10-K: Brookfield Asset Management Reports Strong 2025 Growth

Brookfield Asset Management Ltd. reported significant growth in Fee-Bearing Capital and Distributable Earnings for 2025, driven by strong fundraising and strategic investments in AI infrastructure and private credit.

Summary

• Assets Under Management (AUM) exceeded $1 trillion as of December 31, 2025.
• Fee-Bearing Capital increased by $64 billion, or 12%, to $603 billion in 2025, with 87% being long-dated or perpetual in nature.
• Total fundraising in 2025 was over $110 billion, including over $10 billion for the second vintage of the global transition fund and the fifth real estate flagship fund, $31.6 billion across the Oaktree franchise, $6.6 billion from other partner managers, $3.3 billion for the fourth vintage of the infrastructure debt fund, and $25.2 billion from Brookfield Wealth Solutions (BWS).
• Capital deployed across strategies in 2025 totaled $65.6 billion, with $36.3 billion in credit, $10.9 billion in infrastructure, $7.5 billion in real estate, $6.9 billion in renewable power and transition, and $4.0 billion in private equity.
• Fee Revenues for 2025 were $5.5 billion, a 17% increase compared to 2024.
• Fee-Related Earnings reached $3.0 billion in 2025, up 22% from 2024.
• Distributable Earnings for 2025 were $2.7 billion, representing a 14% increase over 2024.
• Net income attributable to common stockholders was $2.5 billion in 2025, an increase of $317 million from 2024.
• Uncalled private fund commitments stood at $134 billion as of December 31, 2025, with approximately $63 billion currently not earning fees but expected to generate $630 million in additional Fee Revenues once invested.
• A quarterly dividend of $0.5025 per share was declared, representing a 15% increase relative to the prior year, payable on March 31, 2026.
• A proposed transaction to acquire the remaining 26% interest in Oaktree for approximately $3 billion is expected to close in the first half of 2026.
• Launched a $100 billion global AI Infrastructure program in partnership with NVIDIA and the Kuwait Investment Authority (KIA), anchoring the Brookfield AI Infrastructure Fund (BAIIF) with a target of $10 billion in equity commitments, of which $5 billion has already been received.
• Announced a $20 billion joint venture with Qai, Qatar's AI company, focused on AI infrastructure in Qatar and select international markets.
• Completed inaugural offerings of $750 million 5.795% senior notes due 2035, $750 million 6.077% senior notes due 2055, $600 million 4.653% senior notes due 2030, and $400 million 5.298% senior notes due 2036.
• The revolving credit facility was upsized from $750 million to $1.1 billion.
• A share repurchase program was approved on January 9, 2026, to purchase up to 36.9 million Class A Shares, representing approximately 10% of the public float.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, demonstrating strong financial performance across key metrics, successful fundraising, and aggressive strategic expansion into high-growth areas like AI infrastructure and private credit, which should drive future earnings.

Positives

• Fee-Bearing Capital increased by 12% to $603 billion, indicating strong asset growth and future revenue potential.
• Total fundraising exceeded $110 billion in 2025, demonstrating robust investor confidence and demand for investment products.
• Fee Revenues grew by 17% to $5.5 billion, reflecting effective asset management and increased fee-generating assets.
• Fee-Related Earnings surged by 22% to $3.0 billion, highlighting improved operating profitability.
• Distributable Earnings increased by 14% to $2.7 billion, supporting a higher dividend payout.
• Net income attributable to common stockholders rose by $317 million to $2.5 billion, indicating strong bottom-line performance.
• The quarterly dividend was increased by 15% to $0.5025 per share, signaling confidence in future earnings and commitment to shareholder returns.
• Strategic expansion into AI infrastructure with major partnerships (NVIDIA, KIA, Qai) and multi-billion dollar programs positions the company in a high-growth sector.
• The proposed acquisition of the remaining 26% interest in Oaktree is expected to be accretive and further strengthens the market-leading credit platform.
• A high proportion (87%) of Fee-Bearing Capital is long-dated or perpetual, providing significant stability and predictability to future earnings.
• Substantial uncalled private fund commitments of $134 billion, with $63 billion expected to become fee-bearing, represent a strong pipeline for future Fee Revenues.
• Successful debt offerings diversified the company's capital structure and provided liquidity for strategic investments.
• Maintained effective internal control over financial reporting, as affirmed by management and external auditors.

