Summary of BAM Q4 2025 Earnings Call

1Key Financial Results and Metrics

Fee-Related Earnings (FRE): Increased 28% year-over-year to $867 million ($0.53 per share) for Q4, totaling $3 billion for the year.

Distributable Earnings (DE): Rose 18% year-over-year to $767 million ($0.47 per share) for Q4, with a total of $2.7 billion for the year.

Fee-Bearing Capital: Grew 12% to over $600 billion, driven by strong fundraising and disciplined capital deployment.

Record Fundraising: $112 billion raised in 2025, with $35 billion in Q4 alone, marking the strongest quarter ever.

Dividend Increase: Quarterly dividend raised by 15% to $0.5025 per share, payable on March 31, 2026.

2Strategic Updates and Business Highlights

Investment Activity: Invested a record $66 billion in high-quality assets, including significant acquisitions in renewable power, private equity, and infrastructure.

Leadership Transition: Connor Teskey appointed CEO, with Bruce Flatt remaining as Chairman, indicating a smooth succession plan.

Focus on AI Infrastructure: Launched a $100 billion global AI infrastructure program, with $5 billion in commitments already secured.

Diversification: Continued expansion of the credit platform and private wealth strategies, with nearly 90% of fundraising coming from non-flagship strategies.

3Forward Guidance and Outlook

2026 Expectations: Anticipated strong growth, with FRE growth expected to exceed long-term targets (mid to high teens), driven by new acquisitions and strong fundraising momentum.

Market Conditions: Entering 2026 with stable interest rates and resilient economic growth, positioning BAM well for continued investment activity.

Long-Term Goals: Aim to double the business by 2030 and achieve 15% annualized earnings growth.

4Bad News, Challenges, or Points of Concern

Margin Pressure: The acquisition of Oaktree may lower overall margins due to its lower-margin business model, despite being strategically beneficial.

Market Volatility: Potential risks from economic fluctuations and competitive pressures in the private credit space, particularly concerning redemptions and tightening spreads.

Regulatory Environment: Changes in regulations regarding alternative investments in 401(k) plans could impact future fundraising dynamics.

5Notable Q&A Insights

Private Credit Strategy: BAM is selectively considering opportunities in the secondary market but remains cautious about acquisitions.

AI-Driven Disruption: BAM views AI as a net positive, with a focus on digital infrastructure and energy solutions to support AI growth.

Wealth Management Growth: Strong momentum in the private wealth channel is expected to continue, supported by new product launches and partnerships with target date fund managers.

Liquidity Position: BAM maintains a strong liquidity profile with $3 billion available, allowing flexibility for growth and strategic initiatives. This summary captures the key elements discussed in the earnings call, providing a balanced view of BAM's performance, strategic direction, and outlook for the future.