Brookfield Asset Management .(US:BAM)2024-11-08 22:32Assets Under Management - As of September 30, 2024, Brookfield Asset Management has over $1 trillion in assets under management (AUM) across various sectors including renewable power, infrastructure, real estate, private equity, and credit[39]. - The renewable power and transition segment has $103 billion in AUM, with a focus on low-carbon energy investments[52]. - The infrastructure segment has $202 billion in AUM, focusing on essential goods and services across utilities, transport, midstream, and data infrastructure sectors[55]. - The real estate segment manages over $272 billion in AUM, investing in iconic properties in dynamic markets[59]. - The private equity segment has $141 billion in AUM, focusing on high-quality businesses across business services and industrial sectors[63]. - As of September 30, 2024, Brookfield has $314 billion in assets under management (AUM) in its credit management division[67]. Financial Performance - For the three months ended September 30, 2024, net income was $129 million, an increase from $122 million in the prior period, driven by higher income from the Asset Management Company[73]. - The Manager recorded net income of $355 million for the nine months ended September 30, 2024, compared to $356 million in the prior period, impacted by higher interest expenses[74]. - Net income for Q3 2024 was $537 million, an increase of 5.3% from $510 million in Q3 2023[79]. - Revenues for Q3 2024 were $1.1 billion, representing a 25% increase from $893 million in Q3 2023[80]. - Total revenues for the Asset Management Company for the three months ended September 30, 2024, were $1,117 million, up from $893 million in the prior year[76]. - For the nine months ended September 30, 2024, net income was $1.4 billion, a decrease from $1.6 billion in the same period in 2023[91]. Fee Revenues and Distributable Earnings - The company aims to pay out approximately 90% of its Distributable Earnings to shareholders quarterly, reinvesting the balance back into the business[42]. - Fee Revenues for the three months ended September 30, 2024, were $1.2 billion, a 9% increase compared to the prior period, mainly due to a $96 million rise in base management fees[173]. - Distributable Earnings for the three months ended September 30, 2024, were $619 million, reflecting a 9% increase from the prior period, driven by higher Fee-Related Earnings[173]. - For the nine months ended September 30, 2024, Fee Revenues totaled $3.5 billion, a 6% increase from the prior period, primarily due to a $159 million rise in base management fees[175]. Expenses and Costs - Total expenses for the Asset Management Company for the three months ended September 30, 2024, were $476 million, compared to $313 million in the prior year[76]. - Compensation and benefits for Q3 2024 were $326 million, up 56% from $208 million in Q3 2023, primarily due to higher share-based compensation[86]. - Total expenses for the nine months ended September 30, 2024, were $1.3 billion, an 11% increase from $1.2 billion in the same period in 2023[99]. Capital and Investments - As of September 30, 2024, the company had Fee-Bearing Capital of $539 billion, with 88% being long-dated or perpetual, providing significant stability to earnings[42]. - The company managed approximately $259 billion of Fee-Bearing Capital across long-term private funds as of September 30, 2024[164]. - Fee-Bearing Capital in permanent capital vehicles and perpetual strategies reached approximately $211 billion as of September 30, 2024[164]. - Fee-Bearing Capital for Private Equity as of September 30, 2024, increased to $43.7 billion, up $4.9 billion or 13% from the previous period[220]. Strategic Initiatives - The company is pursuing strategic M&A opportunities to expand capabilities and enhance growth[42]. - The AEL Mandate increased the Manager's ownership in the Asset Management Company from approximately 25% to 27% following the acquisition of American Equity Investment Life Holding Company[74]. Market and Economic Conditions - The company is subject to various risks including market volatility, regulatory changes, and economic conditions that could impact future results[31]. - The overall increase in Fee-Bearing Capital was partially offset by distributions to clients and outflows due to redemptions within liquid and perpetual strategies[168][170].