Q1 2024 Brookfield Asset Management Earnings Call

Operator: Hello, and welcome to Brookfield Asset Management's first quarter 2024 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. I would now like to hand the conference call over to our first speaker, Mr. Jason Fooks, Managing Director, Investor Relations. Please go ahead.

Operator: Hello and welcome to Brookfield Asset Management's first quarter 2024 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. I would now like to hand the conference call over to our first speaker, Mr. Jason Fuchs, Managing Director, Investor Relations. Please go ahead.

Hello, and welcome to the Brookfield asset management's first quarter 2024 conference call and webcast. At this time all participants are in a listen only mode.

Operator: After the speaker's presentation, there will be a question and answer session to ask a question. During this session you will need to press star one wondering your telephone.

Jason Fuchs: I would now like to hand, the conference call over to our first speaker, Mr. Jason folks managing director of Investor Relations. Please go ahead.

Jason Fooks: Thank you for joining us today for Brookfield Asset Management's earnings call. On the call today, we have Bruce Flatt, our Chief Executive Officer, Connor Teskey, our President, Bahir Manios, our Chief Financial Officer, and Hadley Peer Marshall, our incoming Chief Financial Officer. Bruce will start the call today with opening remarks, followed by Connor, who will talk about some of the important drivers of our future growth. Bahir will discuss our financial results. And finally, Hadley will provide an update on our fundraisers.

Jason Fuchs: Thank you for joining us today for Brookfield Asset Management's earnings call. On the call today, we have Bruce Flatt, our Chief Executive Officer, Conor Teske, our President, Bahir Manios, our Chief Financial Officer, and Hadley Peer-Marshall, our incoming Chief Financial Officer. Bruce will start the call today with opening remarks, followed by Connor, who will talk about some of the important drivers of our future growth. Bahir will discuss our financial results, and finally, Hadley will provide an update on our fundraisers.

Jason Fuchs: Thank you for joining us today for Brookfield asset management's earnings call on the call today, we have Bruce Flatt, our Chief Executive Officer, Conor tests. He our president here many of US, our Chief Financial Officer, and Hadley pure Marshal our incoming Chief financial Officer.

Jason Fuchs: Bruce will start the call today with opening remarks, followed by Connor, who will talk about some of the important drivers of our future growth here will discuss our financial results and finally provide an update on our fundraising after our formal comments, we'll turn the call over to the operator and take analyst questions in order to accommodate all those who want to ask questions. We ask that you refrain from asking.

Jason Fooks: After our formal comments, we'll turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we ask that you refrain from asking more than two questions at one time. If you should have additional questions, please rejoin the queue, and we'll be happy to take additional questions at the end if time permits. Before we begin, I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives and our financial and operating performance, we make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. securities law.

Jason Fooks: More than two questions at one time.

Jason Fuchs: You should have additional questions. Please rejoin the queue and we'll be happy to take additional questions at the end if time permits.

Jason Fuchs: After our formal comments, we'll turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we ask that you refrain from asking more than two questions at one time. If you should have additional questions, please rejoin the queue, and we'll be happy to take additional questions at the end if time permits. Before we begin, I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives and our financial and operating performance, we make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. securities law.

Jason Fuchs: Before we begin I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives and our financial and operating performance. We may make forward looking statements, including forward looking statements within the meaning of applicable Canadian and U S. Securities Law. These statements reflect predictions of future events and trends and do not relate to historic events.

Jason Fooks: These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. And with that, I'll turn the call over to Bruce.

Jason Fuchs: These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. And with that, I'll turn the call over to Bruce.

Jason Fuchs: Subject to known and unknown risks and future events and results may differ materially from such statements for further information on these risks and their potential impacts on our company. Please see our filings with the securities regulators in Canada, and the U S and the information available on our website and with that I'll turn the call over to Bruce.

James Bruce Flatt: Thank you, Jason, and welcome everyone on the call. Our business is performing extremely well, and results were strong in the first quarter, driven by execution across all aspects of our business and highlighted by robust fundraisers. successful Capital Markets execution and several Strategic Transactions. This should lead to excellent growth in overall results in 2024. Improving market sentiment has been growing. Liquidity is returning to the capital markets, and most major economies are performing better than expected.

James Bruce Flatt: Thank you, Jason, and welcome everyone on the call. Our business is performing extremely well, and results were strong in the first quarter, driven by execution across all aspects of our business and highlighted by robust fundraisers. Success in Capital Markets Execution and several Strategic Transactions. This should lead to excellent growth in overall results in 2024. Furthermore, improving market sentiment has been growing. Liquidity is returning to the capital markets, and most major economies are performing better than expected.

Bruce: Thank you, Jason and welcome everyone on the call.

James Bruce Flatt: Our business is performing extremely well and results were strong in the first quarter driven by execution across all aspects of aspects of our business and.

James Bruce Flatt: And highlighted by robust fundraising successful capital markets execution and several strategic transactions.

James Bruce Flatt: This should lead to excellent growth and overall results in 2024.

James Bruce Flatt: Improving market sentiment has been growing.

James Bruce Flatt: Liquidity is returning to the capital markets.

James Bruce Flatt: And most major economies are performing better than expected.

James Bruce Flatt: This, in turn, has revived risk appetite among many investors and is fostering an increasingly stable and more constructive market. We raised a total of $20 billion of capital during the first quarter, which included strong first closes for two of our flagship funds.

James Bruce Flatt: This, in turn, has revived risk appetite among many investors and is fostering an increasingly stable and more constructive market. We raised a total of $20 billion in capital during the first quarter, which included strong first closes for two of our flagship funds.

James Bruce Flatt: This in turn has revised risk appetite among many investors and is fostering an increasingly stable and more constructive market.

James Bruce Flatt: We raised a total of $20 billion of capital during the first quarter, which included strong first closes for our two flagship two of our flagship funds.

Connor David Teskey: Our flagship funds, along with our private credit funds and insurance solutions channel, have been among where our largest fund flows have come from over the past year. More broadly, we see continued client demand for more than 50 strategies that are in the market and expect our fundraising to continue to build throughout the year. This should lead to an excellent year for fundraising.

James Bruce Flatt: Our flagship funds, along with our private credit funds and insurance solutions channel, have been among where our largest fund flows have come from over the past year. More broadly, we see continued client demand for more than 50 strategies that are in the market and expect our fundraising to continue to build throughout the year. This should lead to an excellent year for fundraising.

James Bruce Flatt: Our flagship funds along with our private credit funds and insurance solutions channel have been have been among where our largest fund flows have come from over the past year.

James Bruce Flatt: More broadly we see we see continued client demand for more than 50 strategies that are in the market and expect our fundraising to continue to build throughout the year.

James Bruce Flatt: This should lead to an excellent year for fundraising.

Connor David Teskey: Continued consolidation in the asset management sector is a tailwind, with clients preferring to do more with fewer, larger, and more diversified global managers. The market environment is also more conducive to transaction activity. We are seeing first-hand an improving market for sales of high-quality assets, particularly apparent in the Private Equity and Real Estate asset class, where transaction volume has been lighter over the past few years but is now picking up. Most notably, we sold a 49% interest in ITD Brookfield Place.

James Bruce Flatt: Continued consolidation in the asset management sector is a tailwind, with clients preferring to do more with fewer, larger, and more diversified global managers. The market environment is also more conducive to transaction activity. We are seeing first-hand an improving market for sales of high-quality assets, particularly apparent in the Private Equity and Real Estate asset class, where transaction volume has been lighter over the past few years but is now picking up. Most notably, we sold a 49% interest in the ITD Brookfield Place, a premier office property in Dubai, for approximately $1.5 billion, marking one of the largest real estate transactions globally since the pandemic at the highest valuation for an office property ever in the region.

