Executive Summary

Q2 2025 was strong on core fee metrics: Fee-Related Earnings (FRE) rose 16% YoY to $676M ($0.42/share) and Distributable Earnings (DE) rose 12% YoY to $613M ($0.38/share), while net income attributable to BAM increased 25% YoY to $620M, underpinned by $97B of fundraising over the last 12 months and 10% YoY growth in fee-bearing capital to $563B .
Strategic activity accelerated: announced over $55B of asset sales YTD and monetized ~$36B since the beginning of Q2; deployed $28B of equity in the quarter, including major infrastructure, credit, and renewables transactions; uncalled commitments reached $128B, with $54B not yet earning fees .
New AI-linked partnerships are potential stock catalysts: Sweden program to invest up to $10B in AI infrastructure and a first-of-its-kind Google Hydro Framework Agreement to deliver up to 3,000 MW of carbon-free hydro capacity in the U.S., reinforcing BAM’s positioning across digitalization and clean power .
Dividend maintained at $0.4375/share (payable Sept 29, 2025); BAM was added to the FTSE Russell 1000 Index effective July 1, 2025, enhancing index inclusion momentum and investor visibility .

What Went Well and What Went Wrong

What Went Well

Fundraising breadth and durability: Raised $22B in Q2 (nearly 70% from complementary strategies), with $97B raised LTM; strong contributions across credit ($16B), infra ($1.7B), real estate ($1.8B), and transition ($1.5B). “We’re raising more money in more places across more products than at any point in our history.” – Connor Teskey .
Strategic partnerships in AI and clean power: Sweden AI infrastructure program (up to $10B) and Google Hydro Framework Agreement (up to 3,000 MW) position BAM to deliver sovereign-scale solutions; “We have scale, experience and integrated approach that few can match.” – Bruce Flatt .
Realizations and capital recycling: Announced >$55B of asset sales YTD and monetized ~$36B since the beginning of Q2 across real estate, infrastructure (including data centers and NGPL), and renewables, supporting DPI and fee growth .

What Went Wrong

Mix-driven margin pressure and higher interest expense: FRE margin was 56% (down vs Q1’s 57%), with CFO noting higher interest expense on a $750M bond and lower interest income as cash was deployed; expenses seen tracking ~10% growth due to build-out initiatives (wealth/credit) .
Estimates unavailability: Wall Street consensus (SPGI) for quarterly EPS and revenue was unavailable at time of query, limiting beat/miss assessment vs Street expectations [GetEstimates result: empty].
Near-term deployment/fee timing in credit: Significant not-yet-fee-bearing capital in credit requires deployment to translate to FRE; management emphasized deployment pipeline but acknowledged near-term timing effects .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenues ($USD Millions)	$916	$1,081	$1,090
Diluted EPS ($USD)	$0.31	$0.36	$0.38
Fee-Related Earnings (FRE) ($USD Millions)	$583	$698	$676
FRE per share ($USD)	$0.36	$0.43	$0.42
Distributable Earnings (DE) ($USD Millions)	$548	$654	$613
DE per share ($USD)	$0.34	$0.40	$0.38
Net Income attributable to BAM ($USD Millions)	$495	$581	$620

FRE Margin %

Metric	Q1 2025	Q2 2025
FRE Margin (%)	57%	56%

Revenue Components

Revenue Component ($USD Millions)	Q1 2025	Q2 2025
Management and incentive fee revenues	$954	$931
Carried interest income, net of amounts attributable to BN	$86	$94
Other revenues, net	$41	$57
Other revenues of consolidated funds	—	$8
Total Revenues	$1,081	$1,090

Key KPIs and Capital Activity

KPI	Q1 2025	Q2 2025
Fee-bearing capital ($USD Billions)	$549	$563
Fundraising ($USD Billions)	$25	$22
Equity deployed ($USD Billions)	$16	$28
Monetizations (since quarter start) ($USD Billions)	~$10	~$36
Uncalled fund commitments ($USD Billions)	$119	$128
Not earning fees ($USD Billions)	$52	$54
Corporate liquidity ($USD Billions)	$1.4 (or $2.1 pro forma)	$1.5
Dividend per share ($USD)	$0.4375	$0.4375

