Brookfield Asset Management Ltd. reported a rise in first-quarter profit, fueled by robust fundraising and an increase in fee-paying assets. Distributable earnings climbed 7% to US$702 million, or 43 cents per share, surpassing the average analyst estimate of 42 cents a share, according to data compiled by Bloomberg.
Strong Fundraising and Capital Growth
The firm's fee-bearing capital grew 12% year-over-year to US$614 billion, following US$108 billion in fundraising over the past 12 months, as stated in its first-quarter earnings release on Friday. Chief Executive Officer Connor Teskey highlighted the company's ample capital for deployment, market-leading positions in fast-growing alternatives segments, and limited exposure to market stress areas.
Teskey, who succeeded Bruce Flatt as CEO in February, noted that Flatt remains chair of the asset manager and continues as CEO of parent company Brookfield Corp., focusing on transforming the firm into an investment-led insurer.
Deployment and Asset Sales
Brookfield Asset has raised US$67 billion since the start of the year, including US$6 billion for its flagship private equity strategy's initial close and a mandate to manage assets of Just Group, a retirement services firm recently acquired by affiliate Brookfield Wealth Solutions. During the quarter, the company deployed or committed to deploying US$34 billion and generated US$8 billion from asset sales.
Nuclear Energy Expansion
New York-based Brookfield, overseeing over US$1 trillion in assets, is solidifying its role in nuclear energy development amid surging electricity demand. Last year, the U.S. government announced a deal to commit at least US$80 billion toward building nuclear reactors across the country with Brookfield-backed Westinghouse Electric Co. Earlier this week, Brookfield agreed to form an atomic power-plant development company with startup The Nuclear Company, initially focusing on potentially restarting an abandoned project in South Carolina.
Recent Transactions
Over the past two months, Brookfield has executed several transactions, including a deal to acquire Canadian renewable energy firm Boralex Inc. alongside Caisse de Depot et Placement du Quebec for $9 billion including debt, and selling a stake in La Trobe Financial to Abu Dhabi's Axight.
