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Brookfield Asset Management Ltd. (BAM)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: FRE rose 17% YoY to $754M ($0.46/share) on $30B fundraising and record $23B deployments; DE increased 7% YoY to $661M ($0.41/share); total revenues grew to $1.25B, and net income reached $724M .
  • Platform momentum: Fee-bearing capital reached $581B (+8% YoY); uncalled commitments were $125B ($55B not yet fee-earning), and corporate liquidity increased to $2.6B after a $750M 30-year bond; dividend maintained at $0.4375 .
  • Strategic catalysts: Agreement to acquire the remaining 26% of Oaktree (non-dilutive, immediately accretive to FRE; expected close 1H26), completion of majority interest in Angel Oak, and a U.S. partnership to develop at least $80B of new nuclear reactors using Westinghouse technology—an AI-power capacity enabler .
  • 2026 setup: Management expects fundraising in 2026 to exceed 2025 and outlined a plan to double the business by 2030; integration synergies and partner-manager scaling underpin margin improvement and FRE growth trajectory .

What Went Well and What Went Wrong

  • What Went Well
    • Record operating momentum: $30B raised (over 75% from complementary strategies), record $23B deployed, and $15B equity monetized in Q3, supporting all-time-high earnings .
    • Structural growth vectors: Launching an AI Infrastructure Fund (first close expected before year-end) and a $5B Bloom Energy partnership; U.S. nuclear partnership (≥$80B of reactors) positions BAM at the center of AI power build-out. Quote: “AI… is driving an unprecedented demand for infrastructure… We estimate that AI-related infrastructure investments will exceed $7 trillion over the next decade.” — Connor Teskey .
    • Credit scale and strategy: Oaktree full buy-in creates a fully integrated credit platform; Angel Oak adds U.S. mortgage credit origination; wealth solutions broaden distribution. Quote: “Bringing Oaktree fully into Brookfield… enhances our ability to deliver the full breadth of Brookfield's credit capabilities to clients.” — Bruce Flatt .
  • What Went Wrong
    • Mix-driven margin optics: Consolidated margin at 58% masks dilutive mix from partner managers and temporarily lower Oaktree margins as capital returns exceed calls; management flagged these as transitory with core margins expanding .
    • DE headwinds: DE growth was tempered by higher interest expense on new bonds and lower interest/investment income despite strong FRE gains .
    • Estimate transparency: S&P Global consensus data was unavailable via the tool, limiting explicit beat/miss framing for revenue and EPS this quarter (see Estimates Context).

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Total Revenues ($USD Millions)$1,081 $1,090 $1,252
Net Income Attributable to BAM ($USD Millions)$581 $620 $724
Diluted EPS ($)$0.36 $0.38 $0.44
Fee-Related Earnings (FRE) ($USD Millions)$698 $676 $754
FRE per Share ($)$0.43 $0.42 $0.46
Distributable Earnings (DE) ($USD Millions)$654 $613 $661
DE per Share ($)$0.40 $0.38 $0.41
  • Drivers and commentary: FRE growth reflected record fundraising and deployments; DE growth was partially offset by higher interest expense on new bonds and lower interest/investment income; Q3 margin was 58% (57% LTM) .

Segment Activity (Q3 2025)

SegmentFundraising ($B)Deployment ($B)Monetizations ($B)
Infrastructure3.5 9.3 4.2
Renewable Power & Transition6.3 —2.1
Private Equity2.1 ——
Real Estate2.0 1.9 —
Credit~16.0 9.9 5.0

Platform KPIs

KPIQ1 2025Q2 2025Q3 2025
Fee-Bearing Capital ($USD Billions)$549 $563 $581
Capital Raised in Quarter ($USD Billions)$25 $22 $30
Equity Deployed in Quarter ($USD Billions)$16 $28 $23
Monetizations (Quarter)~$10B capital ~$36B assets since start of Q2 $25B assets; $15B equity value
Uncalled Fund Commitments ($USD Billions)$119 $128 $125
Corporate Liquidity ($USD Billions)$1.4 (or $2.1 pro forma) $1.5 $2.6
Dividend per Share ($)$0.4375 $0.4375 $0.4375

