market Performance - The company sees attractive investment opportunities, especially for large transactions or opportunities that need capital to grow [11] - There is a robust bid for high-quality cash-generative assets, which benefits the company given its investment makeup [12] - The company expects a significant return of capital to limited partners, which will support a constructive fundraising environment [12] Strategic Direction and Industry Competition - The company is focused on key themes such as private credit, AI infrastructure, and energy transition, which are shaping the future of the global economy [27] - The company is well-positioned in renewable power, infrastructure, and real estate, combined with its private equity and credit capabilities [27] - The company is investing in AI infrastructure, including a $30 billion semiconductor fabrication plant with Intel in Arizona and a large data center portfolio [21] - The company is also investing in nuclear energy through its acquisition of Westinghouse, which services approximately half the global fleet of nuclear power plants [24] Management Commentary on Operating Environment and Future Outlook - The company expects strong earnings growth to continue for the foreseeable future, with market headwinds turning into tailwinds [14] - The company is strategically positioned in areas that matter most, such as energy transition, AI infrastructure, and private credit [52] - The company aims to double its business over the next five years by expanding fundraising, growing its credit business, and entering new asset classes [67] Other Important Information - The company declared a dividend of $0.38 per share for Q3, payable on December 31, 2024 [79] - The company is simplifying its corporate structure to position itself for broader index inclusion, with plans to have 100% of the asset management company publicly traded [73][74] Q&A Session Summary Question: AI Infrastructure as a Dedicated Strategy - The company is considering AI infrastructure as a dedicated strategy, focusing on the infrastructure side of AI rather than private equity or growth [80][84] Question: Margins in the Credit Business - The credit business is viewed as lower margin, but the company has built its business to generate attractive margins through a combination of full fees and third-party SMA business [86][88] Question: Fundraising in Renewable and Transition Business - The company expects to hit its fundraising target for the renewable and transition business, with strong momentum in deployment and monetization [92][97] Question: Corporate Structure Changes and S&P 500 Eligibility - The company's corporate structure changes are aimed at increasing liquidity and broader index inclusion, with potential eligibility for the S&P 500 [98][100] Question: Expense Growth and Margin Expansion - The company expects margins to continue to improve, with Q4 expenses higher than Q3 and margins in 2025 higher than in 2024 [102][106] Question: Capital Raising Expectations for 2024 and 2025 - The company expects strong fundraising in 2024 and 2025, driven by flagship products and a favorable market environment [107][112] Question: Voting Rights and Tax Implications of Corporate Structure Changes - The corporate structure changes will have no impact on voting rights or tax implications for shareholders [115] Question: Insurance Portfolio and FRE Lift - The company is in the early stages of reshaping its insurance portfolio, with the FRE lift expected to accelerate over the next couple of years [118][120] Question: Uncalled Commitments and Fee Risk - The fee risk from uncalled commitments is modest, with 90% of commitments not expiring until after 2028 [124] Question: Outflows and Monetization Plans - The company expects strong inflows in 2025, with monetization activity leading to capital returning to LPs and then reinvested in new fund commitments [126][128] Question: Fee-Related Earnings and Fee Rates - The company expects to double its business over the next five years, driven by flagship funds, complementary strategies, and credit business growth [130][132] Question: Seller's and Buyer's Market Dynamics - The company is experiencing both a seller's and buyer's market, driven by robust demand for high-quality assets and a shortage of capital for new opportunities [133][137] Question: Wealth Infrastructure Fund Sales - The wealth infrastructure fund saw strong sales in Q3, driven by investor demand, with potential for new wealth products in private equity and credit segments [139][141] Question: BPG Management Fee Increase - The increase in BPG management fees was driven by capital raises and catch-up fees, as well as moving assets to BWS [142][143] Question: Insurance SMA Cadence - The company has ongoing conversations to add more insurance SMA clients, with the platform built to handle scale capital [148][151]

Brookfield Asset Management (BAM) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.56%. A quarter ago, it was expected that this investment manager would post earnings of $0.35 per share when it actually produced earnings of $0.34, delivering a surprise of -2.86%.Over the last four q ...

Soaring geopolitical tensions worldwide, particularly between the United States and China, have accelerated a move toward deindustrialization in the U.S. and the West at large. In particular, the United States is aggressively working to reduce its reliance on China for critical products and industries, suchIf you want access to our Portfolios that have crushed the market since inception and all our current Top Picks, join us for a 2-week free trial at High Yield Investor.We are the fastest growing high yiel ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Brookfield Asset Management (BAM) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers ...

Perhaps the hardest aspect of retiring on dividends is dealing with uncertainties caused by macroeconomic conditions. Even if a business has a strong balance sheet, generates stable cash flows, and covers its dividend comfortably with earnings, a sharp economic downturn, prolonged recession, or skyrocketing inflationIf you want access to our Portfolios that have crushed the market since inception and all our current Top Picks, join us for a 2-week free trial at High Yield Investor.We are the fastest growing ...

