We came across a bullish thesis on Brookfield Asset Management Ltd. on Roche Capital’s Substack by Pedro Ortiz. In this article, we will summarize the bulls’ thesis on BAM. Brookfield Asset Management Ltd.’s share was trading at $46.61 as of March 4th. BAM’s trailing and forward P/E were 31.01 and 26.25 respectively according to Yahoo Finance.
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Brookfield Asset Management Ltd. is a private equity firm specializing in acquisitions and growth capital investments. BAM delivered a record performance in FY2025, highlighting the scalability of its asset-light alternative asset management model.
The company ended the year with $603 billion in fee-bearing capital, up 12% year over year, while total assets under management reached $1.2 trillion. Fee-related earnings (FRE) increased 22% to $3 billion, supported by strong operating leverage and a 58% margin, while distributable earnings (DE) grew 14% to $2.7 billion.
Importantly, recurring fee income now exceeds total DE, indicating that BAM’s current earnings are fully supported by stable management fees without relying on carried interest or investment gains. Operational momentum remained strong as the firm raised $112 billion of capital, deployed $65.6 billion, and monetized $50.1 billion for clients, demonstrating the strength of its fundraising platform and capital recycling strategy.
The firm’s capital base remains highly durable, with roughly 87% of fee-bearing capital tied to long-term or perpetual structures across infrastructure, renewables, real estate, private equity, and credit. Credit is now the largest vertical with $280 billion in fee-bearing capital, supported by strategic moves such as acquiring the remaining stake in Oaktree Capital Management and purchasing a majority interest in Angel Oak Capital Advisors, strengthening BAM’s position in alternative credit.
Infrastructure, renewable transition assets, and real estate platforms also continued to expand through consistent fundraising, asset deployment, and selective monetizations at attractive valuations. The balance sheet remains conservative with low leverage, ample liquidity, and long-dated debt maturities, allowing the company to maintain an investment-grade profile while returning capital to shareholders. Reflecting confidence in earnings growth, the board approved a 15% dividend increase to $2.01 per share annually.
Looking ahead, management targets doubling fee-bearing capital and earnings by 2030, supported by expansion in AI infrastructure strategies, growth in private wealth distribution, and the maturation of $170 billion of capital eligible for carried interest. Overall, Brookfield Asset Management presents a bullish long-term investment case built on recurring fee income, scalable global platforms, and optional upside from future carried interest realization.
