- Distributable Earnings of $2.1 billion for the Year
- Raised a Record $93 billion of Capital in 2022
Brookfield Asset Management Ltd. announced financial results for the quarter ended December 31, 2022.
Connor Teskey, President, stated, “We are pleased to announce our first quarterly results as a public company. Our asset management business delivered strong performance in the fourth quarter, finishing the year with record capital raised of $93 billion, driving $2.1 billion of annual distributable earnings. As we head into 2023, we expect strong growth in fee-related earnings, benefiting from a full year contribution from our latest flagship funds, along with two of our follow-on flagship funds expected to be in the market soon. Our complementary strategies continue to attract significant capital, and we are confident we will see attractive investment opportunities this year across the risk and return spectrum.”
Operating Results
Brookfield Asset Management Ltd.
Net income for Brookfield Asset Management Ltd. totaled $19 million for the quarter and $19 million for the year. Net income for Brookfield Asset Management Ltd. reflects results for 25% of the asset management business from the period December 9, 2022, when Brookfield Asset Management Ltd. acquired its share of the asset management business, until December 31, 2022.
In order to provide meaningful comparative information, the following discussion relates to full year results on a 100% basis for our asset management business. For clarity, Brookfield Asset Management Ltd. owns 25% of this business and 75% is owned by Brookfield Corporation.
Brookfield Asset Management1
Distributable earnings for our asset management business were $569 million for the quarter and $2.1 billion for the year. Fee-related earnings made up approximately 100% of distributable earnings for both the quarter and the year. Record fundraising levels and strong capital deployment activities drove fee-related earnings of $2.1 billion, representing an increase of 26% compared to the prior year quarter, excluding performance fees.
Operating Highlights
We raised a record $93 billion of capital last year. Fee-bearing capital was $418 billion at the end of the year, an increase of approximately $11 billion during the quarter and $54 billion or 15% over the past year.
During the quarter, we held additional closes for our fifth flagship infrastructure fund and our sixth flagship private equity fund which now stand at approximately $22 billion and $9 billion, respectively. We expect final closes for both funds in the coming months. In November, we launched fundraising for our twelfth opportunistic credit flagship fund and expect a first close very soon. In February of this year, we launched fundraising for our fifth real estate flagship fund and should have a first close in the coming months. Our transition fund continues to find a significant amount of investment opportunities and is already over 50% invested or committed.
Over the year, we raised $12 billion of capital across a variety of perpetual funds, including our supercore perpetual infrastructure fund and our perpetual real estate funds. We also held a subsequent close for our third infrastructure debt fund, which now stands at nearly $4 billion. In addition, we raised $6 billion of co-investment capital across our long-term private funds, giving our investors the flexibility to receive additional exposure to certain investments alongside our private funds.
The above increases in fee-bearing capital contributed to a 26% increase in fee-related earnings over the last twelve months, excluding performance fees.
Fee-related earnings were $576 million for the quarter and $2.1 billion for the year. We have approximately $40 billion of additional committed but un-invested capital across our strategies that will earn approximately $400 million of fees annually once deployed.
Fee-related earnings margins before performance fees, at our share were 60% for the quarter and 58% for the year. This represented a 2% increase for both the quarter, and the year, compared to the prior year periods.
The increase in margins over the quarter and the year was driven by the scaling of our flagship funds and benefit of capital deployed across new strategies during the year.
We invested and/or committed $81 billion of capital to new investments during the year.
Notable acquisitions include the closing of our infrastructure business’ partnership with Intel to fund half of a $30 billion investment in a semi-conductor facility being built in Arizona; our private equity business closed the acquisition of Nielsen, a leading audience measurement business, for $16 billion this quarter; and our renewable power and transition business entered into an $8 billion partnership agreement with Cameco to own Westinghouse. We continue to find opportunities to invest at large-scale for value, resulting in swift deployment of our capital within our current funds, accelerating our plans to launch new vintages.
As at December 31, 2022, we had $91 billion of capital available to deploy into new investments.
Total investable capital includes approximately $3.2 billion of cash, financial assets and undrawn lines of credit, as well as $87 billion of uncalled fund commitments. We have zero debt and $300 million on undrawn credit facilities. We established our normal course issuer bid in January, allowing us to repurchase shares opportunistically as necessary.
Strategic Initiatives
On December 12, 2022, we successfully completed the listing of 25% of our asset management business and began trading on the New York Stock Exchange and Toronto Stock Exchange under the ticker symbol “BAM”, giving investors access to one of the world’s largest and most diversified, pure-play alternative asset managers.
Regular Dividend Declaration & Establishment of Dividend Reinvestment Program
The Board of Brookfield Asset Management Ltd. declared a quarterly dividend of US$0.32 per share, payable on March 31, 2023 to shareholders of record as at the close of business on February 28, 2023. This dividend rate was announced on December 6, 2022.
Brookfield Asset Management Ltd. recently established a dividend reinvestment program, allowing investors to elect to automatically reinvest their dividends into shares.
