Executive Summary

Record quarter: Fee-Related Earnings rose 26% YoY to $698 million ($0.43/share), Distributable Earnings rose 20% YoY to $654 million ($0.40/share), and Net Income attributable to BAM increased 32% YoY to $581 million .
Capital formation and deployment remained robust: $25 billion raised, $16 billion deployed, ~$10 billion monetized, and fee-bearing capital reached $549 billion (+20% LTM) .
Liquidity and balance sheet strength improved: $750 million 10-year notes priced at 5.795% with “A/A-” ratings; corporate liquidity was $1.4 billion ($2.1 billion pro forma) at quarter-end .
Strategic catalysts: real estate flagship reached ~$16 billion (largest BAM real estate strategy to date), Oaktree stake increased to 74%, and announced €20 billion AI infrastructure program in France .
Dividend maintained: Board declared $0.4375/share for Q1 (Q4 2024 increase to $0.4375) .

What Went Well and What Went Wrong

What Went Well

Real estate fundraising momentum: “Closed $6 billion in the First Quarter for Real Estate Flagship—Currently at $16 Billion; Now Set to Be Our Largest Real Estate Strategy” . Bruce Flatt: “Fee-related earnings reached a record $698 million” .
Credit platform scale and diversification: Raised $14 billion in credit (including $6.7 billion from insurance) and closed the 12th opportunistic credit flagship at $16 billion; increased Oaktree ownership to 74% .
Liquidity and ratings: Inaugural $750 million senior notes at 5.795% amid strong demand; “A” from Fitch and “A-” from S&P, enhancing flexibility for growth and capital deployment .
Secular positioning: €20 billion program to advance AI infrastructure in France; continued leadership across AI supply chain, renewables, and private credit .

What Went Wrong

Taxes dampened DE growth: DE growth “partially offset by higher taxes” versus FRE-led strength .
Listed affiliates headwind: Fee-bearing capital increases were “partially offset by a decline in the stock prices of our listed affiliates” .
Sequential margin compression: FR margin cited at ~57% in Q1 (up 300 bps YoY) versus 59% in Q4 and 58% in Q3, reflecting mix and operating investments .
Fee activation timing in credit: Portions of credit fundraising only earn fees upon deployment, while monetizations reduce FBC immediately; management highlighted this dynamic in recent quarters .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Total Revenues ($USD Millions)	$884	$1,117	$1,063	$1,081
Net Income attributable to BAM ($USD Millions)	$441	$544	$688	$581
Diluted EPS ($USD)	$0.28	$0.33	$0.42	$0.36
Fee-Related Earnings ($USD Millions)	$552	$644	$677	$698
Distributable Earnings ($USD Millions)	$547	$619	$649	$654

Margin Metric	Q3 2024	Q4 2024	Q1 2025
Fee-Related Margin (%)	58%	59%	57%

Segment fundraising and activity (Q1 2025):

Fundraising by segment: | Segment | Capital Raised ($USD Billions) | |---------|-------------------------------| | Renewable Power & Transition | $1.5 | | Infrastructure | $0.8 | | Private Equity | $1.2 | | Real Estate | $7.1 | | Credit | $14.0 |
Deployments by segment: | Segment | Capital Deployed ($USD Billions) | |---------|-------------------------------| | Renewable Power & Transition | $3.5 | | Infrastructure | ~$0.5 | | Private Equity | $1.1 | | Real Estate | $1.8 | | Credit | $9.2 |
Monetizations by segment: | Segment | Equity Monetized ($USD Billions) | |---------|-------------------------------| | Renewable Power & Transition | >$0.6 (plus $0.2 signed) | | Infrastructure | >$1.0 | | Real Estate | $1.2 | | Credit | $6.0 |

Key performance indicators (Q1 2025):

KPI	Value
Fee-Bearing Capital ($USD Billions)	$549
Capital Raised (Quarter) ($USD Billions)	$25
Capital Deployed (Quarter) ($USD Billions)	$16
Capital Monetized (Quarter) ($USD Billions)	~$10
Uncalled Fund Commitments ($USD Billions)	$119
Of which not yet fee-earning	$52 (≈$520M fees annually when deployed)
Corporate Liquidity ($USD Billions)	$1.4 ($2.1 pro forma for bond)
Dividend per Share (Quarter) ($USD)	$0.4375
Senior Notes Issued	$750M due 2035 @ 5.795%
Credit Ratings	Fitch “A”, S&P “A-”

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Q2 2025 declaration cadence	$0.4375 set in Q4 2024	$0.4375 declared for Q1, payable 6/30/2025	Maintained
Organic Fundraising Outlook	FY 2025	“Better than 2024” (Q4 call)	“No change to forecast; confidence maintained” (Q1 call)	Maintained
Fee-Related Margin LT Target	Multi-year	~60% LT stride (management commentary)	Reiterated focus; ongoing investment in credit/fundraising channels	Maintained
Balance Sheet & Leverage	2025	Capacity up to ~$5B at IG ratings (Q4)	A/A- ratings; inaugural $750M notes; repeat issuer plan	Enhanced
Index Inclusion Positioning	2025	Announced structure changes (Q3/Q4)	Arrangement completed; BAM owns 100% of asset management; ~$95B market cap	Implemented

