Introduction
Brookfield Asset Management Ltd. (BAM), a leading global alternative asset manager, oversees more than $1 trillion in assets under management (AUM) and $563 billion in fee-bearing capital (FBC) across its diversified platforms in renewable power and transition, infrastructure, private equity, real estate, and credit. With a proven track record spanning over 25 years, BAM has delivered strong, risk-adjusted returns by investing in high-quality, essential assets that benefit from long-term secular trends such as decarbonization, deglobalization, and digitalization. The company’s Q2 2025 earnings report highlights continued momentum with strong financial results, robust fundraising, and effective capital recycling.
Financial Performance Overview
BAM’s Q2 2025 results demonstrate consistent double-digit growth in core metrics, building on prior periods. The company benefits from a scaled platform with over $1 trillion in assets under management (AUM), enabling efficient fee generation and capital recycling. Key non-GAAP metrics like FRE and DE, which exclude volatile items such as carried interest realizations, provide a stable view of operational strength. Net income growth outpaced DE due to lower effective tax rates and higher equity method income.
| Metric | Q2 2025 | Q1 2025 | Q2 2024 | YoY Change (Q2’25 vs. Q2’24) | Sequential Change (Q2’25 vs. Q1’25) |
|---|---|---|---|---|---|
| Fee-Related Earnings (FRE) | 676 | 698 | 583 | +16% | -3% |
| FRE per Share | 0.42 | 0.43 | 0.36 | +17% | -2% |
| Distributable Earnings (DE) | 613 | 654 | 548 | +12% | -6% |
| DE per Share | 0.38 | 0.40 | 0.34 | +12% | -5% |
| Net Income Attributable to BAM | 620 | 581 | 495 | +25% | +7% |
| Fee-Bearing Capital (end of period, $B) | 563 | 549 | 514 | +10% | +3% |
| Metric | H1 2025 | H1 2024 | YoY Change (%) |
|---|---|---|---|
| Fee-Related Earnings (FRE) | $1,374 | $1,135 | +21% |
| Distributable Earnings (DE) | $1,267 | $1,095 | +16% |
| Net Income Attributable to BAM | $1,201 | $936 | +28% |
| Fee-Bearing Capital (end of period, $B) | $563 | $514 | +10% |
| Capital Deployed (YTD, $B) | $44 | $31 | +42% |
From the statement of operating results, total revenues grew 19% YoY to $1.09 billion, fueled by a 13% increase in management and incentive fees ($931 million) and higher carried interest net of Brookfield Corporation (BN) attributions ($94 million, up 74%). Expenses rose 45% to $541 million, driven by higher compensation and operating costs, reflecting business expansion. Share of income from equity method investments tripled to $181 million, contributing to stable pre-tax income of $659 million (flat YoY). Lower income tax expense ($75 million vs. $142 million) boosted net income. For the first half of 2025, net income reached $1.201 billion, up 28% from $936 million in H1 2024.
Segment Analysis
BAM operates across five core segments: Renewable Power & Transition, Infrastructure, Private Equity, Real Estate, and Credit. Each contributed to fundraising, though Credit dominated inflows at $16 billion (73% of quarterly total), including $10 billion across partner managers and $4.4 billion from insurance accounts. This reflects BAM’s growing insurance solutions business, which provides stable, low-cost capital.
- Renewable Power & Transition ($1.5B raised): Momentum from decarbonization trends, with $800 million for the second global transition fund (total raised: $15B+). Key deal: Framework with Google for up to 3,000 MW of hydro capacity. Deployed $1.3 billion; monetized $5.8 billion.
- Infrastructure ($1.7B raised): $1.0 billion in supercore strategies. Announced $10 billion investment in Sweden’s digital infrastructure (e.g., data centers for AI). Deployed nearly $10 billion; monetized $9.5 billion.
- Private Equity ($1.3B raised): $500 million in special investments. Increased stake in Primary Wave (music IP) to 44% for $80 million; participated in $200 million Concora acquisition.
- Real Estate ($1.8B raised): $500 million for fifth flagship fund. Deployed unspecified; monetized $12 billion, highlighting liquidity in a challenged sector.
- Credit ($16B raised): Strongest performer, leveraging partnerships. Deployed $11.8 billion.
Overall, segments align with megatrends, with infrastructure and renewables benefiting from AI/digitalization and energy transition demands. Credit’s scale provides diversification, mitigating real estate headwinds.
Capital Activities: Fundraising, Deployment, and Monetizations
Fundraising totaled $22 billion in Q2, contributing to $97 billion LTM, down slightly from Q1 2025’s $25 billion quarterly but robust amid market uncertainty. Uncalled commitments stood at $128 billion, with $54 billion yet to earn fees (projected ~$540 million annual FRE once deployed).
Deployment reached $28 billion equity, focused on high-conviction opportunities in infrastructure ($10B) and credit ($11.8B). This dry powder utilization supports future fee growth.
Monetizations were a standout: $36 billion since Q2 start, pushing YTD to over $55 billion. This capital recycling generates carried interest potential (realized net carried interest not broken out but embedded in revenues) and frees liquidity for new investments, a core BAM strategy that has driven consistent returns.
Executive Commentary and Outlook
President Connor Teskey emphasized „continued momentum“ from asset sales and fundraising, noting $55 billion YTD monetizations as evidence of demand for BAM’s leadership in key sectors. He highlighted proprietary partnerships (e.g., with governments and corporates) to capitalize on decarbonization, deglobalization, and digitalization. Post-quarter events, like the agreement to acquire U.K. retirement services provider Just Group, signal expansion in credit/insurance.
Outlook is positive, with $128 billion in dry powder positioning BAM to invest counter-cyclically. Forward-looking statements in the release caution on risks like market volatility, regulatory changes, and economic conditions, noting assumptions on continued trend acceleration. BAM expects strong long-term value creation but disclaims guarantees, aligning with standard disclaimers.
Conclusion
Brookfield Asset Management’s Q2 2025 earnings reinforce its position as a resilient leader in alternative investments, delivering results that align with investor satisfaction through consistent performance across economic cycles. This success stems from BAM’s strategic emphasis on local capital deployment, enabling effective investments in essential assets without disruption from tariffs. By focusing on domestically oriented opportunities in sectors like infrastructure and renewables, BAM navigates deglobalization trends adeptly, turning potential challenges into growth avenues. With a diversified model aligned to megatrends such as decarbonization and digitalization, BAM is well-equipped to sustain long-term value creation in an evolving global landscape.