Negatives

• Realized carried interest allocations were $nil in 2025, a decrease of $25 million compared to 2024, indicating fewer profitable exits from mature funds.
• Interest and dividend revenue decreased by $45 million, primarily due to lower interest income earned on deposits with Brookfield Corporation (BN).
• Compensation and benefits expenses increased by $219 million, partially driven by higher share-based compensation.
• Carried interest allocation compensation increased by $53 million, reflecting higher performance-based payouts.
• Interest expense rose by $65 million due to increased corporate borrowings from senior note offerings.
• Other expenses, net, increased by $204 million, primarily due to a mark-to-market loss of $180 million on the investment in BSREP III, compared to an $82 million loss in the prior year.
• Income tax expense increased by $89 million, predominantly due to the impairment of deferred tax assets.
• Net loss attributable to preferred redeemable non-controlling interest was $480 million, mainly due to lower valuations in certain mature real estate funds.
• Private equity Segment Earnings decreased by $40 million, attributed to lower management fees from flagship funds due to monetizations and distributions, and higher segment expenses.

Risks

• Volatility in the trading price of the Class A Shares due to market conditions and other factors.
• Deficiencies in public company financial reporting and disclosures could adversely impact reputation and financial condition.
• Difficulty for investors to effect service of process and enforce judgments against the company, its directors, and executive officers in various jurisdictions.
• Subject to numerous laws, rules, and regulatory requirements, which may result in financial penalties, loss of business, and/or damage to reputation in instances of non-compliance.
• Potential ineffectiveness of policies to prevent violations of applicable law, including anti-bribery, corruption, and trade sanctions laws.
• Foreign currency risk and exchange rate fluctuations could adversely impact aggregate foreign currency exposure, and hedging strategies may not be effective.
• Further increases in interest rates could increase interest costs and adversely affect financial performance by decreasing asset values and increasing debt servicing costs.
• Political instability, changes in government policy, or unfamiliar cultural factors could adversely impact the value of investments, especially in international markets.
• Unfavorable economic conditions or changes in the industries in which the company operates could adversely impact financial performance, including reduced demand and increased price competition.
• Inflationary pressures could adversely impact businesses by increasing operating costs and affecting the ability to source suitable investment opportunities.
• Catastrophic events (e.g., earthquakes, hurricanes, pandemics/epidemics, climate change, military conflict, terrorism) could adversely impact operations and financial performance.
• Ineffective management of environmental and sustainability issues, and inadequate or ineffective health and safety programs could damage reputation and lead to regulatory action.
• Failure to maintain the security of information and technology systems, including cybersecurity threats and attacks, could have a material adverse effect.
• Failure to adopt AI effectively or inappropriate use of AI by employees or third parties could lead to competitive disadvantage, inaccurate outputs, or reputational harm.
• Involvement in legal disputes in the U.S. and internationally could adversely impact financial performance and reputation.
• Losses not covered by insurance may be large, which could adversely impact Assets Under Management.
• Inability to collect on amounts owing, including investor defaults on capital commitment obligations, could adversely impact financial performance.
• Operating and financial restrictions through covenants in loan, debt, and security agreements could limit flexibility and growth opportunities.
• Actions or conduct that negatively impact investor or stakeholder perception could adversely impact the ability to attract and/or retain investor capital and generate fee revenue.
• Risks specific to infrastructure strategies, including government regulation, general economic conditions, counterparty performance, and capital expenditure requirements.
• Risks specific to renewable power and transition strategies, including weather dependency, equipment failure, re-contracting risk, and new sustainability regulations.
• Risks specific to private equity strategies, including potential loss of invested capital, cyclicality, illiquidity, and increased liabilities from consumer-facing businesses.
• Risks specific to real estate strategies, including changes in general economic conditions, local market conditions, tenant bankruptcies, and susceptibility to contagious diseases.
• Risks specific to credit strategies, including cyclicality, poor product development, and lower investment returns due to inappropriate capital allocation or ineffective management.
• Exposure to risks associated with acquisitions, including integration difficulties, undisclosed liabilities, and execution failures.
• Requirement of temporary investments and backstop commitments that may be difficult to syndicate, assign, or transfer.
• Revenues may be adversely affected by a decline in the size or pace of investments made by managed assets.
• Revenue, earnings, net income, and cash flow can materially vary from quarter to quarter, affecting earnings growth and dividend.
• Access to retail investors and selling retail-directed products in numerous jurisdictions exposes the company to potential litigation and regulatory enforcement risks.
• Information barriers may give rise to certain conflicts and risks, and investment teams managing activities on opposite sides of a barrier may not be aware of such conflicts.
• Brookfield Corporation (BN) exercises substantial influence over BAM, potentially leading to conflicts of interest.
• The ownership of BN may change, and the control of BAM may be transferred to a third party without shareholder approval.
• Ineffective maintenance of company culture or ineffective management of human capital could adversely impact business and financial performance, including the loss of key personnel.
• If BAM is classified as a passive foreign investment company (PFIC), U.S. persons who own Class A Shares could be subject to adverse U.S. federal income tax consequences.
• Changes in Canadian federal income tax law might adversely affect BAM and/or holders of Class A Shares.
• Reassessments by tax authorities or changes in tax laws could create additional tax costs for the company.

