Brookfield Joins List of Companies With $1T in Assets Under Management
Welcome to the trillion dollar club.
By Mark Hallum August 7, 2024 12:22 pm
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Brookfield (BN) Asset Management is officially a mammoth corporation with $1 trillion in assets under management.
The company said in its earnings report released Wednesday that it hit the trillion mark in part thanks to its portfolio diversification in renewable energy and artificial intelligence.
“We also continue to see unprecedented opportunities in our renewable power and transition business, as evidenced by the recent partnership with Microsoft and our agreement to acquire Neoen, one of the world’s leading renewable power operators,” Brookfield President Connor Teskey, who at 36 is on the path to becoming the next CEO, said in a statement. “With one of the largest pipelines of over 230,000 megawatts of renewable power in operation and under development, and our rapidly growing data center platforms, which has seen its US capacity grow four fold over the last two years, we are the infrastructure leader behind the ongoing AI revolution.”
Brookfield’s new status elevates it to the level of other AUM heavyweights like BlackRock, which has $9.1 trillion in assets under management, Vanguard Group with $7.2 trillion and State Street Global Advisors with $3.6 trillion.
Its $1 trillion in assets under management wasn’t the only good news from Brookfiled’s earnings report. Brookfield’s net income totaled $124 million for the second quarter of 2024, a jump from the $109 million over the same period last year, and it recently raised about $68 billion in capital, according to the earnings report.
Brookfield also showed resilience as the stock market took a dive this week— the biggest decline since 2022— and investors sold off shares. This impacted Brookfield less because of its infrastructure and renewable energy investments serving critical industries like transportation, energy and data transmission as well as storage, according to earnings reports released last week by its subsidiaries managing those types of assets.
In the second quarter, Brookfield raised $4 billion in capital for renewable power and transition, $900 million for infrastructure and brought the fund for its real estate business to $9 billion. It raised $500 million in capital for its private equity business, bringing that fund to $800 million.
Up to $6 billion was deployed throughout its credit business and it also invested $1.5 billion into real estate assets with $500 million, going toward multifamily acquisitions across the U.S., according to the company.
Mark Hallum can be reached at mhallum@commercialobserver.com.
