On the rise
Brookfield Asset Management Ltd. was higher on Wednesday despite reporting a dip in fourth-quarter profit as challenging economic conditions roiled markets, but still boosted its earnings from fees and raised money at a rapid pace in 2022.
Fourth-quarter results reported Wednesday were the first for Brookfield’s asset manager since it was spun off from Brookfield Corp. (BN-T) as a standalone entity in December.
Brookfield Asset Management’s fourth-quarter profit was down 9.5 per cent to US$504-million, including US$84-million earned after the spin-off. Profit attributable to the 25-per-cent stake of the asset manager that was sold to public shareholders was US$19-million from the date of the spin-off, on December 9, until the end of the year.
Full-year profit was up 3 per cent to US$1.92-billion.
Fee-related earnings increased nearly 8 per cent in the fourth quarter to US$576-million, and distributable earnings – which adjust for items such as taxes and share-based compensation – rose 5.5 per cent to US$569-million.
Brookfield Corp., which will report fourth-quarter earnings on Thursday, owns the remaining 75 per cent interest in Brookfield Asset Management.
In a letter to shareholders, Brookfield chief executive officer Bruce Flatt and the asset manager’s president, Connor Teskey, said they expect Brookfield Asset Management to grow rapidly in spite of tough market conditions stemming from high inflation, rapid interest rate increases and geopolitical tensions.