Brookfield Asset Management is preparing to deploy part of its $119bn in uncalled capital to capitalise on ongoing market volatility, with a focus on real assets, private credit, and private equity opportunities. 

The firm raised $25bn in Q1 2025 and sees dislocation in credit markets and retreating public liquidity as tailwinds for private capital deployment.

“We are well-positioned and fully intend to capitalise opportunistically on market dislocations,” said CEO Bruce Flatt and President Connor Teskey in a letter to investors.

The firm raised $14bn across credit strategies last quarter, including $5.9bn for its flagship real estate vehicle, bringing total fund commitments to $16bn. Teskey noted that the current rate environment is creating a “significant opportunity” to acquire properties where traditional capital structures are under stress.

Private equity remains a key pillar of Brookfield’s growth strategy. The firm will launch the next vintage of its flagship PE fund later this year. In Q1, Brookfield deployed $16bn and exited $10bn in deals. The firm also closed its latest flagship opportunistic credit fund at $16bn via Oaktree Capital Management.

Structured investments are increasingly in demand, particularly in infrastructure and private equity, where sponsors are facing restricted access to public capital markets. Brookfield’s fee-bearing capital rose 20% year-on-year to $549bn, and Q1 distributable earnings rose 20% to $654m, in line with analyst expectations.

Brookfield has deployed $1.4bn into three new partnerships since its spin-out from Brookfield Corporation, while also increasing its stake in Oaktree to 74%. It recently agreed to acquire a majority stake in Angel Oak Companies, an $18bn mortgage credit platform, and formed a partnership with private debt manager Castlelake.

The firm sees a “compelling opportunity” to grow ownership in affiliated managers, with potential to add more than $250m in fee-related earnings over the next five years.

Brookfield also repurchased over two million shares in Q1 and reported a 32% increase in net income year-on-year to $581m.

Source: Bloomberg