Brookfield Asset Management Q3 Earnings Call Highlights

Key Points

• Third-quarter earnings grew 15%: Fee-related earnings rose to $864 million and distributable earnings to $763 million, while fee-bearing capital increased 13% year over year to $682 billion.
• Fundraising remained strong: Brookfield raised $25 billion in the quarter and $123 billion in the first nine months of 2026, and expects a record year. Its flagship Core-Plus infrastructure fund had secured $26 billion in commitments toward a $30 billion target.
• Full-year earnings are expected to be modestly below initial expectations because of fee timing; the company also no longer expects a 2026 performance fee from BBU, though it said the fee could be realized later if the share price recovers.

Brookfield Asset Management NYSE: BAM reported 15% growth in third-quarter fee-related and distributable earnings, as fundraising and investment activity increased across its alternative asset management businesses. The company also said full-year earnings would be modestly below its initial expectations because of the timing of two fees.

Fee-related earnings rose to $864 million, or $0.54 per share, while distributable earnings reached $763 million, or $0.47 per share. Fee-bearing capital increased 13% over the preceding 12 months to $682 billion.

Brookfield raised $25 billion during the quarter and $123 billion in the first nine months of 2026. Chief Executive Officer Connor Teskey said the company expects a record fundraising year and a strong fourth quarter.

Infrastructure fundraising gathers pace

Managing Partner Rene Lubianski said Brookfield had raised or received approximately $50 billion in commitments for its infrastructure funds over the past year, excluding its separately managed energy funds.

The sixth vintage of Brookfield’s flagship Core-Plus Global Infrastructure strategy had received $26 billion in commitments, including $13 billion after the third quarter ended. Lubianski said the fund was on track to exceed its $30 billion target in early 2027. Its predecessor received $28 billion.

Other infrastructure strategies also drew capital. Brookfield raised $8 billion for the fourth vintage of its high-yield infrastructure debt strategy and approximately $7 billion, including co-investment, for its open-ended super-core strategy over the preceding 12 months. Its private wealth infrastructure strategy raised $4 billion over that period, bringing it to $10 billion overall.

Chief Financial Officer Hadley Peer Marshall said Brookfield will begin charging fees on the new flagship infrastructure fund on January 1, a couple of months later than initially planned, as it completes deployment of the prior fund. The fundraising is not yet included in reported fee-bearing capital and will appear in first-quarter figures, she said.

Peer Marshall also said Brookfield no longer expects to earn a 2026 performance fee from BBU because its share price is down and the fee is subject to a high watermark. She described the fee as deferred rather than lost, saying it remains available on the same terms if the share price recovers.

AI projects and investment risks

Lubianski said Brookfield’s AI infrastructure fund was on track to reach its $10 billion target next year. He pointed to two recently announced projects: an agreement to provide approximately $9 billion of capital alongside NAVER and NVIDIA for 200 megawatts of AI computing capacity in Korea, and a partnership with Drax to develop an AI factory at a U.K. power station site, with potential investment of more than £20 billion over time.

Asked about the risks of AI infrastructure investment, Teskey said Brookfield generally commits capital after securing permits, equipment supply, offtake agreements and local support. He said the company seeks contracts that provide both a return of and a return on capital during the initial contract period.

Teskey identified counterparty credit risk and operating and construction risk as the principal exposures the company accepts. He said the vast majority of capital already invested in the space was no longer subject to regulatory or permitting risk, while early-stage development dollars at risk were minimal.

Carry realizations and capital deployment

Brookfield recorded $48 million in net realized carried interest during the quarter, its first meaningful realization attributable to shareholders since its spin-out, Peer Marshall said. She identified SpaceX and a financial services firm as the two investments that generated carry during the period.

Peer Marshall said further realizations are expected over the next several quarters, although they are likely to remain episodic in the near term. Assuming funds meet their targets, she said, Brookfield could realize approximately $3 billion of net carry between 2029 and 2031, followed by an average of more than $2 billion annually from 2032 through 2037.

The company invested or committed approximately $36 billion during the third quarter and generated about $12 billion in equity proceeds from asset sales. It ended the period with $148 billion in uncalled fund commitments, including $68 billion not currently earning fees. Peer Marshall said deployment of that portion is expected to generate approximately $680 million in additional annual revenue.

Fundraising outlook and dividend

Looking to 2027, Teskey said Brookfield views its annual fundraising baseline as more than $100 billion and expects next year to be in line with or slightly above that level. He said the company expects to launch its next flagship real estate fund and an Oaktree opportunistic credit fund next year, while continuing to raise capital for its infrastructure and private equity flagships.

Brookfield ended the quarter with $2.1 billion in corporate liquidity following its acquisition of the remaining interest in Oaktree. Its board declared a quarterly dividend of $0.5025 per share, payable December 31 to shareholders of record on November 30.

About Brookfield Asset Management (NYSE:BAM)

Brookfield Asset Management is a global alternative asset manager that invests in and manages assets on behalf of institutional and private wealth clients. Its investment strategies span infrastructure, renewable power and transition, private equity, real estate, and credit.

The company operates across North America, South America, Europe, the Middle East, and Asia-Pacific. Its businesses invest in and manage assets such as energy and transportation infrastructure, renewable power facilities, real estate, and companies across a range of industries.

Brookfield Asset Management became a separately listed company in 2022, following the separation of Brookfield Corporation's asset management business.

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