Brookfield Asset Management Quarterly Earnings Buoyed by Capital Inflows, Underscored by Investment

By Robb M. Stewart

Brookfield Asset Management expects strong momentum in fundraising to continue in the coming quarters after it raised a record $30 billion in capital during the third quarter, helping drive a jump in earnings.

The asset manager's fundraising over the past 12 months grew to more than $100 billion, brought in from a broad range of its strategies.

At the same time, favorable markets allowed Brookfield to deploy $23 billion into investment opportunities during the latest quarter, the largest amount ever, and supported the sale of $25 billion worth of assets, representing $15 billion of equity value.

The New York-based fund manager's third-quarter distributable earnings, a measure of cash that can be returned to shareholders, rose 6.8% to $661 million, or 41 cents, from a year earlier. The result beat the $647.3 million analysts polled by FactSet had forecast.

Net income increased to $724 million, or 44 cents a share, from $544 million, or 34 cents, in the same period a year earlier. Fee-related earnings were up 17% to an all-time high of $754 million in the just-ended quarter, topping the $725 million analysts expected.

Revenue increased to $1.25 billion in the three months from $1.12 billion last year, with increases in management and incentive fees and carried interest income.

Brookfield said nearly 80% of the capital it raised in the third quarter came from its complementary strategies.

That included the final institutional closing of the second vintage of its global transition flagship strategy for $20 billion, exceeding its target to become what Brookfield said is the world's largest private fund dedicated to the transition to clean energy. Its recent flagship real-estate fund also exceeded expectations and is expected on close of the regional sleeves will be Brookfield's largest real-estate strategy ever raised at more than $17 billion.

Brookfield forecast strong fundraising ahead, led by the seventh vintage of its recently launched private equity flagship fund, the sixth vintage of its infrastructure flagship fund that is set to launch early next year, and the first close of its inaugural artificial intelligence infrastructure fund expected before year-end. The AI infrastructure fund is expected to be among Brookfield's largest first-time strategies.

Capital deployed during the quarter included $3.8 billion toward the acquisition of Hotwire Communications and $3.4 billion for the acquisition of Colonial Enterprises, as well as $1.9 billion of capital in real estate that included the acquisitions of European lifestyle hostel platform Generator Hostels and a Singapore industrial portfolio.

Asset sales for the period included $1.7 billion from a portfolio of data center assets developed by the company's Data4 platform and $1.7 billion from the sale of Australian containing terminal operator Patrick Terminals, plus $5 billion monetized across its credit platform that included $2.2 billion of its opportunistic debt investments.

As of the end of September, Brookfield had a total of $125 billion of uncalled fund commitments, $55 billion of which it said aren't earnings fees but earn about $550 million a year when deployed. It held about $2.6 billion of cash, short-term financial assets and undrawn capacity on a revolving credit on its balance sheet.

Since the end of the quarter, Brookfield and its Toronto-based parent Brookfield Corp. unveiled plans to buy the outstanding 26% interest in alternative asset manager Oaktree for a collective roughly $3 billion. It also completed a deal for a majority stake in Angel Oak, an asset manager focused on specialty mortgage and consumer credit solutions with $11 billion of fee-bearing capital.

In October, Brookfield also entered a strategic partnership that has committed the U.S. government to investing $80 billion in new nuclear power plants across the country using the technology of Westinghouse, which Brookfield jointly owns with Canadian uranium producer Cameco.

Write to Robb M. Stewart at robb.stewart@wsj.com

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November 07, 2025 07:00 ET (12:00 GMT)