Brookfield Asset Management Ltd. BAM-T reported an 11-per-cent increase in profits from fees and raised US$21-billion in the first quarter, emphasizing its ownership of hard assets such as real estate and infrastructure as bulwarks in unsteady markets.
The asset manager’s fee-related earnings rose to US$772-million, or 48 US cents per share, compared with the same quarter last year.
Brookfield also reported US$702-million of distributable earnings, which are a measure asset managers use as a proxy for cash earnings that could be paid to shareholders. That was up 7 per cent year over year, and amounted to 43 US cents per share.
Profit was US$617-million, or 38 US cents per share, compared with US$581-million, or 36 US cents a share a year ago.
“Our leading positions in infrastructure, energy, real estate, and essential services-focused private equity are well suited to this environment,” chief executive officer Connor Teskey said in a statement.
Bruce Flatt, CEO of parent company Brookfield Corp., has said in media interviews that the asset manager has minimal exposure to direct private credit lending, or to loans to software companies.
The private credit sector has come under pressure in part because of fears that new artificial intelligence tools could make existing companies obsolete, which could lead to a potential rise in loan defaults.
So far this year, Brookfield has raised a total of US$67-billion, including a US$40-billion mandate from U.K.-based Just Group PLC. Brookfield closed a deal to acquire the British provider of retirement services such as annuities for £2.4-billion ($4.45-billion) at the start of April, after the first quarter ended.
Brookfield brought in US$13-billion from its credit business, and US$6-billion as part of the first close of its main private equity strategy.
The company also bought back US$375-million of shares after its share price dipped lower this year.
The stock closed at $66.70 on the Toronto Stock Exchange on Thursday.