Brookfield Asset Management .(BAM) - 2025 Q2 - Quarterly Results

Q2 2025 Earnings Release Financial & Operating Highlights Brookfield Asset Management reported strong Q2 2025 results, with Fee-Related Earnings up 16% to $676 million and Distributable Earnings up 12% to $613 million Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | Twelve Months Ended Jun 30, 2025 | Twelve Months Ended Jun 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fee-Related Earnings (FRE) | $676M | $583M | +16% | $2,695M | $2,281M | +18% | | Distributable Earnings (DE) | $613M | $548M | +12% | $2,535M | $2,249M | +13% | | Net Income attributable to BAM | $620M | $495M | +25% | $2,433M | $1,804M | +35% | | FRE per share | $0.42 | $0.36 | +16.7% | $1.65 | $1.40 | +17.9% | | DE per share | $0.38 | $0.34 | +11.8% | $1.56 | $1.38 | +13.0% | - Over $55 billion in asset sales announced year-to-date 2025, reflecting strong demand for company assets[1][3] - $22 billion of capital raised in Q2, with $97 billion raised over the last twelve months[2] - Quarterly dividend of $0.4375 per share declared, payable September 29, 2025[7] Detailed Operating Performance Operating performance driven by 10% increase in fee-bearing capital to $563 billion, strong fundraising of $22 billion, and $36 billion in asset monetizations Financial Metrics - Fee-bearing capital reached $563 billion at Q2 end, a 10% increase or $49 billion over the last twelve months[9] - Fee-bearing capital growth attributed to strong capital raising, active deployments, insurance capital inflows, and market recovery[9] Fundraising - Total of $22 billion raised in Q2 2025, with nearly 70% from complementary strategies[11] Capital Raised by Strategy in Q2 2025 | Strategy | Capital Raised in Q2 2025 (Billions) | | :--- | :--- | | Credit | $16.0 | | Real Estate | $1.8 | | Infrastructure | $1.7 | | Renewable Power & Transition | $1.5 | | Private Equity | $1.3 | Capital Deployment & Notable Transactions - $28 billion of equity capital deployed in Q2[12] - Key deployments include nearly $10 billion in infrastructure and $11.8 billion in credit strategies[12][14][19] - Strategic partnerships formed, including a Hydro Framework Agreement with Google for up to 3,000 MW and a $10 billion digital infrastructure investment in Sweden[13] Asset Monetization - Approximately $36 billion of assets monetized since the start of Q2[15] - Notable monetizations include $12 billion in Real Estate, $9.5 billion in Infrastructure, and $5.8 billion in Renewable Power & Transition[19] Liquidity and Commitments - As of June 30, 2025, $128 billion in uncalled fund commitments, with $54 billion expected to generate $540 million in annual fees upon deployment[15] - Corporate liquidity of $1.5 billion maintained on the balance sheet as of June 30, 2025[16] Corporate Developments Strategic corporate developments include increased stake in Primary Wave, FTSE Russell 1000 Index addition, and post-quarter agreement to acquire Just Group - Ownership in Primary Wave increased to 44% for approximately $80 million[20] - BAM added to the FTSE Russell 1000 Index, effective July 1, 2025[20] - Post-quarter end, agreement to acquire Just Group, a UK retirement services provider, managing a significant portion of its $36 billion portfolio without capital contribution or insurance liabilities[20] Financial Statements (Unaudited) Unaudited financial statements show total assets rose to $16.1 billion, total revenues grew to $1.09 billion, and net income attributable to BAM reached $620 million Statement of Financial Position (Balance Sheet) Consolidated Statement of Financial Position | (US$ millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $16,143 | $14,157 | | Total Liabilities | $6,972 | $5,069 | | Total Equity | $9,171 | $9,088 | | Total Liabilities and Equity | $16,143 | $14,157 | Statement of Operating Results (Income Statement) Consolidated Statement of Operating Results | (US$ millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $1,090 | $916 | | Total Expenses | ($541) | ($373) | | Income Before Taxes | $659 | $660 | | Net Income | $584 | $518 | | Net income attributable to BAM | $620 | $495 | Reconciliation of Non-GAAP Measures Reconciliation from GAAP Net Income to non-GAAP Fee-Related Earnings ($676 million) and Distributable Earnings ($613 million) for Q2 2025 Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings | (US$ millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $584 | $518 | | Adjustments... | ... | ... | | Fee-Related Earnings | $676 | $583 | | Add: Investment & Other Income (Net) | $14 | $29 | | Add: Equity-Based Compensation Costs | $11 | $12 | | Less: Cash taxes | ($88) | ($76) | | Distributable Earnings | $613 | $548 | Appendix Appendix provides supplementary company information, definitions of non-GAAP measures, and important legal disclaimers including forward-looking statements - Brookfield Asset Management is a global alternative asset manager with over $1 trillion of assets under management[32] - Non-GAAP measures like Fee-Related Earnings (FRE) and Distributable Earnings (DE) are used to assess operating results, which may not be comparable[36][37] - Report contains forward-looking statements subject to significant business, economic, and competitive uncertainties, cautioning against undue reliance[40][43]