Connor David Teskey: <unk> consolidation in the asset management sector is a tailwind with clients, preferring to do more with fewer larger and more diversified global managers.

James Bruce Flatt: The market environment is also more conducive for transaction activity.

James Bruce Flatt: We are seeing firsthand, an improving market for sales of high quality assets.

James Bruce Flatt: This is particularly apparent in their private equity and real estate asset classes, where transaction volume has been lighter over the past few years, but it is now picking up.

Connor David Teskey: Most notably we sold a 49% interest in the ICD Brookfield place.

Connor David Teskey: Premier Office Property in Dubai for approximately $1.5 billion, marking one of the largest real estate transactions globally since the pandemic at the highest valuation for an office property ever in the region. Over the past year, we also sold or are under contract to sell approximately $35 billion of assets across all of our businesses, generating very good returns on capital. And as we look forward to the rest of 24, we see more monetizations to come.

James Bruce Flatt: A premier property office property in Dubai for approximately $1 5 billion.

James Bruce Flatt: Marking one of the largest real estate transactions globally since the pandemic at the highest valuation for an office property ever in the region.

James Bruce Flatt: Over the past year, we also sold or are under contract to sell approximately $35 billion of assets across all of our businesses, generating very good returns on capital. And as we look forward to the rest of 24, we see more monetizations to come. We are also continuing to take advantage of the currently strong debt markets to refinance debt at attractive rates. Thanks to the high-quality nature of our businesses and continued progress on operational improvement plans across many of our portfolio companies within our private equity business, we have been able to successfully refinance over $18 billion of borrowings, resulting in a decrease in the overall cost of debt compared to the debt that we replaced.

James Bruce Flatt: Over the past year, we also sold or under contract to sell approximately $35 billion of assets across all of our businesses generating very good returns on capital.

James Bruce Flatt: And as we look forward to the rest of 'twenty, four or we see more monetization to come.

Connor David Teskey: We are also continuing to take advantage of the currently strong debt markets to refinance debt at attractive rates. Thanks to the high-quality nature of our businesses and continued progress on operational improvement plans across many of our portfolio companies within our private equity business. We have been able to successfully refinance over $18 billion of borrowings, resulting in a decrease in the overall cost of debt compared to the debt that we replaced. At the same time, there are still many instances where the balance sheets of owners of high-quality businesses and assets cannot withstand the increase in rates over the past two years or where business fundamentals have not lived up to the expectations of the capital structure that was put in place at the time when they financed the business.

James Bruce Flatt: We're also continuing to take advantage of currently strong debt markets to refinance debt at attractive rates.

James Bruce Flatt: Thanks to the high quality nature of our businesses and continued progress on operational improvement plans across many of our portfolio of companies within our private equity business.

James Bruce Flatt: We have been able to successfully refinance over $18 billion of borrowings, resulting in a actually a decrease in the overall cost of debt compared to the deck that we replaced.

James Bruce Flatt: At the same time, there are still many instances where the balance sheets of owners of high-quality businesses and assets cannot withstand the increase in rates over the past two years or where business fundamentals have not lived up to the expectations of the capital structure that was put in place at the time when they financed the business.

Connor David Teskey: At the same time, there is so many instances where the balance sheets of owners of high quality businesses and assets cannot withstand.

James Bruce Flatt: The increase of the rates over the past two years or where business fundamentals have not lived up to the expectations.

James Bruce Flatt: Of the capital structure that was put in place at the time when they finance the business.

James Bruce Flatt: This should, therefore, also be an excellent period to invest in both our equity and credit strategies. To support this, we enter this period with over $100 billion of dry powder ready to invest and a strong balance sheet to support strategic initiatives. To that end, we have announced three strategic transactions so far this year. First, we recently added management responsibility for the $50 billion of AEL capital that came to our parents. Second, we agreed to acquire the majority stake in Castle Lake, a best-in-class manager focused on aviation and specialty finance.

Connor David Teskey: This should, therefore, also be an excellent period to invest in both our equity and credit strategies. To support this, we enter this period with over $100 billion of dry powder ready to invest and a strong balance sheet to support strategic initiatives. To that end, we have announced three strategic transactions so far this year. First, we recently added management responsibility for the $50 billion of AEL capital that came to our parents. Second, we agreed to acquire the majority stake in Castle Lake, a best-in-class manager focused on aviation and specialty finance. Third, we expanded our partnership with Oak Tree by acquiring an additional close to 5% interest in the company.

James Bruce Flatt: This should therefore also being an excellent period to invest for both our equity and credit strategies.

Connor David Teskey: To support this we entered this period with over $100 billion of dry powder ready to invest and a strong balance sheet to support strategic initiatives.

James Bruce Flatt: Third, we expanded our partnership with Oaktree by acquiring an additional close to 5% interest in the company. Conor will speak to each of these in more depth, but we're excited about the opportunity to serve our clients in more ways, bolster the capabilities of our credit group, and further drive fee-related earnings. It's been a very active start to the year, and we look forward to keeping you updated on our progress.

James Bruce Flatt: To that end, we announced three strategic transactions so far this year.

Connor David Teskey: First we recently added management responsibility for the $50 billion of ADL capital that came to our parents.

James Bruce Flatt: Second we agreed to acquire a majority stake in Capsulate, a best in class manager focused on aviation and specialty finance.

Connor David Teskey: Third we expanded our partnership with Oaktree by acquiring an additional close to 5% interest in the company.

James Bruce Flatt: Connor will speak to each of these in a little more depth, but we're excited about the opportunity to serve our clients in more ways, bolster the capabilities of our credit group, and further drive fee-related earnings. It's been a very active start to the year, and we look forward to keeping you updated on our progress. Before turning over the call, I wanted to note that Bahir, who has been with Brookfield for 20 years, will be stepping down at the end of this month.

James Bruce Flatt: Conor will speak to each of these with a little more depth.

James Bruce Flatt: But we're excited about the opportunity to serve our clients in more ways bolster the capabilities of our credit group and further drive fee related earnings.

James Bruce Flatt: It's been a very active start to the year and we look forward to keeping you updated on our progress.

James Bruce Flatt: Bahir has made a very significant contribution to many of our businesses over the years, helping drive our infrastructure business, insurance, and, most recently, assisting with the launch of our asset management business into the capital markets. Thank you, Bahir. And as all of you know, the board appointed Hadley Peer Marshall, a 10-year Brookfield veteran, who has driven significant success in our infrastructure group as our new chief financial officer. We are all looking forward to introducing you to Hadley when we have the chance. With that, I will turn the call over to Connor. Thank you for being here.

James Bruce Flatt: Before turning over the call, I wanted to note that Pierre Bahir, who has been with Brookfield for 20 years, will be stepping away at the end of this month. Pierre has made a very significant contribution to many of our businesses over the years, helping drive our infrastructure business, insurance, and, most recently, assisting with the launch of our asset management business into the capital markets. And as all of you know, the board appointed Hadley Peer-Marshall, a 10-year Brookfield veteran, who has driven significant success in our infrastructure group as our new Chief Financial Officer. We are all looking forward to introducing you to Hadley when we have the chance. With that, I will turn the call over to Connor. Thank you for being here.

Speaker Change: Before turning over the call I wanted to note that Bahir, who has been with Brookfield for 20 years will be stepping away at the end of this month.

James Bruce Flatt: <unk> has made a very significant contribution to many of our businesses over the years, helping drive our infrastructure business insurance and most recently assisted with the launch of our asset management business into the capital markets. Thank you Bahir.

