Brookfield Asset Management is preparing to capitalise on global market dislocations by deploying part of its $119bn in uncalled capital, with a focus on high-quality real assets and credit opportunities emerging from ongoing volatility, according to a report by Bloomberg.
In a letter to investors alongside its Q1 2025 results, CEO Bruce Flatt and President Connor Teskey said Brookfield is “well-positioned and fully intends to capitalise opportunistically on market dislocations.” The firm pointed to increasing credit market stress and a retreat in public liquidity as key drivers opening the door for private capital solutions.
Brookfield, which oversees more than $1tn in assets, raised $25bn in Q1, including $14bn across its credit strategies. Its flagship real estate fund raised $5.9bn during the quarter, bringing total commitments to approximately $16bn. Teskey said the current interest rate environment has created a “significant opportunity” to acquire properties where existing capital structures are under pressure, particularly in supply-constrained markets.
Private equity is also on the agenda. Brookfield plans to launch the next vintage of its flagship PE fund later this year. The firm deployed $16bn during the quarter and exited deals totalling $10bn.
In credit, Brookfield recently closed its latest flagship opportunistic vehicle at $16bn via its Oaktree Capital Management platform. Teskey said structured investments are gaining traction, particularly in infrastructure and private equity, where counterparties are struggling to access public capital markets.
Fee-bearing capital grew 20% year-on-year to $549bn, while distributable earnings rose to $654M for the quarter, up 20%, in line with analyst expectations.
Brookfield continues to expand its investment platform and has deployed $1.4bn into three new partnerships since its spinout from Brookfield Corporation as well as increasing its stake in Oaktree to 74%. It also recently agreed to acquire a majority interest in Angel Oak Companies, an $18bn mortgage credit platform, and entered a partnership with private debt specialist Castlelake.
The firm sees a “compelling opportunity” to increase its ownership stakes in affiliated managers, with the potential to generate over $250 million in additional fee-related earnings over the next five years.
Brookfield also repurchased over two million shares during the quarter and reported a 32% year-on-year increase in net income to $581m.
