Brookfield Asset Management reported record second-quarter fundraising of $77 billion, driving fee-related earnings (FRE) up 20% year-over-year to $808 million. Distributable earnings rose 15% to $707 million, reflecting strong momentum across flagship strategies and new mandates.

The quarter was led by two flagship strategies and a significant $40 billion mandate from Just Group, which increased insurance capital managed by more than a third. Fee-bearing capital reached $672 billion, up 19% over the last 12 months. Year-to-date fundraising stands at $98 billion, with the trailing 12-month total at $163 billion.

Strategic expansion in AI and credit

Management highlighted strategic initiatives focused on AI infrastructure, including partnerships with Nvidia and Bloom Energy. The company launched an AI Infrastructure Fund targeting $10 billion and expanded its framework with Bloom Energy fivefold to $25 billion. Additionally, the development framework with France for sovereign AI infrastructure increased from 20 billion euros to 30 billion euros.

The completion of the Oaktree acquisition further strengthened the credit platform. Management noted that while there is competition in AI infrastructure, demand remains strong due to differentiated capabilities in energy, digital infrastructure, and full-value-chain investment. The non-traded BDC fund saw redemption requests fall below 5%, which were met in full, with robust inflows continuing into other wealth strategies like infrastructure.

Financial performance overview

What the numbers show

The divergence between the $77 billion quarterly fundraising and the $40 billion Just Group mandate indicates that organic fundraising remains robust. Even excluding this large insurance transaction, the quarter would have set a record for organic fundraising, driven by momentum in flagship private equity and infrastructure funds. This suggests that the growth is not solely dependent on one-off large mandates but reflects broad-based strength across the platform's diverse product suite.

Brookfield Asset Management (NYSE: BAM, TSX: BAM) has been selected by the Nuclear Liabilities Fund (NLF) to manage a long-term investment mandate with an initial $1bn commitment.

The deal targets the fund's requirement to cover decommissioning costs for eight UK nuclear power stations without relying on taxpayers.

Deal Structure and Strategy

The mandate will be managed by Brookfield’s Investment Solutions Group (ISG), chaired by Oaktree Co-Chairman Howard Marks and led by Alper Daglioglu. The portfolio will invest globally across Brookfield’s infrastructure, energy, private equity, real estate, and private credit strategies.

Investments are expected to include a mix of fund commitments, direct investments, and co-investments. The structure aligns the portfolio’s horizon with NLF’s multi-decade funding needs, emphasizing disciplined capital allocation and reinvestment of proceeds to enhance long-term net investment outcomes.

What the Numbers Show

The initial commitment of $1bn represents a significant portion of the NLF’s current asset base, given that the fund has paid out circa £3bn in decommissioning costs to date. The mandate’s design to reinvest capital rather than distribute it suggests a focus on compounding returns to meet liabilities that extend into the next century.

Executive Commentary

Alper Daglioglu, Head of Brookfield’s Investment Solutions Group, stated that the partnership is built on long-term thinking and the power of compounding over decades. He noted that Brookfield would draw on its breadth of capabilities to customize the portfolio around NLF’s specific objectives.

Melissa Hope, CEO of the Nuclear Liabilities Fund, said Brookfield stood out for its depth of global investment capability and disciplined approach. She highlighted that the partnership is designed to support obligations over a multi-decade horizon.

About the Parties

Brookfield Asset Management Ltd. is a global alternative asset manager headquartered in New York, with over $1 trillion of assets under management. The Nuclear Liabilities Fund was established in 1996 as an independent ring-fenced fund to meet the costs of decommissioning eight nuclear power stations in the UK.