James Bruce Flatt: And as all of you know the board appointed Hadley peer Marshall at 10 year Brookfield Breck veteran who has been driven significant success in our infrastructure group as our new Chief Financial Officer.

Connor: We're all looking forward to introducing you to Hadley when we have the chance.

Connor: With that I will turn the call over to Conor.

Connor: Thank you for being here.

Connor: Thank you Bruce.

Connor Teske: As Bruce mentioned, we've had a very active start to the year, both in terms of fundraising and executing on several strategic transactions, and we expect to build on this momentum as we progress through the year. However, my comments today will be focused on how we are positioning ourselves for long-term growth, with three flagships expecting final closes this year, a record number of complementary funds, more than 50 strategies either in or just now coming to market, and the additional asset origination capabilities of the Brookfield Reinsurance Platform from AEL. We expect fundraising will continue to scale throughout 2024.

Connor David Teskey: As Bruce mentioned, we've had a very active start to the year, both in terms of fundraising and executing on several strategic transactions, and we expect to build on this momentum as we progress through the year. However, my comments today will be focused on how we are positioning ourselves for long-term growth, with three flagships expecting final closes this year, a record number of complementary funds, more than 50 strategies either in or just now coming to market, and the additional asset origination capabilities of the Brookfield Reinsurance Platform from ADL. We expect fundraising will continue to scale throughout 2024.

James Bruce Flatt: As Bruce mentioned, we've had a very active start to the year both in terms of fundraising and executing on several strategic transactions and we expect to build on this momentum as we progress through the year.

Connor Teske: However, my comments today will be focused on how we are positioning ourselves for long term growth.

Connor Teske: With three flagships expecting final closest this year a.

Connor Teske: A record number of complimentary funds more than 50 strategies.

Connor David Teskey: Either in or just now coming to market.

Connor Teske: And the additional asset origination capabilities of the Brookfield reinsurance platform from ABL, we expect fundraising will continue to scale throughout 2024.

Connor David Teskey: At the core of our fundraising success is our longstanding track record of delivering attractive returns to our clients, reinforced by the deep relationships and partnership we have built over the last two decades. However, our ability to raise significant levels of capital consistently each year and across different economic environments is due to several important characteristics of our business, and we would like to highlight four of them with you here today. The first is that we have a leadership position in infrastructure, renewable power, transition, and credit, all of which are in high demand by institutional investors today. This demand is in large part because these asset classes sit at the center of three megatrends reshaping the global economy, decarbonization, deglobalization, and digitalization.

Connor Teske: At the core of our fundraising success is our longstanding track record of delivering attractive returns to our clients, reinforced by the deep relationships and partnership we have built over the last two decades. However, our ability to raise significant levels of capital consistently each year and across different economic environments is due to several important characteristics of our business, and we would like to highlight four of them with you here today. The first is that we have a leadership position in infrastructure, renewable power, transition, and credit.

Connor Teske: At the core of our fundraising success is our longstanding track record of delivering attractive returns to our clients.

Connor Teske: Reinforced by the deep relationship and partnership we have built over the last two decades.

Connor David Teskey: However, our ability to raise significant levels of capital consistently each year and across different economic environments. If due to several important characteristics of our business that we would like to heart and we would like to highlight four of them with you here today.

Connor Teske: The first is that we have a leadership position in infrastructure renewable power transition and credit.

Connor Teske: All of which are in high demand by institutional investors today. This demand is in large part because these asset classes sit at the center of three megatrends reshaping the global economy, decarbonization, deregulation, and digitalization. These sectors will require over $200 trillion of capital over the next 30 years, creating significant growth opportunities as we create products and solutions to address these market needs. We have deliberately focused on expanding our ability to raise capital across multiple channels with every global investor base, while we continue to see ample opportunity to raise capital from institutional investors.

Connor Teske: All of which are in high demand by institutional investors today.

Connor Teske: This demand is in large part because these asset classes sit at the center of three Mega trends reshaping the global economy.

Connor Teske: Carbonization de globalization and digitalization.

Connor David Teskey: These sectors will require over $200 trillion of capital over the next 30 years, creating significant growth opportunities as we create products and solutions to address these market needs. We have deliberately focused on expanding our ability to raise capital across multiple channels with every global investor base, while we continue to see ample opportunity to raise capital from institutional investors. We've expanded our capabilities with our private wealth platform and our wealth solutions business.

Connor David Teskey: These sectors will require over 200 trillion dollars of capital over the next 30 years, creating significant growth opportunities as we create products and solutions to address these market needs.

Connor Teske: Second we have deliberately focused on expanding our ability to raise capital across multiple channels with every global investor base.

Connor David Teskey: While we continue to see ample opportunity to raise capital from institutional investors, we've expanded our capabilities with our private wealth platform and our wealth solutions business.

Connor Teske: We have expanded our capabilities with our Private Wealth Platform and our Wealth Solutions Business. While today they represent a modest portion of our overall fee-bearing capital, we expect both to be new engines for this next phase of growth. Starting with our Wealth Solutions business, Brookfield Reinsurance successfully closed its acquisition of AEL.

Connor David Teskey: While today they represent a modest portion of our overall fee-bearing capital, we expect both to be new engines for this next phase of growth, starting with our wealth solutions. Last week, Brookfield Reinsurance successfully closed its acquisition of AEL.

Connor David Teskey: While today they represent a modest portion of our overall fee bearing capital we expect both to be new engines for this next phase of growth.

Connor Teske: Starting with our wealth solutions.

Connor David Teskey: Last week.

Connor David Teskey: Brookfield reinsurance successfully closed its acquisition of Aes.

Connor David Teskey: This transaction significantly enhances its wealth platform and is expected to accelerate its future growth. We now manage nearly $90 billion of insurance fee-bearing capital on behalf of Brookfield Reinsurance, including approximately $50 billion of assets that came with the AEL acquisition. These new assets will be subject to an investment management agreement and will provide us with an incremental $125 million of fee revenues each year. As Brookfield Reinsurance continues to grow its assets, we expect our fees will grow as well.

Connor Teske: This transaction significantly enhances its wealth platform and is expected to accelerate its future growth. We now manage nearly $90 billion of insurance fee-bearing capital on behalf of Brookfield Reinsurance, including approximately $50 billion of assets that came with the AEL acquisition. These new assets will be subject to an investment management agreement and will provide us with an incremental $125 million of fee revenues each year. As Brookfield Reinsurance continues to grow its assets, we expect our fees will grow as well.

Connor David Teskey: This transaction significantly enhances its wealth platform and is expected to accelerated future growth.

Connor David Teskey: We now manage nearly 900 bps, sorry, we now manage nearly $90 billion of insurance fee bearing capital on behalf of Brookfield reinsurance, including approximately $50 billion of assets that came with the ADL acquisition.

Connor David Teskey: These new assets will be subject to an investment management agreement and will provide us with an incremental $125 million of fee revenues each year.

Connor David Teskey: As Brookfield reinsurance continues to grow its assets, we expect our fees will grow as well.

Connor David Teskey: We also expect that Brookfield's wealth platform will soon write 15 to 20 billion dollars of annuities annually, making it one of the largest annuity platforms within the United States. And because in recent years we have been investing in our insurance capabilities ahead of such growth, we are well prepared for this new $50 billion mandate of capital, and we will be able to deploy it very efficiently. Our Wealth Solutions Strategy is focused on managing capital to meet the unique needs of insurance companies. We earn fee-related revenues for our services, but we do not take on any of the assets, liabilities, or generate spread-related earnings from these investments.

