Brookfield signals $80B nuclear partnership and launches AI infrastructure fund as 2026 growth accelerates

Earnings Call Insights: Brookfield Asset Management Ltd. (BAM:CA) Q3 2025

MANAGEMENT VIEW

*
CEO Bruce Flatt reported another strong quarter for Brookfield, highlighting "record fundraising, earnings deployment and monetization." Flatt stated, "Quarterly fee-related earnings grew 17% over the past year to $754 million. Distributable earnings grew 7% to $661 million, and fee-bearing capital reached $581 billion, an 8% increase year-over-year, all driven by our strongest fundraising period ever." He attributed these results to Brookfield’s global scale, diversification, and long-term client partnerships.

*
Flatt noted, "The third quarter alone saw $1 trillion of announced deals, the highest level since 2021," emphasizing improved transaction conditions and robust M&A activity. He also announced Brookfield’s agreement to acquire the remaining 26% of Oaktree Capital Management, combining their $350 billion credit platform for deeper collaboration and expanded client offerings.

*
President Connor Teskey highlighted the launch of Brookfield’s AI infrastructure fund: "We estimate that AI-related infrastructure investments will exceed $7 trillion over the next decade... we are launching our AI infrastructure fund. A first-of-its-kind strategy that pulls together our global relationships with hyperscalers, our expertise in real estate, and our leading position in infrastructure and energy into one strategy." Teskey also announced a landmark $80 billion nuclear partnership with the U.S. government to construct new reactors using Westinghouse technology.

*
CFO Hadley Peer Marshall reported, "Fee-related earnings were up 17% to $754 million, or $0.46 per share, and distributable earnings were up 7% to $661 million, or $0.41 per share." She noted fee-bearing capital inflows of $92 billion over the last 12 months and emphasized the simplicity and consistency of Brookfield’s earnings base. Peer Marshall detailed the $750 million issuance of 30-year senior secured notes and increased revolver capacity by $300 million.

OUTLOOK

* Management expects fundraising for 2025 to "meaningfully exceed" the prior year’s ex-AEL target of $85-$90 billion, with $77 billion already raised through three quarters. Flatt projected, "we very much expect 2026 to exceed the levels we'll achieve in 2025." The addition of Oaktree, Just Group, and Angel Oak is expected to add nearly $200 million to fee-related earnings on a run-rate basis. Peer Marshall reiterated the plan to double the business by 2030, targeting fee-related earnings of $5.8 billion, distributable earnings of $5.9 billion, and fee-bearing capital of $1.2 trillion.

FINANCIAL RESULTS

* Peer Marshall confirmed fee-bearing capital increased to $581 billion, with 12-month inflows of $92 billion. The third quarter saw $18 billion growth in fee-bearing capital, and $30 billion was raised during the quarter. Fundraising was broad-based, with $4 billion for the global transition flagship (totaling $20 billion), $3.5 billion for infrastructure, $2.1 billion for private equity, and $16 billion for credit, including $6 billion in private credit funds and $5 billion from Brookfield Wealth Solutions. Operating margin stood at 58% for the quarter, up from the prior year.

Q&A

*
Alexander Blostein, Goldman Sachs: Asked about fundraising momentum into 2026 and implications for management fee growth. Flatt responded, "we expect next year to be a very strong year," driven by the addition of new acquisitions and continued fundraising momentum.

*
Sohrab Movahedi, BMO: Inquired about credit business fee rates and risk management for partner managers. Flatt attributed the higher blended fee rate to mix shifts and one-off transaction fees, while Peer Marshall emphasized focus on asset-backed finance and real assets: "low default rates and high recovery rates... puts us in a really good position."

*
Cherilyn Radbourne, TD Cowen: Asked about the Oaktree buy-in. Flatt outlined near-term upsides: collapsing Oaktree’s balance sheet, realizing operating leverage, and expanded client solutions.

*
Bart Dziarski, RBC: Asked about retail product momentum and distribution. Flatt described "robust" momentum and highlighted efforts to secure placement on major distribution platforms, with the private equity product expected to scale rapidly.

*
Craig Siegenthaler, BofA: Questioned the direct lending market. Teskey indicated Brookfield is "avoiding the most commoditized components of the market" and focusing on real assets and asset-backed credit for risk-adjusted returns.

