Distributable Earnings of
Leading Our 12 Months Capital Raised to Nearly $100 billion
“We’re off to a strong start this year. All our flagship funds are currently in the market fundraising and we have a number of new strategies that are gaining traction. We have raised
He continued, “Our businesses are well positioned to grow and invest in the current market environment. Our scale and global reach, with over $825 billion of assets under management, give us unique insights and capabilities in raising capital and deploying it into attractive investments.”
Operating Results
Net income for the publicly traded entity
For the periods ended (US$ millions, except per share amounts) |
Three Months Ended | Twelve Months Ended | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Fee-Related Earnings2 | $ | 547 | $ | 492 | $ | 2,162 | $ | 1,924 | |||||||
| Add back: equity-based compensation costs | 19 | 25 | 94 | 88 | |||||||||||
| Cash taxes and other income3 | (3 | ) | (26 | ) | (89 | ) | (51 | ) | |||||||
| Distributable Earnings2 | $ | 563 | $ | 491 | $ | 2,167 | $ | 1,961 | |||||||
| Fee-related earnings per share | $ | 0.33 | $ | 0.30 | $ | 1.32 | $ | 1.18 | |||||||
| Distributable earnings per share | $ | 0.34 | $ | 0.30 | $ | 1.33 | $ | 1.20 | |||||||
| Net income attributable to |
$ | 516 | $ | 348 | $ | 2,083 | $ | 1,790 | |||||||
See endnotes
Brookfield Asset Management’s distributable earnings were
Operating Highlights
We raised nearly $100 billion of capital over the last twelve months. Fee-bearing capital was
Year to date, we have raised
In January, we launched fundraising for our fifth flagship real estate fund (“BSREP V”), with the objective of deploying capital into a market that should provide significant opportunities to generate attractive risk-adjusted returns.
In February, we launched
Subsequent to quarter-end, we launched fundraising for the second vintage of our flagship
The above increases in fee-bearing capital contributed to a 22% increase in fee-related earnings over the last twelve months, excluding performance fees.
Fee-related earnings were
We invested
We continue to source attractive investment opportunities across the business, leveraging our global reach, operational expertise and access to scale capital. Year to date, we have committed to the following marquee investments:
-
Our renewable power and transition business, along with a consortium of investors, committed to acquire Origin Energy at an enterprise value of over
$12 billion in a public to private transaction. The transaction enables us to deploy our full-lifecycle renewable development capabilities to decarbonize and transition a large energy market inAustralia , in-line with the Brookfield Global Transition Fund’s mandate of generating attractive current yields while accelerating the global transition to net zero. -
Our infrastructure business signed an agreement to acquire Data4, a premier hyperscale data center platform in
Europe , with operations inFrance ,Italy ,Spain ,Poland andGermany . The transaction will require an equity investment of approximately$2.4 billion . Data4 has a backlog of contracted growth over the next five years, an existing revenue base that is 80% contracted with investment-grade hyperscalers, and enables us to expand our global data center footprint. With existing greenfield development platforms inNorth and South America ,Australia ,New Zealand ,India andKorea , this expansion toEurope supports our long-term strategy to invest in the digitalization of the global economy. -
Our infrastructure business signed an agreement to acquire Triton International, the world’s largest owner and lessor of intermodal containers, for a total enterprise value of over
$13 billion in a public to private transaction which requires an equity commitment of approximately$4.7 billion . Approximately 90% of Triton’s fleet is under long-term contract, which will enable us to generate an attractive risk-adjusted return, while offering a platform for growth. As a critical provider of global transport logistics, this transaction supports our long-term strategy of investing in the backbone of the global economy.
As at
Total investable capital includes approximately
Strategic Initiatives
We acquired an additional interest in the fee-related earnings of our partially owned private credit business for cash consideration of
Regular Dividend Declaration & Establishment of Dividend Reinvestment Program
The board of directors of
| End Notes |
- Reflects full period results unless otherwise noted on a 100% basis for
Brookfield Asset Management , being Brookfield Asset Management ULC and its subsidiaries, including its share of the asset management activities of partly owned subsidiaries.
- See Reconciliation of Net Income to Fee-Related Earnings and Distributable Earnings on page 6 and Non-GAAP and Performance Measures section on page 8.
- Cash taxes and other income includes
Brookfield Asset Management's portion of partly owned subsidiaries investment income, realized carried interest, and other income.
