Brookfield Asset Management Inc

Brookfield reported first-quarter 2026 fee-related earnings of $772 million, up 11% year over year, or $0.48 per share. Distributable earnings were $702 million, up 7% year over year, or $0.43 per share. Over the last 12 months, FRE reached $3.1 billion, up 18%, and DE reached $2.7 billion. Margin was 57% in the quarter and 58% over the last 12 months. The company raised $21 billion in the quarter and ended with $614 billion of fee-bearing capital, up 12% over the last twelve months; year-to-date fundraising was $67 billion. Management said 2026 should be a record fundraising year and expects to exceed long-term growth targets, with stronger FRE driven by run-rate growth, partner managers, new flagship funds, the Just Group mandate, and the expected Oaktree acquisition. No specific full-year revenue or EPS guidance was given.

Connor Teskey framed 2026 as a breakout year and said Brookfield is entering the period with scale, liquidity, and exposure to “essential assets and businesses.” He stressed that AI infrastructure, energy, real assets, and credit are all working in Brookfield’s favor, while areas like software and sponsor direct lending are a limited part of the platform. His tone was confident and strategic, emphasizing that the firm is not just defensive in this environment but positively positioned to outperform.

Hadley Peer Marshall focused on the durability of earnings, noting that FRE grew 11% to $772 million and DE grew 7% to $702 million, with margins holding at 57% for the quarter and 58% over the last 12 months. She said the Oaktree acquisition, once closed in the second quarter, will change reported margin presentation because Brookfield will consolidate 100% of Oaktree and provide more transparency for partner managers, but she said the underlying economics are unchanged and operating leverage should continue to support margins over time. She also highlighted $375 million of buybacks in Q1, another $200 million in Q2 to date, $1 billion of senior unsecured notes issued after quarter-end, and $2.5 billion of corporate liquidity at quarter-end.

Analysts focused on Oaktree’s dry powder and ability to deploy into distress, AI fundraising and differentiation, the 2026 growth setup, buybacks versus debt, retail and private wealth ambitions, and margin pressure from Oaktree consolidation. Management said Oaktree has “a lot of dry powder,” sees sector-specific distress today, and could deploy “in the tens of billions” over 12-24 months if a dislocation opens, while also saying the current setup is more a gradual opportunity than an immediate broad distress wave. On AI, Connor said the opportunity set is vast and Brookfield can be highly selective, citing the Bloom Energy partnership as a $5 billion deal already being discussed for expansion by multiples; on margins, Hadley said Oaktree will be dilutive on reported margins but operating leverage should still show through on an apples-to-apples basis.