Brookfield assets hit record of about $1 trillion as quarterly profits rise
Brookfield Asset Management Ltd. reported a gain in quarterly profits and said its assets under management rose to a record of approximately US$1 trillion.
Distributable earnings for the second quarter rose to US$548 million, or 34 U.S. cents a share, the Toronto-based firm said in a statement Wednesday. That’s slightly below the average estimate of analysts in a Bloomberg survey and up from US$527 million a year earlier.
Shares fell about 3.4 per cent, to US$38.78, at 9:41 in New York.
“During the quarter, we raised a total of US$68 billion,” chief executive Bruce Flatt and president Connor Teskey said in a letter to investors.
The firm cited momentum in its credit business and “unprecedented opportunities” in its renewable power and transition business. The inflows included US$49 billion of insurance capital from American Equity Investment Life Holding Co., US$4 billion from its renewable power and transition business and US$1.1 billion from its real estate fund.
Brookfield expects deal activity to pick up now that central banks have begun cutting interest rates, Flatt and Teskey said in the letter. This, in addition to its fundraising efforts, will allow the firm to pursue large-scale transactions and exit some of its investments, they said.
“With several sales processes underway, we anticipate significant monetization activity in the second half of the year, at very attractive returns,” Flatt and Teskey said, adding that the renewable power and transition business is on track for a record year on both buying and selling assets.
Real estate markets, which had been roiled by the sharp rise in interest rates, “continue to show improvement, with tightening credit spreads and the return of liquidity to high-quality
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