Connor Teske: We also expect that Brookfield's wealth platform will soon write $15 to $20 billion of annuities annually, making it one of the largest annuity platforms within the United States, and because in recent years we have been investing in our insurance capabilities ahead of such growth, we are well prepared for this new $50 billion mandate of capital, and we will be able to deploy it very efficiently. Our wealth solution strategy is focused on managing capital to meet the unique needs of insurance companies. We earn fee-related revenues for our services, but we do not take on any of the assets, liabilities, or generate spread-related earnings from these investments.

Connor David Teskey: We also expect that Brookfield wealth platform will soon right, 15% to $20 billion of annuities annually, making it one of the largest annuity platforms within the United States.

Connor Teske: And because in recent years, we have been investing in our insurance capabilities ahead of such growth. We are well prepared for this new $50 billion mandate of capital and we will be able to deploy it very efficiently.

Connor David Teskey: Our wealth solution strategy is focused on managing capital to meet the unique needs of insurance companies.

Connor David Teskey: We arent fee related revenues for our services, but we do not take on any of the assets liabilities or generate spread related earnings from these investments.

Connor David Teskey: However, beyond a growing fee revenue stream, our Wealth Solutions business also gives us a pocket of capital that is seeking credit opportunities, including investment grade, at scale, which will allow us to deploy capital in new and innovative ways. We will continue to expand and enhance our capabilities to serve our insurance clients and expect that this will attract additional third-party insurance capital to our business. Now turning to Brookfield Oak Tree Wealth Solutions.

Connor Teske: However, beyond a growing fee revenue stream, our Wealth Solutions business also gives us a pocket of capital that is seeking credit opportunities, including investment grade, at scale, which will allow us to deploy capital in new and innovative ways. We will continue to expand and enhance our capabilities to serve our insurance clients and expect that this will attract additional third-party insurance capital to our business. Now turning to Brookfield Oak Tree Wealth Solutions.

Connor David Teskey: However, beyond the growing fee revenue stream, our wealth solutions business also gives us a pocket of capital that is seeking credit opportunities, including investment grade at scale, which will allow us to deploy capital in new and innovative ways.

Connor David Teskey: We will continue to expand and enhance our capabilities to serve our insurance clients and expect that this will attract additional third party insurance capital to our business.

Connor David Teskey: Now turning to Brookfield, Brookfield Oaktree wealth solutions.

Connor Teske: Three years ago, we combined our private wealth presence alongside OakTree's team to create Brookfield OakTree Wealth Solutions, a business dedicated to delivering our premier alternative investment products to wealth managers worldwide. Since then, we have methodically scaled the business. Today, the team includes 150 professionals in 10 countries, spanning critical functions vital to fundraising, including supporting intermediaries and advisors.

Connor David Teskey: Three years ago, we combined our private wealth presence alongside OakTree's team to create Brookfield OakTree Wealth Solutions, a business dedicated to delivering our premier alternative investment products to wealth managers worldwide. Since then, we have methodically scaled the business. Today, the team includes 150 professionals in 10 countries, spanning critical functions vital to fundraising, including supporting intermediaries and advisors.

Connor David Teskey: Three years ago, we combined our private wealth presence alongside Oaktree team to create Brookfield Oaktree wealth solutions.

Connor David Teskey: Business dedicated to delivering our premier alternative investment products to wealth managers worldwide.

Connor David Teskey: Since then we have methodically scaled the business today. The team includes a 150 professionals in 10 countries spanning critical functions vital to fundraising, including supporting intermediaries and advisors.

Connor Teske: Our global efforts have resulted in relationships with nearly 50 wealth managers where we have placed over 100 private and public market solutions, including rapidly growing strategies like our private wealth-focused Brookfield Infrastructure Income Strategy and Oak Tree Strategic Credit Fund. This success capitalises on our long-term proven track record as a best-in-class alternative asset manager. As we embark on our next stage of growth, we are building from a position of strength as we now offer individual investors a full suite of alternative investments across each of our strategies, as the desire to increase allocation to alternatives for individual investors grows and should follow a similar course that alternatives have had for institutional investors over the last 20 years.

Connor David Teskey: Our global efforts have resulted in relationships with nearly 50 wealth managers, where we have placed over 100 private and public market solutions, including rapidly growing strategies like our private wealth-focused Brookfield Infrastructure Income Strategy and Oak Tree Strategic Credit Fund. This success capitalises on our long-term proven track record as a best-in-class alternative asset manager. As we embark on our next stage of growth, we are building from a position of strength as we now offer individual investors a full suite of alternative investments across each of our strategies, as the desire to increase allocation to alternatives for individual investors grows and should follow a similar course that alternatives have had for institutional investors over the last 20 years.

Connor David Teskey: Our global efforts our global efforts have resulted in relationships with nearly 50 wealth managers, where we have placed over 100, private and public market solutions, including rapidly growing strategies like our private wealth focused Brookfield infrastructure income strategy.

Connor David Teskey: And Oaktree strategic credit fund.

Connor David Teskey: This success capitalizes on our long term proven track record as the best in class alternative asset manager.

Connor David Teskey: As we embark on our next stage of growth. We are building from a position of strength as we now offer individual investors a full suite of alternative investments across each of our strategies.

Connor David Teskey: As the desire to increase allocation to alternatives for individual investors grows and should follow a similar course that alternatives have had for institutional investors over the last 20 years, we will continue to scale this business.

Connor David Teskey: We will continue to scale this business. Last year alone, the company raised $7 billion in capital, and we're just getting started. With many tailwinds at our backs, we are on pace to raise $12 to $15 billion annually through this channel over the medium term. Thirdly, our organization is centered around building and operating businesses and assets that form the backbone of the global economy. However, the global economy is always evolving; of the more than $925 billion of assets that we manage, nearly half are in sectors that didn't exist in scale 20 years ago, from fiber, telecom towers, and data centers to wind, solar, and digital payments.

Connor Teske: We will continue to scale this business. Last year alone, the company raised $7 billion in capital, and we're just getting started. With many tailwinds at our backs, we are on pace to raise $12-15 billion annually through this channel over the medium term. Thirdly, our organization is centered around building and operating businesses and assets that form the backbone of the global economy. However, the global economy is always evolving; of the more than $925 billion of assets that we manage, nearly half are in sectors that didn't exist in scale 20 years ago, from fiber, telecom towers, and data centers to wind, solar, and digital payments.

Connor David Teskey: Last year alone the business raised $7 billion in capital and we're just getting started with many tail winds at our back we are on pace to raised 12% to $15 billion annually through this channel over the medium term.

Connor David Teskey: Thirdly.

Connor David Teskey: Our organization is centered around building and operating businesses and assets that form the backbone of the global economy.

Connor David Teskey: However, the global economy is always evolving.

Connor David Teskey: Of the more than $925 billion of assets that we manage nearly half are in sectors that didn't exist in scale 20 years ago.

Connor David Teskey: From fiber telecom towers, and data centers to wind solar and digital payments.

Connor David Teskey: Last quarter, we spoke about the importance of our focus on product innovation and development to meet the needs of our clients. We are seeing the benefits of that at work as we expect to be raising capital for a record number of complementary strategies this year, with funds launching across all of our verticals. And fourth, and lastly, we have made investments in and built partnerships with best-in-class managers that have enabled us to expand our capabilities and serve our clients in more ways.

Connor Teske: Last quarter, we spoke about the importance of our focus on product innovation and development to meet the needs of our clients. We are seeing the benefits of that at work as we expect to be raising capital for a record number of complementary strategies this year, with funds launching across all of our verticals. And fourth, and lastly, we have made investments in and built partnerships with best-in-class managers that have enabled us to expand our capabilities and serve our clients in more ways.

Connor David Teskey: Last quarter, we spoke about the importance.

Connor David Teskey: Of our focus on product innovation and development to meet the needs of our clients.

