Brookfield Asset Management reported record-breaking earnings and capital raise in the fourth quarter of 2024, fueled by the growth of its credit business.
Brookfield Asset Management announced a record-breaking quarter, raising US$29 billion in the fourth quarter of 2024, primarily driven by its credit business . Distributable earnings surged 11% year-over-year to $649 million, equivalent to 40 cents per share, surpassing the analysts' average estimate of 39 cents. The credit arm secured $20 billion in new capital, with almost half originating from Oaktree funds and strategies, and another $6.6 billion from insurance clients.
Brookfield's global transition fund attracted $3.5 billion in capital, while its real estate flagship fund raised around $500 million. CEO Bruce Flatt and President Connor Teskey highlighted the substantial growth of credit within their business, now representing the single largest source of assets under management. They emphasized Brookfield's strategic move to consolidate its credit operations under one umbrella, encompassing infrastructure and real estate lending funds along with partnerships with Oaktree Capital Management, LCM Partners, Primary Wave, Castlelake LP, and 17Capital.This trend of alternative asset managers expanding beyond private equity into credit markets is mirrored by other giants like Blackstone Inc. and Apollo Global Management Inc. Brookfield's total fee-bearing capital increased to $539 billion, an 18% jump from the previous year, although remaining stable compared to the third quarter. Despite the positive earnings report, shares dipped as much as 2% in New York. Brookfield remains optimistic about its future, citing favorable conditions for capital deployment and monetization. They point to strong demand for investments in data centers, telecom towers, fiber, and renewable power, with plans to invest €20 billion ($20.7 billion) in developing data centers and AI infrastructure in France over the next five years. Teskey also expressed confidence in Brookfield's potential to benefit if alternative asset managers gain access to defined-contribution plans like 401(k)s, a prospect increasingly seen as positive given President Donald Trump's anticipated return to the White House, which could create an opening for such a shift
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