Real estate, private equity funds hit notable milestones
Last year was a good one for Brookfield Asset Management with several milestones achieved.
The global alternative asset manager has just released its year-end financial results to December 31, 2018, revealing $7.5 billion of net income, a sharp increase from $4.5 billion in the previous year.
Brookfield CEO Bruce Flatt, one of the 50 members of Wealth Professional Canada’s 2018 Hot List, says it was a record-year for the firm.
"Fundraising has been strong and included the recent closing of our largest flagship real estate fund to date at $15 billion, as well as a $7 billion first close for our flagship private equity fund,” explained Flatt. “We invested or committed $35 billion into new transactions during the year and ended the year with $34 billion of capital for deployment globally."
Funds from operations (FFO) also reached a new record of $4.4 billion, up from $3.8 billion in 2017.
Fee related earnings (after costs) contributed more than $1.1 billion to FFO in 2018, a 26% increase from the prior period, reflecting growth in Brookfield’s private fund fee bearing capital and increased fees from our listed partnerships.
Overall fee bearing capital reached $138 billion, a 10% increase over December 2017, led by fundraising for the firm’s latest vintage of flagship funds.
Organic growth was strong across the firm’s portfolio, particularly in the private equity business because of improved pricing within its industrial operations.
