Brookfield Asset Management .(BAM)2025-05-06 10:45Financial Performance - Fee-related earnings increased by 26% year-over-year to $698 million, or $0.43 per share, driven by over $140 billion of capital raised in the past twelve months [3][8] - Distributable earnings rose by 20% to $654 million, or $0.40 per share, compared to the prior year period, primarily due to growth in fee-related earnings [4][8] - Total revenues for the quarter reached $1.081 billion, up from $884 million in the prior year, with management and incentive fee revenues increasing to $954 million [18] - Net income attributable to BAM for the quarter was $581 million, a 32% increase from the prior year period, primarily due to growth in fee-related earnings [4][21] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024 [22] - Fee-Related Earnings (FRE) reached $698 million, up 26% from $552 million in the same quarter last year [22] - Distributable Earnings (DE) amounted to $654 million, compared to $547 million in Q1 2024, reflecting a 19% growth [22] Capital and Fund Management - Fee-bearing capital grew to $549 billion, reflecting a $90 billion increase or 20% over the last twelve months [6][7] - The company raised $25 billion in the first quarter of 2025 across various strategies, including $7.1 billion in real estate and $14 billion in credit [9] - The flagship real estate strategy reached $16 billion, making it the largest real estate strategy ever raised by the company [2][9] - The company has $119 billion of uncalled fund commitments, which will generate approximately $520 million in fees annually once deployed [12] - A majority stake acquisition in Angel Oak, a mortgage and consumer products platform with over $18 billion in assets, is expected to enhance the company's credit capabilities [13] Liquidity and Financial Position - The company completed a bond offering of $750 million, improving its liquidity position and receiving an "A" credit rating from Fitch [12] - Interest expense paid to related parties rose to $13 million, up from $4 million in the previous year [22] Tax and Allocations - The provision for taxes increased to $75 million from $71 million year-over-year [22] - Carried interest allocations decreased significantly from $123 million in Q1 2024 to a negative $2 million in Q1 2025 [22] Investment Management - The company manages over $1 trillion in assets across various sectors, including renewable power and infrastructure [28] - Share of income from equity method investments improved to a loss of $58 million from a loss of $80 million year-over-year [22] Strategic Focus - The company emphasizes the importance of Fee-Related Earnings and Distributable Earnings as key performance measures [32][33] - Future outlook includes a focus on maintaining strong returns and managing risks associated with economic conditions and investment strategies [37][39]