Connor David Teskey: We are seeing the benefits of that at work as we accept to be raising capital for a record number of complementary strategies. This year with funds launching across all of our verticals.

Connor David Teskey: And fourth and lastly, we have made investments in and built partnerships with best in class managers that has enabled us to expand our capabilities and serve our clients in more ways.

Connor David Teskey: We acquired an additional 5% interest in Oaktree in April, bringing our ownership stake to 73% today. We also announced an agreement to acquire a 51% interest in Castle Lake, a leading asset-based private credit manager focused on aviation and other forms of specialty finance with $22 billion of assets under management. Our investment is projected to generate an additional $40 million in FRE within the next year, with the option for us to increase our ownership over time.

Connor Teske: We acquired an additional 5% interest in Oaktree in April, bringing our ownership stake to 73% today. We also announced an agreement to acquire a 51% interest in Castle Lake, a leading asset-based private credit manager focused on aviation and other forms of specialty finance with $22 billion of assets under management. Our investment is projected to generate an additional $40 million in FRE within the next year, with the option for us to increase our ownership over time.

Connor David Teskey: We acquired an additional 5% interest in Oaktree in April, bringing our ownership stake to 73% today.

Connor David Teskey: We also announced an agreement to acquire a 51% interest in Catholic a leading asset based private credit manager focused on aviation and other forms of specialty finance with $22 billion of assets under management.

Connor David Teskey: Our investment is projected to generate an additional $40 million of FRE within the next year with the option for us to increase our ownership over time.

Connor David Teskey: As we have done with other similar transactions, we plan to work in partnership with the Castle Lake team to support the growth of their franchise while looking for opportunities where our broader franchise can add value for our clients for years to come. Before I turn it over to Bahir to go through our financial and operating results for the quarter, I'll wrap up by saying we have a number of tailwinds behind our business that continue to give us confidence to reach our targets of doubling distributable earnings and reaching over $1 trillion of fee-bearing capital over the next four years. Bahir?

Connor Teske: As we have done with other similar transactions, we plan to work in partnership with the Castle Lake team to support the growth of their franchise while looking for opportunities where our broader franchise can add value for our clients for years to come. Before I turn it over to Bahir to go through our financial and operating results for the quarter, I'll wrap up by saying we have a number of tailwinds behind our business that continue to give us confidence to reach our targets of doubling distributable earnings and reaching over $1 trillion of fee-bearing capital over the next four years. Bahir?

Connor David Teskey: As we have done with other similar transactions, we plan to work in partnership with Castle Lake with the Capsulate team to support the growth of their franchise, while looking for opportunities for where our broader franchise can add value for our clients for years to come.

Bahir: Before I turn it over to be here to go through our financial and operating results for the quarter will wrap up by saying we have a number of tailwind behind our business that continue to give us confidence to reach our targets of doubling distributable earnings and reaching over one trillion of fee bearing capital over the next four years.

Connor David Teskey: Sure.

Bahir Manios: Great. Thank you, Connor, and good morning everybody. As Connor mentioned, I'll focus my remarks on our financial performance over the quarter and hand it off to Hadley, who will take you through the update on fundraising activity. So first, on results, fee-related earnings, or FRE, in the first quarter were $552 million, and $2.2 billion over the last 12 months. Distributable Earnings, or DE, for the quarter were $547 million, and $2.2 billion for the last 12 months.

Bahir Manios: Great. Thank you, Connor, and good morning, everybody. As Connor mentioned, I'll focus my remarks on our financial performance over the quarter and hand it off to Hadley, who will take you through the update on fundraising activities. So first, on results, fee-related earnings, or FRE, in the first quarter were $552 million, and $2.2 billion over the last 12 months. Distributable Earnings, or DE, for the quarter were $547 million, and $2.2 billion for the last 12 months.

Bahir: Great. Thank you Conor and good morning, everybody.

Bahir Manios: As Conor mentioned I'll focus my remarks on our financial performance over the quarter and hand, it off to Hadley, who will take you through the update on fundraising activities. So first on results fee related earnings or FRE in the first quarter were $552 million and $2 2 billion over the last.

Hadley: 12 months distributable.

Speaker Change: <unk> earnings are day for the quarter were $547 million and $2 2 billion for the for the last 12 months.

Bahir Manios: Our results for the period reflected the strong fundraising that both Bruce and Connor touched on earlier in their remarks. We generated over 15% growth in our fee-bearing capital within our flagship vehicles, private credit, and insurance strategies over the last 12 months, and that drove a 15% growth in our fee revenues from these areas in the LTM or last 12 months period. These very positive results were, however, offset by lower fees associated with our permanent capital vehicles and transaction fees that were also lower compared to the prior year.

Bahir Manios: Our results for the period reflected the strong fundraising that both Bruce and Connor touched on earlier in their remarks. We generated over 15% growth in our fee-bearing capital within our flagship vehicles, private credit, and insurance strategies over the last 12 months. And that drove a 15% growth in our fee revenues from these areas in the LTM for the last 12 months. These very positive results were, however, offset by lower fees associated with our permanent capital vehicles and transaction fees that were also lower compared to the prior year.

Hadley: Our results for the period reflected the strong fundraising that both Bruce and Connor touched on earlier in their remarks, we generated over 15% growth in our fee bearing capital within our flagship.

Bahir Manios: Vehicles.

Bahir Manios: Private credit and insurance strategies over the last 12 months and that drove a 15% growth in our fee revenues from these areas in the LTM or last 12 months period.

Bahir Manios: These very positive results were however, offset by lower fees associated with our permanent capital vehicles and transaction fees that were also lower compared to the prior year.

Bahir Manios: Our permanent capital vehicle stock prices were lower as that period ended compared to the prior periods, despite releasing very strong earnings results and recent increases in the dividends paid by both our infrastructure and renewable companies, Brookfield Infrastructure Partners and Brookfield Renewable Partners.

Bahir Manios: Our permanent capital vehicle stock prices were lower as that period ended compared to the prior periods, despite releasing very strong earnings results and recent increases in the dividends paid by both our infrastructure and renewable companies, Brookfield Infrastructure Partners and Brookfield Renewable Partners.

Bahir Manios: Our permanent capital vehicles stock prices were lower as that period and compared to the prior periods. Despite releasing very strong earnings results and recent increases in the dividends paid by both our infrastructure and renewable companies Brookfield infrastructure partners in Brookfield renewable partners.

Bahir Manios: We believe each one of our companies is well positioned in any environment and their trading prices will eventually rebound and be more reflective of the very strong underlying fundamentals and performance for those companies. During the quarter, we raised $20 billion of capital, 10 billion of which we had previously announced on our February earnings call. With that, our fee-bearing capital grew at period end to almost $460 billion, which is up $27 billion or 6% compared to the prior year.

Bahir Manios: We believe each one of our companies is well positioned in any environment and their trading prices will eventually rebound and be more reflective of the very strong underlying fundamentals and performance for those companies. During the quarter, we raised $20 billion of capital, $10 billion of which we had previously announced on our February earnings call. With that, our fee-bearing capital grew at period end to almost $460 billion, which is up $27 billion or 6% compared to the prior year.

Bahir Manios: We believe each one of our companies are well positioned in any environment and theyre trading prices will eventually rebound and be more reflective of the very strong underlying fundamentals and performance for those companies.

Bahir Manios: During the quarter, we raised $20 billion of capital.

Bahir Manios: $1 billion of which we had previously announced on our February earnings call.

Bahir Manios: With that our fee bearing capital grew at period end to almost 460 billion, which is up 27 billion or 6% compared to the prior year.