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q3 2025	$0.4375 declared for Q2 2025 payout Jun 30	$0.4375 payable Sept 29, 2025; record Aug 29, 2025	Maintained
Fundraising outlook	FY 2025	Expect 2025 organic fundraising > 2024	“We very much expect fundraising this year to be bigger than last year.”	Confirmed
Flagship timing (PE, Infra)	2H 2025–2026	PE launch in 2025; infra to follow	PE launch in 2025; Infra late 2025/early 2026; meaningful first closes in 2026	Timing refined
Expense growth trajectory	2H 2025–2026	Continued investment in wealth/credit; operating leverage improving	Expenses ~10% growth as build continues; steady-state forward	Maintained (near-term investment)
FRE margin long-term	Multi-year	Target ~60% over time	Q2 margin 56% (up 1pp YoY); long-term margin supported by revenue growth mix	Maintained (near-term mix headwind)
Insurance: Just Group	2026–2028	Insurance channel growing with IMAs; migration to private funds incremental	Expect regulatory approvals in 2026; portfolio shifts to private funds over 2–5 years	New update detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/data center infrastructure	EUR 20B France AI program; integrated power/data center capabilities; efficiency gains won’t dent long-term demand	Sweden up to $10B AI program; Google Hydro up to 3,000 MW; “one of the largest capital formation cycles of this generation”	Accelerating
Insurance channel/Just Group	Brookfield Wealth Solutions as major inflow driver; optimizing portfolios into private funds	Agreement to acquire Just Group; BAM to manage part of $36B portfolio; migration approvals expected 2026; fee uplift via private funds	Expanding
Private credit market	Growth to ~$250B fee-bearing capital; disciplined focus on ABS/real assets/opportunistic vs commoditized direct lending	Raised $16B; partner managers >$10B; infra mezz debt first close to $4B; deployment robust; focus on ABS/real assets	Scaling with discipline
Real estate cycle	Flagship fund set to be largest ever; early signs of recovery	Leases at record levels (NY/London); monetizations up 4x YoY; financings tighter by 300–450bps vs 18–24 months ago	Recovering strongly
Index inclusion	Structure simplified; aim broader U.S. indices	Added to Russell 1000 in July; prioritizing further U.S. inclusion	Improving visibility
Retirement/401(k) access	Anticipated regulatory evolution; alternatives becoming standard in portfolios	Intend to pursue all channels; product quality and durability key to success	Building groundwork

Management Commentary

“We delivered strong results this quarter… Fee related earnings up 16% to $676,000,000… fee bearing capital to $563,000,000,000… The convergence of megatrends—digitalization, decarbonization, deglobalization—has created a powerful investment landscape. We are uniquely positioned to lead.” – Bruce Flatt .
“We agreed with Google to… deliver up to 3,000 MW of carbon-free hydroelectric capacity across the United States… We announced up to $10 billion to build next-generation digital infrastructure in Sweden… We deployed $28 billion of equity capital in the second quarter.” – Connor Teskey .
“Our margin expanded 56%, up 1% from the prior year quarter… expenses around that 10% level as we continue building… added to the Russell 1000 Index in June; we will continue accessing the bond market to support growth.” – Hadley Peer Marshall .

Q&A Highlights

Fundraising backdrop: Management expects 2025 fundraising to exceed 2024, driven by complementary strategies and durable demand; Q2 saw ~three-quarters of fundraising from complementary products .
Insurance growth and Just Group: Transaction could add stable fee-bearing capital; regulatory approvals expected in 2026 with 2–5 year migration of assets into private funds; focus away from commoditized direct lending to asset-backed/real assets .
Margin/expenses: FRE margin 56% in Q2; expenses ~10% growth as wealth/credit platforms scale; long-term margin trajectory intact .
PE evergreen/wealth channel: Semi-liquid PE launched with first closes expected later this year; retail/wealth solutions targeting ~$10B in 2025; wealth channel is the primary area of incremental investment spend .
Real estate: Monetizations and deployments accelerating; record leasing in NY/London; financing conditions improved markedly vs 18–24 months ago .

Estimates Context

Wall Street consensus (S&P Global) quarterly EPS and revenue estimates were unavailable at time of query; therefore, we cannot assess beats/misses vs Street for Q2 2025. Estimates columns are shown as unavailable.

Metric	Actual Q2 2025	SPGI Consensus Q2 2025
Diluted EPS ($USD)	$0.38	Unavailable*
Total Revenues ($USD Billions)	$1.090	Unavailable*
FRE per share ($USD)	$0.42	Unavailable*

*Values retrieved from S&P Global.

Where estimates may need to adjust: Strength in carried interest and “other revenues” and robust monetizations may support upward revisions to fee-related outlook and capital recycling assumptions; near-term margin headwinds from mix, interest expense, and investment in channels could temper near-term FRE margin assumptions .

Key Takeaways for Investors

Core earnings quality: FRE and DE growth is durable and primarily fee-based; fee-bearing capital growth and uncalled commitments provide visibility for continued compounding .
Proprietary AI/clean power pipeline: Sweden and Google hydro frameworks underscore BAM’s unique ability to deliver integrated AI campuses with secured energy—potential medium-term upside to deployment pace and ancillary fee streams .
Capital recycling momentum: >$55B asset sales YTD and ~$36B monetized since Q2 start support DPI and redeployment at attractive risk-adjusted returns—key to sustaining fundraising scale and investor confidence .
Wealth/retirement channel build: Expect ongoing spend to capture DC/retail opportunities; product quality and durability central to share gains—medium-term FRE uplift as strategies scale .
Credit focus: Discipline around ABS/real assets/opportunistic credit mitigates spread compression; significant not-yet-fee-bearing capital presents deployment-driven earnings upside .
Index inclusion and liquidity: Russell 1000 addition and bond market access enhance visibility and growth funding flexibility; dividend maintained at $0.4375 supports total return profile .
Near-term watch items: FRE margin mix effects (expenses/interest), timing of credit deployment, regulatory path/timing for Just Group portfolio migration in 2026 .

Brookfield Asset Management Ltd. (BAM)·Q2 2025 Earnings Summary