Statement of Financial Position
| Unaudited (US$ millions) |
||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Cash and cash equivalents | $ | 12 | $ | 1 | ||
| Investments | 2,374 | 2,378 | ||||
| Due from affiliates | 875 | 782 | ||||
| Other assets | 41 | — | ||||
| Total Assets | $ | 3,302 | $ | 3,161 | ||
| Liabilities | ||||||
| Accounts payable and other | $ | 873 | $ | 781 | ||
| Due to affiliates | 100 | 3 | ||||
| Total Liabilities | 973 | 784 | ||||
| Equity | ||||||
| Total Equity | 2,329 | 2,377 | ||||
| Total Liabilities and Equity | $ | 3,302 | $ | 3,161 | ||
Statement of Operating Results
| Unaudited For the period ended (US$ millions, except per share amounts) |
Three Months Ended | ||
| 2023 | |||
| Equity accounted income | $ | 129 | |
| Compensation and other expenses | (4 | ) | |
| Net income | $ | 125 | |
| Net income per share of common stock | |||
| Diluted | $ | 0.31 | |
| Basic | 0.31 | ||
Statement of Financial Position
| Unaudited (US$ millions) |
||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Cash and cash equivalents | $ | 3,152 | $ | 3,545 | ||
| Accounts receivable and other | 564 | 429 | ||||
| Investments | 6,976 | 6,877 | ||||
| Due from affiliates | 2,157 | 2,121 | ||||
| Deferred income tax assets and other assets | 1,124 | 1,115 | ||||
| Total assets | $ | 13,973 | $ | 14,087 | ||
| Liabilities | ||||||
| Accounts payable and other | $ | 1,815 | $ | 1,842 | ||
| Due to affiliates | 615 | 811 | ||||
| Deferred income tax liabilities and other | 1,882 | 1,828 | ||||
| 4,312 | 4,481 | |||||
| Equity | ||||||
| Total equity | 9,661 | 9,606 | ||||
| Total liabilities, and common equity | $ | 13,973 | $ | 14,087 | ||
Note: Reflects balances on a 100% basis for our asset management business, being
Statement of Operating Results
| Unaudited For the periods ended (US$ millions, except per share amounts) |
Three Months Ended | ||||||
| 2023 | 2022 | ||||||
| Revenues | |||||||
| Incentive distribution and management fee revenues | $ | 791 | $ | 671 | |||
| Carried interest income net of amounts attributable to Corporation | 44 | — | |||||
| Other revenue | 131 | 84 | |||||
| Total revenues | 966 | 755 | |||||
| Expenses | |||||||
| Compensation, operating, and general and administrative expenses | (376 | ) | (260 | ) | |||
| Interest expense | (2 | ) | (42 | ) | |||
| Total expenses | (378 | ) | (302 | ) | |||
| Other income, net | (22 | ) | 344 | ||||
| Share of income from equity accounted investments | 43 | 68 | |||||
| Income before taxes | 609 | 865 | |||||
| Income tax expense | (93 | ) | (142 | ) | |||
| Net income | $ | 516 | $ | 723 | |||
| Net income attributable to: | |||||||
|
|
$ | 516 | $ | 348 | |||
| Brookfield Corporation | — | 375 | |||||
| 516 | 723 | ||||||
| Net income per share | |||||||
| Diluted | $ | 0.32 | $ | 0.21 | |||
| Basic | $ | 0.32 | $ | 0.21 | |||
Note: Reflects results on a 100% basis for our asset management business, being
SELECT FINANCIAL INFORMATION
RECONCILIATION OF NET INCOME TO FEE-RELATED EARNINGS AND DISTRIBUTABLE EARNINGS
| Unaudited For the periods ended (US$ millions) |
Three Months Ended | ||||||
| 2023 | 2022 | ||||||
| Net income | $ | 516 | $ | 723 | |||
| Add or subtract the following: | |||||||
| Provision for taxes1 | 93 | 142 | |||||
| Depreciation, amortization and other2 | 4 | 3 | |||||
| Carried interest allocations3 | (59 | ) | 1 | ||||
| Carried interest allocation compensation3 | 88 | 113 | |||||
| Other income and expenses4 | 22 | (457 | ) | ||||
| Interest expense paid to related parties4 | — | 42 | |||||
| Interest and dividend revenue4 | (43 | ) | (67 | ) | |||
| Other revenues5 | (161 | ) | (18 | ) | |||
| Share of income from equity accounted investments6 | (43 | ) | (68 | ) | |||
| Fee-related earnings of partly owned subsidiaries at our share6 | 56 | 59 | |||||
| Compensation costs recovered from affiliates7 | 74 | — | |||||
| Fee revenues from consolidated funds & Other8 | — | 19 | |||||
| Fee-related earnings | 547 | 492 | |||||
| Cash Taxes and other Income9 | (3 | ) | (26 | ) | |||
| Add back: equity-based compensation costs10 | 19 | 25 | |||||
| Distributable earnings | $ | 563 | $ | 491 | |||
-
This adjustment removes the impact of income tax provisions (benefit) on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over the long-term due to the substantial deferred tax assets of our asset management business.