Future Outlook

Brookfield Asset Management expects to continue advancing its substantial pipeline of renewable power and transition opportunities. The proposed acquisition of the remaining 26% interest in Oaktree is anticipated to close in the first half of 2026 and is expected to be accretive to both BAM and BN. The $63 billion of uncalled private fund commitments are expected to generate an additional $630 million in Fee Revenues once invested. The company's multi-billion dollar AI infrastructure initiatives in France, Sweden, and globally with NVIDIA and KIA, as well as the Qatar joint venture, are projected to be delivered by 2030. The company intends to pay out at least approximately 90% of its Distributable Earnings to shareholders quarterly and reinvest the balance, with dividends expected to be variable and change in line with the growth of Distributable Earnings.

Management Comments

• "Our business is well-positioned within the evolving alternative asset management landscape by leveraging a strategic and agile approach to investment opportunities."
• "As investors seek diversification and innovative solutions, we are equipped to navigate market complexities and government policies by delivering value through disciplined strategies."
• "Our ability to adapt to shifting economic conditions and capitalize on emerging trends ensures we remain a trusted partner in achieving long-term financial outcomes."
• "Our disciplined investment approach and strong track record have been the foundation and driver of our growth."
• "We draw on Brookfields heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles."
• "These new initiatives, in addition to our existing strategies, are expected to have a very meaningful impact on our growth trajectory in the long term."
• "Our emphasis on a culture of collaboration allows us to attract and retain top talent."
• "Our long-term approach to our business influences everything we do, including how we make investment decisions, how we support and oversee our businesses, and how we develop our people and compensate them."

Industry Context

StockSavvy.ai notes that Brookfield Asset Management's aggressive expansion into AI infrastructure, with multi-billion dollar programs in France, Sweden, and Qatar, positions it at the forefront of a rapidly growing sector driven by increasing global demand for scalable, integrated solutions from hyperscalers, enterprises, and governments. This move aligns with broader industry trends of alternative asset managers seeking new, high-growth thematic investment opportunities beyond traditional real assets. The proposed full acquisition of Oaktree further solidifies its market-leading position in credit, a strategy that provides diversification across market cycles and complements its direct investment capabilities. The launch of semi-liquid funds like BPE also reflects a trend among alternative asset managers to broaden access to private markets for individual and private wealth investors.

Comparison to Industry Standards

• Brookfield's AUM of over $1 trillion places it among the largest global alternative asset managers, comparable to industry leaders like Blackstone, KKR, and Apollo Global Management.
• The 12% increase in Fee-Bearing Capital to $603 billion in 2025 demonstrates strong organic growth, outpacing many peers who might see single-digit growth in a competitive fundraising environment.
• The 22% growth in Fee-Related Earnings to $3.0 billion and 14% growth in Distributable Earnings to $2.7 billion indicate superior operating leverage and profitability compared to some diversified financial services firms.
• The strategic partnerships with NVIDIA and Kuwait Investment Authority for a $100 billion global AI Infrastructure program, and a $20 billion joint venture with Qai in Qatar, are significant in scale and ambition, potentially setting a new benchmark for large-scale thematic infrastructure investment in emerging technologies.
• The final close of Oaktree Opportunities Fund XII with approximately $16 billion in commitments is a strong performance for a distressed credit fund, reflecting Oaktree's established reputation in opportunistic credit strategies, comparable to top-tier distressed debt funds.
• The $20 billion close for BGTF II, along with $3.5 billion in co-investment, totaling $23.5 billion, highlights strong investor demand for transition and clean energy assets, positioning Brookfield as a leader in the global energy transition space, comparable to dedicated climate funds from TPG Rise Climate or BlackRock's Global Energy Transition funds.

Management Changes

Corporate Governance

Legal Proceedings

• No material outstanding litigation or regulatory proceedings as of December 31, 2025 and 2024.
• The company accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.
• Based on information known by management, there is no potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect the company's results of operations, balance sheet, or cash flows.