Note: Q2 monetizations reflect assets monetized “since the beginning of the second quarter” rather than strictly the quarter-end cut, per press release wording .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Fundraising Outlook2025 → 20262025 to exceed 2024’s ~$85–90B 2026 expected to exceed 2025 (infra + PE flagships, Just Group closing, partner managers) Raised trajectory
AI Infrastructure Fund2025—First close expected before year-end New item
Infrastructure FlagshipEarly 2026—Launch expected early 2026 New timing
Margin TrajectoryMulti-yearPlan to improve margins (Investor Day)On track/ahead of plan; core margins expanding; mix dilutive near term Maintained with positive progress
Oaktree Buy-in Close1H 2026—Expected close 1H26; non-dilutive, accretive to FRE New timing
Just Group (BWS)1H 2026—Expected close 1H26; adds ~$36B assets to BWS portfolio (BAM to manage) New timing
DividendQuarterly$0.4375 $0.4375 (Dec 31, 2025 pay date) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
AI/Data infrastructureQ1: AI megatrend among growth vectors; $16B deployed including Neoen; large power/digital needs . Q2: $10B Sweden AI/digital infra; Google Hydro Framework up to 3,000 MW .Launching AI Infrastructure Fund; $5B Bloom Energy partnership; U.S. nuclear partnership to support AI power needs .Accelerating and scaling
Energy transition/nuclearQ1: Transition fundraising; National Grid U.S. renewables commitment . Q2: Transition flagship ramp; monetized hydro/wind stakes .Transition Fund closed at $20B; landmark U.S. Westinghouse nuclear program (≥$80B) .Record scale; policy tailwinds
Credit positioningQ1: Opportunistic credit fund closed $16B; $9.2B credit deployments . Q2: $16B raised in credit (incl. partner managers, insurance) .Oaktree buy-in; fee rate up marginally with Castlelake one-offs; focus away from commoditized direct lending .Platform integration; disciplined
Private equityQ1: $1.2B raised; strategy focus on essential services . Q2: Next flagship vintage “soon”; retail channel build .BCP VII launched; expected to be largest ever; new evergreen PE fund for individuals (Canada) .Scaling institutional and retail
Real estateQ1: $6B inflows to real estate flagship; largest strategy ever . Q2: $1.8B raised; improving backdrop .Monetizing stabilized assets; refinancing 660 Fifth ($1.3B); limited new supply vs improving sentiment .Recovery and selective deployment
Macro/ratesQ1/Q2: N/AFed has begun lowering rates; liquidity ample; M&A volumes up ~25% YoY; $1T announced deals in Q3 .Constructive for transactions

Management Commentary

  • “We delivered strong results this quarter, highlighted by records in both capital raising of $30 billion and deployment of $23 billion, driving earnings to an all-time high for our business.” — Connor Teskey, President .
  • “Bringing Oaktree fully into Brookfield… enhances our ability to deliver the full breadth of Brookfield’s credit capabilities to clients.” — Bruce Flatt, CEO .
  • “AI… is driving an unprecedented demand for infrastructure… We estimate that AI-related infrastructure investments will exceed $7 trillion over the next decade.” — Connor Teskey, President .
  • “Our margin in the quarter was 58%… increase driven by [partner manager mix diluting], temporarily lower Oaktree margins, and increasing core margins.” — Hadley Peer Marshall, CFO .
  • On Oaktree integration benefits: “Collapse [subsidiary] balance sheet… monetize positions… fund a large portion of our purchase price… significant operating leverage and unmatched client solutions.” — Connor Teskey .

Q&A Highlights

  • 2026 outlook: Management expects 2026 fundraising to exceed 2025, with Oaktree, Just Group, and Angel Oak adding nearly $200M run-rate FRE; overall momentum to reach/exceed five-year plan .
  • Credit economics: Slightly elevated blended fee rate driven by mix shift and Castlelake one-time transaction fees; core trend positive; limited exposure to recent credit events .
  • Margins: Consolidated at 58%; near-term dilution from partner manager mix and temporarily lower Oaktree margins; core margins rising and margin plan ahead of schedule .
  • Retail/wealth expansion: Launch of private equity wealth product following successful infra product; aiming for bank distribution platforms; preparing for 401(k) channel .
  • PE flagship differentiation: Focus on essential services and operational improvement (25%+ 20-year IRRs) supports expectation BCP VII will be largest ever .

Estimates Context

  • S&P Global consensus estimates for BAM’s quarterly revenue and EPS were unavailable via the tool for Q1–Q3 2025, so we cannot quantify beats/misses versus Street this quarter. Values retrieved from S&P Global*.
  • Given unavailability, we assess performance versus prior periods and company targets. FRE and DE grew YoY, with FRE margin at 58% in Q3 and 57% LTM; drivers were record fundraising and deployments offset by higher interest expense and lower interest/investment income .

Key Takeaways for Investors

  • Earnings quality improving: Record FRE and durable fee momentum supported by $581B fee-bearing capital and $125B uncalled commitments (with $55B not yet fee-earning), implying embedded fee upside once deployed .
  • Catalysts into 2026: Oaktree buy-in (accretive, non-dilutive), Just Group and Angel Oak scale the credit/insurance/wealth flywheel; management expects 2026 fundraising to top 2025 .
  • AI-power thesis: AI Infrastructure Fund, Bloom partnership, and the Westinghouse-led nuclear program create a multi-year investment pipeline across data centers and baseload power .
  • Margin trajectory: Near-term mix dilutes headline margin, but core business margins are expanding; integration synergies and scale should support multi-year margin improvement .
  • Real estate optionality: Improving markets and active monetizations plus dry powder position BAM to lean into attractive dislocations while crystallizing gains on stabilized assets .
  • Credit discipline: Avoiding commoditized direct lending; focus on real assets, asset-backed finance, and opportunistic credit supports fee rate resilience and underwriting quality .
  • Income stability: Dividend maintained at $0.4375; balance sheet bolstered by long-dated bond and revolver capacity expansion, raising corporate liquidity to $2.6B .

Supporting documents and data sources: Q3 earnings press release and 8-K ; Q3 earnings call transcript ; prior quarters’ press releases and ; strategic press releases (Oaktree, nuclear, evergreen PE) .