Bahir Manios: Our fee-bearing capital benefited from very strong inflows and capital deployed during the year, although this was somewhat offset by capital we returned to clients and market valuations of our permanent capital vehicle. Our fee-bearing capital will increase by $50 billion with the recently closed asset management mandate from American Equity Life. Nexon margins for the last 12 months have remained stable and between 56 to 57% but are poised to improve across each of our businesses as revenue growth should outpace costs.

Bahir Manios: Our fee-bearing capital benefited from very strong inflows and capital deployed during the year, although this was somewhat offset by capital we returned to clients and market valuations of our permanent capital vehicle. Our fee-bearing capital will increase by $50 billion with the recently closed Asset Management Mandate from American Equity Life. Nexon margins for the last 12 months have remained stable at between 56-57% but are poised to improve across each of our businesses as revenue growth should outpace costs.

Bahir Manios: Our fee bearing capital benefited from very strong inflows and capital deployed during the year.

Bahir Manios: This was somewhat offset by capital, we returned to clients and market valuations of our permanent capital vehicles.

Bahir Manios: Our fee bearing capital will increase by $50 billion with the recently closed.

Bahir Manios: Asset management mandate from American equity life.

Bahir Manios: Next on margins for the last 12 months, they've remained stable and between 56% to 57%, but are poised to improve across each of our businesses as revenue growth should outpace costs.

Bahir Manios: As we've previously discussed, Expense growth in our businesses is expected to slow as much of the investment in expanding capabilities across our platform has been made over the past year or two. To that end, direct cost growth moderated quite significantly this quarter compared to the prior year.

Bahir Manios: As we've previously discussed, expense growth in our businesses is expected to slow as much of the investment in expanding capabilities across our platform has been made over the past year or two. To that end, direct cost growth moderated quite significantly this quarter compared to the prior year.

Bahir Manios: As was previously discussed expense growth in our businesses is expected to slow as much of the investment in expanding capabilities across our platform has been made over the past year or two.

Bahir Manios: To that end direct cost growth moderated quite significantly this quarter compared to the prior year Comparables.

Bahir Manios: At the same time, revenues will benefit from our significant capital-raising initiatives over the past year, the additional $50 billion of AEL capital, which will contribute at least $125 million of annualized base fee revenues and potentially a rebound in the prices of our publicly listed affiliates. I'll now briefly touch on our dry powder. Today, we sit on over $100 billion of dry powder available for deployment, and we have been actively putting this capital to work.

Bahir Manios: At the same time, revenues will benefit from our significant capital raising initiatives over the past year, the additional $50 billion of AEL capital, which will contribute at least $125 million of annualized base fee revenues, and potentially a rebound in the prices of our publicly listed affiliates. I'll now briefly touch on our dry powder. Today, we sit on over $100 billion of dry powder available for deployment, and we have been actively putting this capital to work.

Bahir Manios: At the same time revenues will benefit from our significant capital raising initiatives over the past year the.

Bahir Manios: The additional $50 billion of capital, which will contribute at least $125 million of annualized base fee revenues and potentially a rebound in the prices of our publicly listed affiliates.

Bahir Manios: I'll now briefly touch on our dry powder.

Bahir Manios: Today, we sit on over $100 billion of dry powder available for deployment and have been actively putting this capital to work.

Bahir Manios: We deployed an additional $11 billion in the first quarter, with over half of that going into credit products, as we continue to see the current environment being very favorable for credit investment. Our liquidity continues to be very strong, with $2.6 billion of cash and equivalents on our balance sheet as that period ends. And, as a reminder, we operate with zero debt at the corporate level.

Bahir Manios: We deployed an additional $11 billion in the first quarter, with over half of that going into credit products, as we continue to see the current environment being very favorable for credit investment. Our liquidity continues to be very strong, with $2.6 billion of cash and equivalents on our balance sheet as that period ends. And, as a reminder, we operate with zero debt at the corporate level.

Bahir Manios: We deployed an additional 11 billion in the first quarter with over half of that going into credit products. As we continue to see the current environment being very favorable for credit investing.

Bahir Manios: Our liquidity continues to be very strong with $2 6 billion of cash and equivalents on our balance sheet as at period end and as a reminder, we operate with zero debt.

Bahir Manios: At Corp.

Bahir Manios: Corporate level.

Bahir Manios: And lastly, before turning the call over to Hadley, I'm pleased to confirm that the Board of Directors has declared a dividend of $0.38 per share for the first quarter of 2024, payable on June 28th to the shareholders of record as at the close of business on May 31st. And so, with that, I'll turn it over to Hadley. I've had the pleasure of working with Hadley since she joined our infrastructure group in 2015, and it's a great honor for me to introduce her as my successor in this role.

Bahir Manios: And lastly, before turning the call over to Hadley, I'm pleased to confirm that the Board of Directors has declared a dividend of $0.38 per share for the first quarter of 2024, payable on June 28th to the shareholders of record as at the close of business on May 31st. And so, with that, I'll turn it over to Hadley. I've had the pleasure of working with Hadley since she joined our infrastructure group in 2015, and it's a great honor for me to introduce her as my successor in this role.

Speaker Change: And lastly, before turning the call over to Hadley I am pleased to confirm that the board of directors has declared a dividend of 38 per share for the first quarter of 2024 payable on June 28 to the shareholders of record at the close of business on May 31.

Bahir Manios: Hadley is extremely well known in the financial community and brings tremendous experience and financial expertise to the role. As for me, it's been an incredible 20-year career at Brookfield. I've really enjoyed my time as CFO of the company and, prior to that, as CFO of Brookfield Infrastructure Partners. It's been a great experience, and I feel so fortunate to have had the opportunity to work and interact with many of you on the line.

Bahir Manios: And so with that I'll turn it over to Hadley.

Hadley: Had the pleasure of working with hardly since she joined our infrastructure group in 2015, and it's a great honor for me to introduce her as my successor in this role had.

Bahir Manios: Hadley is extremely well known in the financial community and brings tremendous experience and financial expertise to the role. As for me, it's been an incredible 20-year career at Brookfield. I've really enjoyed my time as CFO of the company and, prior to that, as CFO of Brookfield Infrastructure Partners. It's been a great experience, and I feel so fortunate to have had the opportunity to work and interact with many of you on the line, and I sincerely thank you for all your support along the way. I look forward to seeing many of you in the coming months as I continue to transition Hadley into the CFO seat. And so, with that, I'll hand it over to Hadley.

Bahir Manios: <unk> is extremely well known in the financial community and brings tremendous experience and financial expertise to the role.

Bahir Manios: As for me, it's been an incredible 20 year career at Brookfield.

Bahir Manios: Really enjoyed my time as CFO of the company and prior to that CFO Brookfield infrastructure partners. It's.

Bahir Manios: It's been a great experience and I feel so fortunate to have had the opportunity to work and interact with many of you on the line and I sincerely. Thank you for all your support along the way.

Bahir Manios: And I sincerely thank you for all your support along the way. I look forward to seeing many of you in the coming months as I continue to transition Hadley into the CFO seat. And so, with that, I'll hand it over to Hadley.

Bahir Manios: I look forward to seeing many of you in the coming months as I continued to transition Hadley into the CFO seat and so with that I'll hand, it over to Hadley.

Hadley Peer-Marshall: Thank you, Bahir. I too would like to thank you for your service and support, and I'm thrilled to be taking on this role at such an exciting time of growth for our business. Let me start things off by providing some more details on the capital we raised in the first quarter. In summary, it was a strong first quarter for capital raising, and we're optimistic about the year ahead since we have four flagships in the market.

Hadley Peer Marshall: Thank you, Bahir. I, too, would like to thank you for your service and support, and I'm thrilled to be taking on this role at such an exciting time of growth for our business. Let me start things off by providing some more details on the capital we raised in the first quarter. In summary, it was a strong first quarter for capital raising, and we're optimistic about the year ahead since we have four flagships in the market.