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
AI/Technology Initiatives	Emphasis on AI infra, data centers, power; Intel JV; Microsoft 10.5 GW renewables	Expanded AI infra pipeline; €20B France program announced near Q4	Reiterated secular tailwinds; partnership-led deployments; France AI program highlighted	Accelerating
Supply Chain/Tariffs/Macro	Tailwinds emerging as rates normalize	Constructive fundraising/monetization environment	Resilience via essential assets; deglobalization/onshoring strategy; tariffs not altering trajectory	Resilient
Private Credit Build-out	Foundation for insurance SMAs and ABF; Castlelake partnership	$20B raised in Q4; investment-grade private credit build-out; capital markets capabilities under consideration	$14B raised in Q1; Angel Oak majority stake; target to double credit in 5 years	Expanding
Real Estate Strategy	Early signs of recovery; monetizations at attractive IRRs	Flagship real estate fundraising in progress	$5.9B closed for fifth flagship; total ~$16B; largest ever	Improving
Index Inclusion/Corporate Structure	Steps to enhance shareholder ownership and index inclusion	Head office to NY; arrangement outlined	Arrangement completed; ~1.64B shares outstanding	Implemented
FR Margins/Operating Leverage	Margins improving, operating leverage visible	Margin 59% in Q4	FR margin ~57% in Q1; long-term ~60% reiterated	Mixed (YoY up; sequential lower)

Management Commentary

Bruce Flatt: “Fee-related earnings reached a record $698 million for the quarter, up 26% year-over-year… Fee-bearing capital now stands at approximately $550 billion, up 20% compared to last year” .
Connor Teskey: “Periods of uncertainty have historically created the most compelling opportunities to deploy capital… We have nearly $120 billion of uncalled long-term oriented capital ready to deploy” .
Hadley Peer Marshall: “We completed our inaugural bond offering in April, issuing $750 million of 10-year senior unsecured notes… with high investment-grade ratings of A from Fitch and A- from S&P” .
Connor Teskey on strategic positioning: “We announced a $20 billion AI infrastructure commitment alongside the French government… our platform’s breadth and reputation unlock differentiated access” .

Q&A Highlights

Fundraising outlook: Management reaffirmed expectation that 2025 organic fundraising will exceed 2024 and sees current uncertainty concentrating flows to scaled managers; Q1 outlook unchanged versus initial forecast .
Balance sheet and leverage: With A/A- ratings and inaugural bond, BAM has ample capacity; intends to be a repeat issuer; opportunistic buybacks deployed ($50M repurchased in Q1 per call) .
Real estate flagship demand: ~$16B raised; investors want to catch the bottom across 12–36 months; strong U.S. demand .
Private credit and Angel Oak: Focus on asset-backed lending; Angel Oak complements mortgage credit and insurance channel needs; pipeline strong .
Margins and expenses: FR margin improved YoY by ~300 bps to ~57%; continued investment in fundraising and credit capabilities with LT margin stride near ~60% .
Capital markets/fee potential: Building capital markets capabilities; potential incremental fee revenue in “low hundreds of millions” over 4–5 years, not in prior 5-year plan .
Partner managers: Increasing ownership stakes expected to add ~$250M to FRE over 5 years, including Oaktree .

Estimates Context

Wall Street consensus estimates via S&P Global for Q1 2025 were unavailable at request time; no valid EPS or revenue consensus retrieved. Values retrieved from S&P Global.*

Implications:

With no published consensus, formal “beat/miss” cannot be assessed. However, management highlighted YoY strength (FRE +26%, DE +20%, Net Income +32%) and sequential resilience alongside ongoing capital raises and deployments .

Key Takeaways for Investors

Earnings quality and compounding: High proportion of durable, long-term/perpetual fee-bearing capital supports stable FRE and DE growth; YoY metrics strong despite macro volatility .
Fundraising pipeline: Final closes for Transition (BGTF II) and Real Estate flagships expected in coming months; complementary strategies gaining share in 2H 2025 .
Credit expansion: Strategic acquisitions (Angel Oak), insurance channel flows, and Oaktree opportunistic capacity underpin aim to double credit AUM over 5 years; watch deployment pace for fee activation .
AI infrastructure leverage: €20B France program plus existing data centers, renewables, and power agreements position BAM to capitalize on AI-driven infra demand .
Liquidity and ratings as catalysts: A/A- ratings and inaugural $750M notes broaden financing flexibility; potential repeat issuance supports growth funding and opportunistic buybacks .
Margin trajectory: FR margins improved YoY but eased sequentially; continued investment in growth channels with LT ~60% margin target; monitor operating leverage as fundraising scales .
Near-term focus: Real estate flagship deployments, insurance SMA allocations to private strategies, Colonial Enterprises midstream acquisition closing, and continued monetizations could drive fee-bearing capital rotation and earnings momentum .

All claims above are sourced from BAM’s Q1 2025 8-K press release and earnings materials, prior quarter documents, and Q1 call commentary: .

Brookfield Asset Management Ltd. (BAM)·Q1 2025 Earnings Summary