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Brookfield Asset Management Ltd. (NYSE:BAM), now a pure-play asset manager, reported on Wednesday Q4 earnings that exceeded the Wall Street consensus as fee-related earnings growth accelerated and the newly public asset manager raised $93B of capital in 2022. BAM shares rose 2.8% in premarket trading.
Q4 distributable EPS of $0.35, surpassing the $0.32 consensus, increased from $0.33 in the year-ago quarter.
Fee-related earnings, excluding performance fees, climbed to $576M from $456M in the year-ago quarter. FRE growth accelerated to 26% in Q4 2022 from 15% growth in Q4 2021.
Margin of 60% widened from 58% in the year-ago quarter.
The quarter marks the company's first as a publicly traded company. On Dec. 12, Brookfield Asset Management Inc. spun off a 25% stake in its asset management business under the name Brookfield Asset Management Ltd. Brookfield Asset Management Inc. then renamed itself Brookfield Corp. and changed its trading symbol to "BN" from "BAM."
"Our asset management business delivered strong performance in the fourth quarter, finishing the year with record capital raised of $93B, driving $2.1B of annual distributable earnings," President Connor Teskey said.
In 2023, he expects strong growth in fee-related earnings, helped by full-year contribution from the company's latest flagship funds, as well as two of its follow-on flagship funds expected to be in the market soon.
Total assets under management were $790B at Dec. 31, 2022, up 15% from a year ago.
Fee-bearing capital was $418B at the end of the year, up $11B during the quarter.
During the quarter, Brookfield Asset Management (BAM) held additional closings on its fifth flagship infrastructure fund, now standing at $22B, and its sixth flagship private equity fund, now standing at $9B. It expects final closes on both funds in coming months. In November, BAM launched fundraising for its twelfth opportunistic credit flagship fund and expects a first close soon.
In February, the company launched fundraising for its fifthe real estate flagship fund and expects a first closing in coming months.
Q4 compensation, operating, and general and administrative expenses were $205M, down from $271M in the year-ago quarter.
Conference call at 10:00 AM ET.
Earlier, Brookfield Asset Management (BAM) distributable earnings of $0.35 beats by $0.03, revenue of $958M misses by $92M