- Brookfield Asset Management raised a total of $21B in Q3, with $14B coming from its credit-focused units, including Oaktree Capital and Brookfield Wealth Solutions.
- Distributable earnings for the quarter increased 9% YoY to $619M, exceeding analyst expectations.
- The firm expects credit to be its fastest-growing business, with projections to reach $600B in fee-bearing capital within five years.
According to Bloomberg, Brookfield Asset Management (BN) reported robust Q3 results, spotlighting significant gains in credit operations.
By The Numbers
Of the $21B raised, $14B originated from its credit and insurance businesses, bolstered by strategic partnerships through Oaktree Capital and other affiliate managers.
This segment’s contribution underscored Brookfield’s expansion into private credit as a means to capitalize on growing investor interest in alternative financial products.
Financial Performance
Brookfield’s distributable earnings reached $619M, translating to $0.38 per share, surpassing the Bloomberg consensus by $0.02. Total fee-bearing capital surged to $539B as of the end of September, up 23% YoY. This growth was fueled by acquisitions, such as a 51% stake in private credit manager Castlelake LP.
The credit and lending business is slated to become Brookfield’s largest growth driver, mirroring a trend seen with competitors like Blackstone (BX), which now counts credit as its largest business line.
Brookfield’s ambition is clear: to elevate its credit holdings from $250B to approximately $600B in the next five years.
Recent Transactions
In the past quarter, Brookfield committed or deployed $20B while divesting over $17B in assets. Notable sales included its UK retail parks portfolio and Spanish renewable energy firm Saeta Yield SA.
Additionally, Brookfield recently relocated its HQ from Toronto to NYC, aligning with its goal to be included in U.S. stock indexes and expand its investor base. Starting with its 2024 annual report, Brookfield’s filings will conform to U.S. public company standards, signaling its deeper commitment to the American market.
Brookfield is also eyeing opportunities in emerging sectors. Teskey mentioned that the firm is considering a product tailored to AI infrastructure investments, responding to the growing demand from limited partners seeking exposure to this high-growth theme.
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Looking Ahead
CEO Bruce Flatt and President Connor Teskey indicated that central bank rate cuts have started to boost deal-making activity, unlocking more capital for investment and fundraising.
The improved environment is expected to spur further growth and capital return to clients, aiding fundraising efforts across the financial landscape.