Speaker Change: Can you be here.

Hadley Peer Marshall: I would like to thank you for your service and support and I'm thrilled to be taking on this role at such an exciting time of growth for our business.

Hadley Peer Marshall: Let me start things off by providing some more details on the capital we raised in the first quarter.

Hadley Peer Marshall: In summary, it was a strong first quarter for capital raising and we're optimistic about the year ahead. Since we have four flagships in the market. We have the largest number of complimentary funds, we've ever had in or coming to market.

Hadley Peer Marshall: We have the largest number of complementary funds we've ever had in or coming to market, and a rapidly growing insurance solutions business. Within our infrastructure business, we raised a little over $3 billion, including around $2 billion of capital for our super core infrastructure strategy as part of a follow-on acquisition of First Energy. Our Infrastructure Wealth Solutions product, Brookfield Infrastructure Income, continues to see robust demand, raising an additional $600 million in the first quarter and bringing assets under management to over $2 billion.

Hadley Peer Marshall: Rapid scaling insurance solutions business.

Hadley Peer Marshall: Within our infrastructure business, we raised a little over $3 billion, including around $2 billion of capital for our Super core infrastructure strategy as part of a follow on acquisition of first energy.

Hadley Peer Marshall: Our infrastructure well solutions product Brookfield infrastructure income continues to see robust demand raising an additional $600 million in the first quarter and bringing assets under management to over $2 billion.

Hadley Peer Marshall: For our Renewable Power & Transition business, we held a first close for the second vintage of our flagship Global Transition Fund at $10 billion, including $1.2 billion of capital raised in the first quarter. On the back of good momentum, we expect to hold a final close later this year.

Hadley Peer Marshall: For a renewable power and transition business, we held the first close for the second vintage of our flagship global transition fund at 10 billion, including $1 2 billion of capital raised in the first quarter.

Hadley Peer Marshall: On the back of good momentum, we expect to hold a final close later this year.

Hadley Peer Marshall: In addition, we launched our Catalytic Transition Fund. This fund was previously announced at COP28 with a billion-dollar anchor commitment from our long-term partner, Altera, and we anticipate the first close for this fund later this year. Within private equity, we raised $1.5 billion in the quarter and also recently launched several complementary strategies, including a Middle East fund and a strategy for financial infrastructure investment. In real estate, we held a first close for the fifth vintage of our flagship opportunistic real estate fund at over $8 billion, and we also anticipate holding a final close later in 2024.

Hadley Peer Marshall: In addition, we launched our catalytic transition fund this fund with previously announced at Cop 28, with a billion dollars anchor commitment from a long term partner Alterra.

Hadley Peer Marshall: And we anticipate first close for this fund later this year.

Hadley Peer Marshall: Within private equity, we raised $1 5 billion in the quarter and also recently launched several complementary strategies, including a middle East fund in a strategy for financial infrastructure investing.

Hadley Peer Marshall: In real estate, we held the first close for the fifth vintage of our flagship opportunistic real estate fund at over $8 billion and we also anticipate holding a final close later in 2024.

Hadley Peer Marshall: Finally, in credit, we continue to see strong fundraising momentum, raising nearly $6 billion within Oaktree Funds in the quarter, including $1 billion within our Sponsored Credit Business and nearly $1 billion within the 12th vintage of our Opportunistic Credit Fund. Overall, capital was raised across more than a dozen credit strategies this quarter, and we anticipate launching our seventh real estate debt fund and our fourth infrastructure debt fund later in the year. Within our insurance solution business, we also raised $2 billion, and we are expecting this to grow further throughout the year.

Hadley Peer Marshall: Finally in credit we continue to see strong fund raising momentum raising nearly $6 billion within oaktree funds in the quarter, including $1 billion within our sponsor credit business and nearly 1 billion within the 12 vintage of our opportunistic credit fund.

Hadley Peer Marshall: Overall capital was raised across more than a dozen credit strategies this quarter and we anticipate launching our seventh real estate debt fund and our fourth infrastructure debt fund later in the year.

Hadley Peer Marshall: Within our insurance solutions business. We also raised $2 billion and are expecting this scaling further throughout the year.

Hadley Peer Marshall: I wanted to spend some time covering our credit group in particular, as this is an area I have focused on personally for many years, and more importantly, is one of the parts of our franchise where we see significant growth ahead. One of the benefits of being large, global, and diversified is that we are in constant communication with and serve a wide array of clients, including the largest and most sophisticated institutional investors in the world, some of the biggest insurance companies in the world, as well as individual and high net worth investors. Over the past year or so, what our clients have been telling us has been resoundingly clear.

Hadley Peer Marshall: I wanted to spend some time covering our credit group in particular as this is an area of focus on personally for many years and more importantly is one of the parts of our franchise, where we see significant growth ahead.

Hadley Peer Marshall: One of the benefits of being large global and diversified is that we are in constant communication with and serve a wide array of clients, including the largest and most sophisticated institutional investors in the world.

Hadley Peer Marshall: Some of the biggest insurance companies globally, as well as individual and high net worth investors.

Hadley Peer Marshall: Over the past year, or so where clients have been telling us has been resoundingly clear.

Hadley Peer Marshall: They want to meaningfully increase their allocations to credit, specifically private credit. Fortunately for us, our credit business can serve those clients' needs given its breadth of product offerings and brand as a market leader. To that end, we recently announced the consolidation of all of our credit businesses and strategies under a newly formed credit group, which today totals nearly $300 billion of assets under management, inclusive of the $50 billion AEL mandate. As of March 31, we've managed $180 billion of fee-bearing capital, which generates annualized fee revenues of $1.2 billion and growing.

Hadley Peer Marshall: They want to meaningfully increase their allocations to credit specifically private credit.

Hadley Peer Marshall: Fortunately for us our credit business Conservatives clients' needs given its breadth of product offerings and brand as a market leader.

Hadley Peer Marshall: Did that and we recently announced the consolidation of all of our credit businesses and strategies under our newly formed credit group, which today totals nearly $300 billion of assets under management inclusive of the $50 billion of ELD mandate.

Hadley Peer Marshall: As of March 31, we made 180 billion of fee bearing capital, which generate annualized fee revenues of $1 2 billion and growing.

Hadley Peer Marshall: Forty-five percent of this capital is raised to private and opportunistic credit strategies, which account for over 70 percent of our fee revenue. We have a broad and growing product offering from various private, opportunistic, structured, and liquid credit strategies for our institutional insurance and individual clients to choose from based on their financial goals, and we believe that the best is yet to come. We continue to broaden our product offerings and enhance our deployment capabilities for our clients.

Hadley Peer Marshall: 45% of this capital is raised to private and opportunistic credit strategy, which account for over 70% of our fee revenues.

Hadley Peer Marshall: We have a broad and growing product offering from various private opportunistic structured and liquid credit strategies, Brian digital insurance and individual clients to choose from based on their financial goals.

Hadley Peer Marshall: And we believe that the best is yet to come.

Hadley Peer Marshall: We continue to broaden our product offerings enhance our deployment capabilities for our clients.

Hadley Peer Marshall: In fact, the three strategic transactions we discussed, AEL, Oak Tree, and Castle Lake, each mark an exciting next step in significantly scaling our global credit franchise. We have also enhanced our insurance solution disclosure given the growth of this fundraising channel. As a reminder, our Insurance Solutions Channel is focused on large mandates that can deliver insurance companies their financial objectives. The capital we have raised so far has been predominantly from Brookfield Reinsurance; however, we expect to bring in additional third-party insurance companies as well.