Related Party Transactions

• Brookfield Corporation (BN), directly or through its subsidiaries, has the right (but not the obligation) to participate up to 25% in each new sponsored fund or other entity of the asset management business.
• BN retains 100% of the carried interest earned on mature funds and is entitled to 33.3% of the carried interest on new sponsored funds and similar distributions in open-end funds.
• BAM and the Asset Management Company provide services to BN's perpetual affiliates (Brookfield Renewable Partners L.P., Brookfield Infrastructure Partners L.P., Brookfield Business Partners L.P., and Brookfield Property Group) and are bound by existing governance and management agreements.
• BN's CEO and another senior management nominee from BN serve on the investment committees for each of BAM's strategies.
• BAM's asset management business is supported by Brookfield's operating capabilities, including its approximately 250,000 operating employees, on commercial terms.
• Customary office sharing arrangements have been entered into among BN, BAM, and other affiliates.
• BN is indemnified for certain claims, liabilities, losses, damages, costs, or expenses arising from Affiliate Relationship Agreements or Master Services Agreements, to the extent resulting from BAM's bad faith, fraud, willful misconduct, or gross negligence.
• The Asset Management Company has a $300 million revolving credit facility with BN as lender, which was undrawn as of December 31, 2025.
• As of December 21, 2025, $1.1 billion of BAM's cash was on deposit with BN.
• A Tax Matters Agreement governs the respective rights, responsibilities, and obligations with respect to tax liabilities between BN, BAM, and the Asset Management Company.
• A Trademark Sublicense Agreement grants BAM a non-exclusive, royalty-free license to use the Brookfield name and logo, terminable under certain conditions (e.g., BN ceasing to own at least 25% of the common shares of the asset management business).
• An Arrangement Agreement was entered into on October 31, 2024, between BAM and BN for the 2025 Arrangement.
• During 2025, BAM assigned a $117 million loan to a related party at market terms.
• BAM recognized tax attributes purchased from a related party of $136 million in 2025.
• BAM warehoused an investment of $103 million for Brookfield-managed funds, which was subsequently settled for $105 million from co-investors.
• On December 22, 2025, BAM acquired certain limited partner units from BN and Brookfield Finance Inc. (BFI) for $94 million in redeemable preferred shares.
• Accounts payable include $116 million under a tax receivable agreement with Oaktree as of December 31, 2025.
• Lease liabilities include $46 million associated with related parties as of December 31, 2025.

Stakeholder Impact

• Shareholders are positively impacted by strong financial performance, increased dividends, and a share repurchase program, indicating a commitment to returning capital and long-term value creation.
• Employees benefit from compensation programs emphasizing long-term incentives and a culture of collaboration, with strategic management changes reflecting internal talent development.
• Clients and investors gain from expanded product offerings, particularly in high-demand areas like AI infrastructure and private credit, and deepened capabilities through strategic acquisitions like Angel Oak and the proposed full acquisition of Oaktree.
• Regulatory bodies are assured by the company's adherence to extensive and increasing regulatory compliance obligations and the maintenance of effective internal controls over financial reporting.
• Strategic partners such as NVIDIA, Kuwait Investment Authority, and Qai are engaged in significant joint ventures, fostering collaborative growth and shared investment in emerging technologies like AI infrastructure.

Next Steps

• The proposed Oaktree acquisition is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions.
• A share repurchase program to purchase up to 36.9 million Class A Shares commenced on January 13, 2026, and is set to expire on January 12, 2027.
• A quarterly dividend of $0.5025 per share is payable on March 31, 2026.
• The €20 billion AI infrastructure investment program in France is projected to be delivered by 2030.
• The $10 billion AI infrastructure investment in Sweden is ongoing.
• The $100 billion global AI Infrastructure program with NVIDIA and KIA will continue to deploy investment across the value chain.
• The $20 billion joint venture focused on AI infrastructure in Qatar will continue to develop fully integrated AI facilities.
• The company intends to pay out at least approximately 90% of Distributable Earnings to shareholders quarterly and reinvest the balance.

Key Dates

Recommendation

Brookfield Asset Management's 2025 performance demonstrates robust growth across all key financial metrics, including Fee-Bearing Capital, Fee Revenues, Fee-Related Earnings, and Distributable Earnings, significantly exceeding prior year results. The substantial increase in dividend, coupled with an active share repurchase program, signals strong confidence from management and a commitment to shareholder returns. Strategic initiatives in high-growth sectors like AI infrastructure, backed by major partnerships and significant capital commitments, position the company for substantial long-term value creation. The proposed full acquisition of Oaktree further strengthens its credit platform, enhancing diversification and market leadership. Despite some increases in expenses and a mark-to-market loss on a specific fund, the overall trajectory and strategic positioning warrant a strong buy recommendation for long-term investors.

Keywords

Alternative Asset Management, Infrastructure, Renewable Power, Private Equity, Real Estate, Credit, AI Infrastructure, Fundraising, Fee-Bearing Capital, Distributable Earnings, Oaktree, SEC Filing, 10-K, Investment Management, Corporate Governance, Risk Management, Share Repurchase, Dividend, ESG