Executive Summary

Record quarter: Q4 fee-related earnings (FRE) rose 17% YoY to $677M ($0.42/sh) and distributable earnings (DE) rose 11% YoY to $649M ($0.40/sh); FRE margin reached 59% as operating leverage kicked in .
Capital formation and activity were robust: $29B raised (record organic quarter), $16B deployed, and $9B monetized in Q4; fee-bearing capital (FBC) ended at $539B, up 18% YoY but flat sequentially amid Q4 credit outflows timing and marks .
Dividend raised 15% to $0.4375 per share quarterly; corporate structure simplified so BAM now reflects 100% of the asset management business, positioning for broader index inclusion .
2025 setup: management expects stronger fundraising with flagship rounds “over 15% larger,” growing insurance inflows (> $25B/yr), and continued monetizations; AI infrastructure, private credit, and energy transition remain major growth vectors .

What Went Well and What Went Wrong

What Went Well
- Record Q4 financials: “record fee-related earnings, distributable earnings and fundraising in the fourth quarter… FRE was $677 million … margins … 59%” .
- Fundraising momentum: $29B in Q4 across >40 strategies (credit >$20B), with flagships expected to be >15% larger than prior vintages and multiple complementary strategies scaling .
- Strategic and balance sheet wins: 15% dividend hike; corporate structure swap closed, enabling broader U.S. index eligibility; $1.8B corporate liquidity and capacity to issue up to $5B of IG debt to seed growth .
What Went Wrong
- Sequential FBC plateau: FBC ended Q4 at $539B, flat vs Q3 as credit outflows and fee-on-deployment dynamics offset gross inflows; management explained the “funny” Q4 credit outflow as portfolio optimization at insurance and monetizations preceding deployment .
- Total revenues declined YoY in Q4 ($1,063M vs $1,130M) as “other revenues, net” normalized vs Q4’23, despite higher management fees and carried interest .
- Estimates visibility: Wall Street consensus (S&P Global) was unavailable at time of analysis due to data limits, constraining explicit “vs. estimates” comparisons (see Estimates Context) [GetEstimates error].

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Fee-Related Earnings (FRE, $M)	$583	$644	$677
Distributable Earnings (DE, $M)	$548	$619	$649
FRE per share ($)	$0.36	$0.39	$0.42
DE per share ($)	$0.34	$0.38	$0.40
FRE Margin (%)	—	58%	59%
Total Revenues ($M)	$916	$1,117	$1,063
Net Income attributable to BAM ($M)	$495	$544	$688
Diluted Net Income per share ($)	$0.30	$0.33	$0.42

Segment activity and fundraising/deployments (Q4 2024):

Fundraising by Group (Q4 2024)
- Renewable Power & Transition: $4.2B (incl. $3.5B for BGTF II)
- Infrastructure: $2.5B (incl. $700M supercore; ~$700M private wealth)
- Private Equity: $1.8B (incl. $1.0B Middle East fund; $500M special investments)
- Real Estate: >$0.7B (incl. ~$0.5B for BSREP V)
- Credit: ~$20B (incl. $9.2B Oaktree, $6.6B insurance, $1.7B infra debt, ~$0.9B other partner managers)
Deployments and Monetizations (Q4 2024)
- Deployed $16B; notable: $4.5B in transition (incl. $3.2B Neoen), $2.4B in real estate (multifamily, student housing, Tritax), $7.7B in credit .
- Monetized ~$9B; notable: $1.4B in transition (Saeta Yield, partial Shepherds Flat), $1.8B in real estate (UK shopping centers), and post-Q4 Clarios upfinancing distribution $4.5B .

Key KPIs and balance sheet:

KPI	Q2 2024	Q3 2024	Q4 2024
Fee-Bearing Capital (FBC, $B)	$514	$539	$539
Capital Raised ($B)	$68	$21	$29
Capital Deployed ($B)	~20 (deployed/committed)	~20 (deployed/committed)	$16
Monetizations ($B)	—	>$17	~$9
Uncalled Commitments ($B)	$107	$106	$115
Corporate Liquidity ($B)	$1.9 (cash/equivalents)	$2.1 (incl. undrawn revolver)	$1.8 (incl. $750M revolver)
Quarterly Dividend ($/sh)	$0.38	$0.38	$0.4375

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share (quarterly)	Payable Mar 31, 2025	$0.38 (declared for Q3’24)	$0.4375 (15% increase)	Raised
Flagship fund sizes	2025	—	Latest flagship rounds expected to be >15% larger than prior vintages	Raised outlook
BGTF II (Transition) final close	H1 2025	—	Expect final close in H1 2025	Timeline affirmed
BSREP V (Real Estate) final close	H1 2025	—	Expect final close in H1 2025	Timeline affirmed
Insurance channel inflows	2025+	—	Annual inflows on track to >$25B per year	New metric articulated
Margins	2025	Margin improvement underway	Expect further margin improvement, driven by revenue growth and operating leverage	Positive trajectory