*
Kenneth Worthington, JPMorgan: Asked about margin trajectory. Peer Marshall explained margin dynamics driven by integration of lower-margin partner managers and Oaktree, offset by growth in core business margins.

*
Daniel Fannon, Jefferies: Inquired about private equity fundraising optimism. Flatt cited Brookfield’s operational improvement focus and consistent historical returns as drivers for expected record fundraising.

*
Jaeme Gloyn, National Bank: Asked about client base breadth. Flatt detailed initiatives targeting "small or medium-sized institutions," insurance companies, and family offices for broadening fundraising sources.

SENTIMENT ANALYSIS

*
Analysts’ tone was largely positive, focusing on growth momentum, fundraising, and strategic initiatives, though some probed for detail on fee rates, margin sustainability, and risk management.

*
Management maintained a confident tone during prepared remarks and the Q&A, using phrases such as "we are confident" and "we expect next year to be a very strong year." Peer Marshall’s responses on risk management and margins reflected discipline and reassurance.

*
Compared to the previous quarter, both analysts and management showed heightened optimism and confidence, reflecting the record results and the scale of new strategic initiatives.

QUARTER-OVER-QUARTER COMPARISON

*
Guidance language shifted from optimism to explicit targets for exceeding prior fundraising and earnings growth in 2026.

*
Strategic focus expanded with the launch of the AI infrastructure fund and the $80 billion nuclear partnership.

*
Analysts focused more on the sustainability of fee-related earnings growth and margin expansion, as opposed to previous inquiries centered on the evolution of distribution channels and regulatory opportunities.

*
Management’s tone was more assertive this quarter, emphasizing the scale of new opportunities and strategic acquisitions, compared to the prior quarter’s measured optimism around platform expansion and new product launches.

RISKS AND CONCERNS

*
Peer Marshall addressed potential risks in partner manager performance, emphasizing Brookfield’s due diligence, collateral, and low default rates in asset-backed finance. She noted, "No, we don't see that. And it goes back to the area of focus... we've got strong structures in place."

*
Flatt acknowledged commoditization in certain private credit segments, reiterating Brookfield’s disciplined approach and avoidance of less attractive risk-adjusted opportunities.

*
Analysts probed for possible negative surprises from partner managers and sustainability of recent fee rate improvements, but management emphasized diversification and structural safeguards.

FINAL TAKEAWAY

Brookfield’s management underscored a record-setting quarter with robust fundraising, transformative strategic initiatives such as the launch of the AI infrastructure fund, and the $80 billion nuclear partnership with the U.S. government. The full acquisition of Oaktree Capital signals an expansion of the credit platform and operational integration. With double-digit growth rates, expanding margins, and a deepening product suite targeting both institutional and retail channels, Brookfield projects an even stronger 2026 and remains confident in its plan to double the business by 2030 while maintaining disciplined risk management and operational excellence.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/bam:ca/earnings/transcripts]

MORE ON BROOKFIELD ASSET MANAGEMENT LTD.

* Brookfield Asset Management Ltd. (BAM:CA) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4840329-brookfield-asset-management-ltd-bam-ca-q3-2025-earnings-call-transcript]
* Brookfield Asset Management: A Better Company Since The Spin-Off [https://seekingalpha.com/article/4829445-brookfield-asset-management-better-company-since-spin-off]
* Brookfield Asset Management: Predictable Financials With A Lower Risk Profile [https://seekingalpha.com/article/4826112-brookfield-asset-management-predictable-financials-lower-risk-profile]
* Brookfield Asset Management Ltd. Q3 2025 Earnings Preview [https://seekingalpha.com/news/4517412-brookfield-asset-management-ltd-q3-2025-earnings-preview]
* Earnings week ahead: AMD, PLTR, PFE, O, QCOM, ENB, SHOP, MCD, UBER, SMCI, BP, LCID, MRNA, ABNB, WBD, DKNG, AMC, and more [https://seekingalpha.com/news/4512329-earnings-week-ahead-amd-pltr-pfe-o-qcom-enb-shop-mcd-uber-smci-bp-lcid-mrna-abnb-wbd-dkng-amc-and-more]