High-yield stocks ( SCHD ) have had a very strong couple of months due to the market pricing in the Fed's pivot to rate cuts. In particular, utilities ( XLU ) and REITs ( VNQ ) have led theIf you want full access to our market-crushing Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Investor.We are the fastest-growing and best-rated stock-picking service on Seeking Alpha with a perfect 5/5 rating from 180 reviews. You won't be charged a penny during the fr ...

MarsBars Prominent billionaire investors have recently been pouring capital into the Alternative Investments sector. For example, Mario Gabelli of GAMCO Investors recently increased his stake in KKR (KKR), a leading alternative asset manager. Prominent investor Ron Baron also recently opened a new position in KKR. Additionally, famous value investor Joel Greenblatt also made a significant increase in his KKR stake. Meanwhile, another prominent alternative asset manager, Brookfield Asset Management (BAM), wa ...

matdesign24 The US economy has proven to be remarkably resilient in the post-COVID era, even as many of its leading trading partners in Europe, China, and Japan have encountered economic challenges. However, with interest rates rising significantly since the start of 2022, and the artificial intelligence boom driving big tech stocks higher, the utility sector has faced the perfect storm. Rising interest rates have made its bond-like cash flows less attractive to investors, while the AI boom has sucked c ...

Former EDP Renewables Executive Further Strengthens Scout's Ability to Execute on 19 GW PipelineBOULDER, Colo., Aug. 21, 2024 /PRNewswire/ -- Today, Scout Clean Energy ("Scout"), a leading national renewable energy developer-owner-operator, announced the addition of Kris Cheney as Chief Development Officer, further fortifying Scout's established development capabilities. Cheney brings more than a decade of leadership experience developing wind, solar, and storage projects to Scout as it continues its signif ...

Financial Data and Key Metrics Changes - The company reported $1.1 billion in fee revenues for Q2 2024, a 6% increase year-over-year, and $4.5 billion over the last 12 months, up 5% [31] - Fee-related earnings (FRE) for the quarter were $583 million, reflecting a 6% increase, while distributed earnings (DE) were $548 million, up 4% [32] - Fee-bearing capital surpassed $514 billion, marking a 12% increase over the past three months and a 17% increase year-over-year [34] Business Line Data and Key Metrics Changes - The credit business experienced a 19% growth in fee revenues compared to Q2 2023, driven by strong market conditions and the acquisition of Castlelake [29][36] - The renewable power and transition business raised $4 billion in capital during the quarter, indicating robust fundraising activity [37] Market Data and Key Metrics Changes - The global economy is showing solid growth with modest inflation, and central banks have begun cutting interest rates, which is expected to support further growth [17] - Credit spreads have tightened, leading to increased financing opportunities across the portfolio, with $75 billion in financings executed this year [19] Company Strategy and Development Direction - The company aims to leverage its unique position as a leading renewable power and infrastructure investor to provide integrated solutions for data centers and renewable energy [46][48] - The focus remains on organic growth, with expectations to add another trillion in assets under management (AUM) over the next four years, primarily through the insurance and credit platforms [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market's constructive backdrop for transactions, despite recent volatility, and anticipates increased transaction activity in the second half of the year [62][63] - The company expects to see significant monetization activity, particularly in the renewable power and transition sectors, as well as in private equity [78] Other Important Information - The Board of Directors declared a dividend of $0.38 per share for Q2, payable on September 27, 2024 [42] - The company has a strong liquidity position with $107 billion of uncalled fund commitments and $1.9 billion in cash on hand at the end of the quarter [41][42] Q&A Session Summary Question: Can you discuss your unique position as the largest combined renewable power and infrastructure investor? - Management highlighted the significant demand for infrastructure to support AI and cloud computing, noting that they are well-positioned to provide both power and data center capacity [46][47] Question: What is the progress on backfilling BGTF I? - Management indicated that they have all necessary deals in the pipeline to fill BGTF I and are approximately 20% deployed on BGTF II [50] Question: Can you elaborate on the embedded revenues and the opportunity for capital rotation? - Management confirmed that the AEL mandate will drive significant revenue growth, with expectations for a meaningful rotation of liquid securities into private funds over the next one to two years [54][55] Question: How do you view the current economic data and its impact on the market? - Management believes the recent volatility does not reflect the overall constructive market backdrop, with continued robust growth and liquidity expected [62][63] Question: What are the growth prospects for the insurance segment post-AEL? - Management emphasized the dramatic growth expected from the AEL mandate and the significant demand for insurance annuities, which will drive growth in the insurance platform [81][83]