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q3)	Current Period (Q4)	Trend
AI/Technology infrastructure	Q2: 10.5 GW Microsoft agreement; data center capacity up 4x; positioned across renewables, data centers, semis . Q3: AI infra as core pillar; Intel fab, data centers, fiber; nuclear via Westinghouse .	Announced €20B AI infrastructure program in France; see AI demand persisting despite efficiency gains (DeepSeek); focus on contracted builds with hyperscalers .	Strengthening opportunity set; scaling multi-faceted solutions.
Private credit expansion	Q2: $61B raised in credit (incl. AEL); building insurance/SMA capabilities . Q3: Insurance Solutions building; first $1B 3rd-party SMA; partner managers (Castlelake) .	Credit raised >$100B in 2024; Q4 credit inflows ~$20B with fee-on-deploy; focus on IG private credit, origination capacity, capital markets capabilities .	Scale channel expanding; revenue realization tied to deployment.
Fundraising momentum	Q2: $68B raised; multiple strategies . Q3: $21B raised with broad-based strength .	Record Q4 organic $29B; 2025 fundraising expected to exceed 2024; flagships >15% larger .	Accelerating into 2025.
Insurance channel	Q2: AEL onboarding began; platform build-out . Q3: $4.5B BWS inflows; $1B 3rd-party SMA; targeting $50B in 5 years .	Q4 insurance inflows $6.6B; portfolio optimization caused temporary credit outflow optics; expect >$25B/yr inflow trajectory .	Growing, with mix shift to private funds over time.
Corporate structure/index inclusion	Q3: Announced plan for BAM to reflect 100% of AM business; head office moved to NY .	Transaction closed; market cap now reflects full AM business; positions for broader U.S. index inclusion .	Milestone achieved; potential passive inflows ahead.
Macro/tariffs/regulatory	—	Limited cross-border risk; assets are local and demand inelastic; insulated from tariff shocks .	Macro views steady and constructive.
Internal AI use	—	Early but meaningful efficiency gains; sharing use cases across platform; initial focus on cost/productivity .	Emerging internal lever.
Margins/expenses	Q3: Margins improving; investment ahead of revenues now turning .	Q4 margin 59%; comp/benefits down $15M vs Q3; expect continued improvement with growth .	Upward trajectory.

Management Commentary

Strategic positioning: “Powerful secular trends in digitalization, clean energy and private credit… will continue to drive growth” and support the “long-term goal of 15% annual growth in cash flow on a per share basis” .
Fundraising outlook: “We expect our latest flagship rounds to be over 15% larger … and 2025 to be better than 2024” .
AI opportunity: “We can be leading in this asset class by a significant margin… we don’t build on spec… long-term contracts with large hyperscalers” .
Balance sheet/capital: “$1.8B of liquidity… capacity to issue up to $5B of debt at strong investment-grade levels” to fund growth .
Dividend and index path: “Declared a quarterly dividend increase of 15% to $0.4375” and closed the swap so the full value of the asset management business is reflected in BAM’s market cap, aiding broader index inclusion .

Q&A Highlights

Buyer’s and seller’s market: Management expects the favorable environment for both deployment and monetization to persist through 2025, with robust liquidity and a strong pipeline of asset sales .
Investment-grade private credit: Scaling origination; leveraging infrastructure/real estate foundations and Oaktree; internal capital markets capabilities to originate/syndicate .
Private wealth channel: Raised ~$20B to date; turning down capital in some wealth products to maintain disciplined deployment; 30–50% growth outlook remains intact .
Q4 credit outflows explained: Insurance portfolio optimization and monetizations caused FBC optics; fee realization awaits deployment; expect deployment of not-yet-fee-bearing capital to be a lever for FRE .
AI/data centers (France program): Multi-faceted solutions across equity and debt; supply-demand remains favorable even with efficiency gains; build only against long-term contracts .
Margins/expenses: Margin improvements driven by revenues and operating leverage should continue; cost growth plateauing relative to revenue .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) Wall Street consensus for Q4 2024 EPS and revenue, but the data service returned a “Daily Request Limit Exceeded,” so explicit “vs. consensus” comparisons are unavailable at this time [GetEstimates error].
Where consensus drives positioning or model updates, we recommend refreshing S&P Global consensus to compare against: FRE ($677M), DE ($649M), diluted EPS ($0.42), and total revenues ($1,063M) from BAM’s reported results .

Key Takeaways for Investors

The quarter validated BAM’s high-operating-leverage model: record FRE/DE with a 59% margin, strong organic fundraising, and a 15% dividend hike signal durable earnings power into 2025 .
Fundraising momentum looks set to accelerate (flagships >15% larger), while insurance (> $25B/yr) and private wealth channels deepen the capital base; deployment should convert large not-yet-fee-bearing credit AUM into fees .
Secular tailwinds (AI infrastructure, energy transition, private credit) plus BAM’s scale and multi-asset capabilities underpin differentiated access to large, contracted opportunities (e.g., France AI program) .
Corporate structure simplification (100% of AM reflected in BAM) increases eligibility for U.S. indices, creating a potential technical bid as passive ownership rises .
Watch list near term: deployment pace (to activate fee-on-deploy credit), monetization cadence (to recycle capital and support fundraising), and margin progression as incremental revenues flow through .
Risk checks: sequential FBC flatness and revenue mix (“other revenues” normalization) are manageable given pipeline, but they highlight the importance of timely deployment and stable performance fees .
Catalysts: final closes for BGTF II and BSREP V (H1’25), launch/scale of complementary strategies, potential index inclusion events, and additional AI-infrastructure partnerships .

Notes: All financial and operational figures are per company materials cited. S&P Global consensus data was unavailable at time of analysis due to a data access limit, so “vs. estimates” comparisons are not included.

Brookfield Asset Management Ltd. (BAM)·Q4 2024 Earnings Summary