Brookfield raises US$29b in 4Q with credit focus and green bets
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The news: Brookfield Asset Management raised USD29 billion ($46.41 billion) in the fourth quarter of 2024, with its credit business now the largest driver of growth.
The numbers: Its credit arm became its largest asset source, collecting USD20 billion, with USD9.2 billion from Oaktree funds and USD6.6 billion from insurance clients.
It’s renewable division secured USD3.5 billion for its global transition fund, and its flagship real estate fund raised about USD500 million.
Distributable earnings rose 11% to USD649 million, or 40 cents per share, slightly surpassing analyst forecasts.
Total fee-bearing capital reached USD539 billion, an 18% increase from the previous year. Fourth-quarter fee-related earnings hit a record USD688 million, up 17% year-over-year.
The context: Brookfield has been expanding its credit operations, consolidating them under a single platform that includes partnerships with Oaktree Capital Management, European credit manager LCM Partners, Primary Wave, Castlelake LP, and 17Capital.
The private credit focus is part of a broader trend among alternative asset managers, such as Blackstone and Apollo, which have made credit a central part of their businesses.
Brookfield, one of the world’s largest owners of renewable power, is also looking for bargains in the solar and wind sector, betting that investor concerns over Donald Trump’s anti-green policies are overdone.
“The [difference] between public market valuations and private market valuations in this space is very large right now [meaning] we expect there will be investment opportunities [among listed companies],” president Connor Teskey told the Financial Times in an interview.
“With the current position of the public markets we’re certainly monitoring a few things,” he added.
Brookfield, which earlier this month moved its headquarters from Toronto to New York to expand its shareholder base and seek inclusion in the S&P 500, also raised its quarterly dividend by 15%.
The firm deployed USD16 billion in Q4 and USD48 billion across 2024, including acquiring Neoen and UK wind farms from Ørsted.
The sources: Brookfield release, Financial Times