-
This adjustment removes the depreciation and amortization on property, plant and equipment and intangible assets, which are non-cash in nature and therefore excluded from Fee-Related Earnings.
-
These adjustments remove unrealized carried interest allocations and the associated compensation expense, which are excluded from Fee-Related Earnings as these items are unrealized in nature.
-
These adjustments remove other income and expenses associated with non-cash fair value changes and remove interest and charges paid or received related to intercompany or related party loans.
-
This adjustment adds back other revenues earned that are non-cash in nature.
-
These adjustments remove our share of partly owned subsidiaries’ earnings, including items 1) to 5) above and include its share of partly owned subsidiaries’ Fee-Related Earnings.
-
This item adds back compensation costs that will be born by affiliates and are non-cash in nature.
-
This adjustment adds base management fees earned from funds that were historically eliminated upon consolidation.
-
Represents the impact of cash taxes paid by the business and other income associated with the Company's portion of partly owned subsidiaries’ investment income, realized carried interest and other income and other items.
-
This adjustment adds back equity-based compensation.
Additional Information
The Letter to Shareholders and the Supplemental Information for the three months and twelve months ended
The statements contained herein are based primarily on information that has been extracted from our financial statements for the quarter ended
BAM’s Board of Directors have reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.
Information on our dividends can be found on our website under Stock & Distributions/Distribution History.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access BAM’s First Quarter 2023 Results as well as the Shareholders’ Letter and Supplemental Information on its website under the Reports & Filings section at bam.brookfield.com.
To participate in the Conference Call today at
The Conference Call will also be webcast live at https://edge.media-server.com/mmc/go/bamQ1-2023. For those unable to participate in the Conference Call, the telephone replay will be archived and available until
About
Please note that Brookfield Asset Management Ltd.’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR and can also be found in the investor section of its website at bam.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please visit our website at bam.brookfield.com or contact:
| Communications & Media: Tel: (212) 618-3469 Email: [email protected] |
Investor Relations: Tel: (866) 989-0311 Email: [email protected] |
Non-GAAP and Performance Measures
This news release and accompanying financial information are based on generally accepted accounting principles in
We make reference to Distributable Earnings (“DE”), which is referring to the sum of its fee-related earnings, realized carried interest, realized principal investments, interest expense, and general and administrative expenses; excluding equity-based compensation costs and depreciation and amortization. The most directly comparable measure disclosed in the primary financial statements of our asset management business for distributable earnings is net income. This provides insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.
We use FRE and DE to assess our operating results and the value of Brookfield’s business and believe that many shareholders and analysts also find these measures of value to them.
We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with US GAAP. These financial measures, which include FRE and DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with US GAAP. We caution readers that these non-GAAP financial measures or other financial metrics are not standardized under US GAAP and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.
We provide additional information on key terms and non-GAAP measures in our filings available at bam.brookfield.com.
Notice to Readers
In addition to historical information, this news release contains “forward-looking statements” within the meaning of applicable
Our forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us or within our control. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Several factors could cause our actual results to vary from our forward-looking statements, including, among others: our lack of independent means of generating revenue; our material assets consisting solely of our interest in Brookfield Asset Management ULC; challenges relating to maintaining our relationship with Brookfield Corporation and potential conflicts of interest;
We caution that the factors that may affect future results listed above are not exhaustive. The forward-looking information represents our views as of the date of this news release and should not be relied upon as representing our views as of any date subsequent to the date of this news release. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the forward-looking statements, other than as required by applicable law.
These statements and other forward-looking information are based on opinions, assumptions and estimates made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Accordingly, readers should not place undue reliance on forward-looking information. We do not undertake to update any forward-looking information contained herein, except as required by applicable securities laws.
Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to the historic investments discussed herein (because of economic conditions, the availability of investment opportunities or otherwise), that targeted returns, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved.
Target returns set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by
Certain of the information contained herein is based on or derived from information provided by independent third-party sources. While
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