Key Morningstar Metrics for Brookfield Asset Management
- Fair Value Estimate: C$78.00
- Morningstar Rating: ★★★
- Morningstar Economic Moat Rating: Narrow
- Morningstar Uncertainty Rating: High
What We Thought of Brookfield Asset Management’s Earnings
Brookfield Asset Management BAM ended December 2025 with USD 603 billion in fee-earning assets, up 3.8% sequentially and 11.9% year over year. Total fee revenue increased 24.3% year over year to USD 255 million in the quarter, while fee-related earnings increased 28.1% to USD 867 million.
Why it matters: Brookfield continues to generate positive flows, with its mix of alternative products—through its real estate/real assets, private equity, and private credit segments—benefiting from ongoing demand for non-traditional products.
- The firm picked up USD 34.7 billion from fundraising efforts during the fourth quarter, above its quarterly run rate of USD 30.1 billion in the previous eight calendar quarters. Brookfield also deployed USD 12.9 billion during the period, above its quarterly run rate of USD 12.5 billion over the past two years.
- Reported realizations of USD 12.7 billion were a step down from USD 15.2 billion during the third quarter but left the firm with USD 50.1 billion in monetizations for the full year. Going forward, we expect more conducive capital markets will lead to above-average levels of realizations, further supporting ongoing fundraising and deployment efforts.
The bottom line: With USD 1.181 trillion in total assets under management, Brookfield remains the second-largest alternative asset manager in the world—behind Blackstone at USD 1.275 trillion. Effective fundraising, deployment, and realization activity have allowed the firm to continue to grow organically, despite the more volatile markets we’ve seen during the past five years.
- As there was little in narrow-moat-rated Brookfield’s fourth-quarter results that would alter our long-term view of the firm, we expect to leave our fair value estimate in place.
- Brookfield’s shares are modestly undervalued right now relative to our fair value estimate. We continue to recommend that investors look for a 15% discount to our fair value estimate before considering the shares.