Hadley Peer Marshall: In fact, the three strategic transactions, we discussed a L. L. Three and cassoulet each marked an exciting next step in significantly scaling our global credit franchise.

Hadley Peer Marshall: We also enhanced our insurance solution disclosure given the growth of the fund raising channels.

Hadley Peer Marshall: As a reminder, our insurance solution channel its focus on large mandates that can deliver to insurance companies their financial objectives.

Hadley Peer Marshall: The capital we've raised so far has been predominantly from Brookfield reinsurance. However, we expect to bring in additional third party insurance companies as well.

Hadley Peer Marshall: Our relationship with these clients is strong, and, in turn, they are attracted to Brookfield's product offerings and partnership capabilities. With the $50 billion of additional capital we are now managing from the AAL mandate, our total assets managed through our insurance solutions channel are $86 billion, and our expectation is that this will grow by $15 to $20 billion per year. As of March 31st, 51% of this capital was invested in high-grade liquid credit strategies.

Hadley Peer Marshall: Our relationship with these clients is strong and in turn they are attracted to Brookfield product offerings and partnership capabilities.

Hadley Peer Marshall: With the $50 billion of additional capital, we're now managing from the ELD mandate or total assets minutes through our insurance solutions channel is 86 billion and our expectation is this will grow by 10, 15% to $20 billion per year.

Hadley Peer Marshall: As of March 31, 51% as capital is invested in high grade liquid credit strategies.

Hadley Peer Marshall: 41% of investment grade credits and 8% of private funds. As a reminder, we earn a 25 basis point fee for the total amount of capital we manage under our long-term investment management agreement and then additional standard fees for any capital allocated to our private funds. I'll just wrap up by saying, as you've heard from the team today, we are embarking on a year filled with significant initiatives and opportunities. I'm eager to contribute to our continued success and look forward to meeting many of you in the quarters to come. With that operator, we can open it up to questions. Thank you.

Hadley Peer Marshall: 41% investment grade credits and 8% in private funds.

Hadley Peer Marshall: As a reminder, we earned a 25 basis point fee for the total amount of capital we manage under a long term investment management agreement and then standard.

Hadley Peer Marshall: Standard fees for any capital allocated to our private fund.

Hadley Peer Marshall: I'll, just wrap up by saying as you've heard from the team today, we are embarking on a year filled with significant initiatives and opportunities.

Hadley Peer Marshall: Eager to contribute to our continued success and look forward to meeting many of you in the quarters to come with that operator, we can open it up to questions.

Operator: Thank you. And as a reminder, if you have a question, please press star 11 on your telephone. If your question has been answered or you want to remove yourself from the queue, please press star 11 again. Our first question comes from the line of Sherilyn Radbourne with TD Cowan. Your line is now open.

Speaker Change: Thank you and as a reminder, if you have a question. Please press star one on your telephone.

Cherilyn Radbourne: My question has been answered or you want to remove yourself from the queue. Please press star one again.

Operator: Okay.

Cherilyn Radbourne: Our first question comes from the line of Cherilyn Radbourne with TD Cowen. Your line is now open.

Cherilyn Radbourne: Thanks very much and good morning. Firstly, we've been getting some questions from clients on the fund performance track records this morning, and those seem to have flattened down slightly quarter over quarter. So, I was hoping you could give us some color on your mark and whether you would see that as a transitory issue with the market backdrop improving.

Cherilyn Radbourne: Thanks, very much and good morning.

Cherilyn Radbourne: Firstly, we've been getting questions from clients on fund performance track Records. This morning, and those seem to be flat to down slightly quarter over quarter. So I was hoping you could give us some color on your mark and whether you would see that as a transitory issue with the market backdrop improving.

Connor David Teskey: Good morning, Sherilyn. Thanks for the question. This is, in our minds, absolutely, as you say, temporary in nature. We are always very conservative with our marks, and with some of the market volatility in Q1, we obviously reflect that in our financial positions. But it will come as a surprise to no one, just the increasing strength and momentum in the financial markets. We're seeing the strategic bid come back from corporates, we're seeing banks lending an increasing amount, we're seeing incredible liquidity in the system, and we're seeing the bid-ask between buyers and sellers increasingly shrink.

Speaker Change: Good morning, Cherilyn. Thanks for the question.

Connor David Teskey: If it is in our minds, absolutely as you say temporary in nature.

Connor David Teskey: Are always very conservative with our marks and with some of the market volatility.

Connor David Teskey: In Q1, we obviously reflect that in our financial position, but it will come as a surprise to no one Jeff the increasing strength and momentum in the financial markets. We're seeing the strategic bid come back from corporate we're seeing banks lending and increasing amount.

Connor David Teskey: We're seeing incredible liquidity in the system and we're seeing the bid ask between buyers and sellers increasingly shrink so.

Connor David Teskey: So, we always position ourselves in a strong liquidity position, so we are never a forced seller during those temporary moments of volatility. But we would expect those marks to very quickly revert to in line or above our targets, and similar to our long-term track record.

Connor David Teskey: We always position ourselves in a strong liquidity position. So we are never.

Connor David Teskey: <unk> seller during those temporary moments of volatility, but we would expect those marks to very quickly revert to in line or above our targets and similar with our long term track record.

Connor David Teskey: Great, thank you. And then, shifting gears, could you give us some background on how the recent Castle Lake deal came together and, particularly, how that deal is structured between SAM and Brookfield Reinsurance?

Speaker Change: Great. Thank you.

Speaker Change: And then shifting gears could you give us some background on how the recent capsulate deal came together and particularly how that deal is structured between Bam and Brookfield reinsurance.

Connor David Teskey: Absolutely. We are thrilled with the announcement to be partnered with Castle Lake going forward. We've spent a great deal of time getting to know the company and the management team, and we think they will be very complementary to broader Brookfield and our existing credit franchise. Similar to how we have partnered with other affiliate managers in the past, we believe that within the Brookfield ecosystem, we can support and accelerate the growth of that franchise while at the same time expanding the product offering we can provide to our clients and LP partners.

Connor David Teskey: Absolutely.

Connor David Teskey: We are thrilled with the announcement to being partnered.

Connor David Teskey: With Castle Lake going forward.

Connor David Teskey: We've spent a great deal of time getting to know the company and the management team. We think they will be very complementary to broader Brookfield and our existing credit franchise and similar to how we have partnered with other affiliate managers in the past.

Connor David Teskey: We believe that within the Brookfield ecosystem, we can support and accelerate the growth of that franchise.

Connor David Teskey: Well at the same time, expanding the product offering we can provide to our clients and LP partners to answer your specific question around the breakdown between Brookfield asset management and Brookfield reinsurance.

Connor David Teskey: To answer your specific question around the breakdown between Brookfield Asset Management and Brookfield Reinsurance, Brookfield Asset Management will spend about $500 million upon closing a BAT transaction. That $500 million is broken down into about $350 million to acquire 51% of the FRE, and the remaining $150 million will be to support the business in acquiring a small portion of the business's carry and funding our proportionate share of the manager's GP stakes going forward.

Connor David Teskey: Brookfield asset management, we'll spend about $500 million upon closing of that transaction.

Connor David Teskey: That $500 million is broken down into about $350 million to acquire 51% of the FRE and the remaining $150 million will be to support the business and.

Connor David Teskey: And acquiring a small portion of the business as Carrie and funding our proportionate share of the manager's GP Stakes going forward it.

Connor David Teskey: It's important to recognize that the bulk of the $1.5 billion that was announced will come as an investment from Brookfield Reinsurance to support the growth of Tassel Lake going forward, but the investment from Brookfield Asset Management is about $500 million up front.

Connor David Teskey: It is important to recognize that the bulk of the $1 5 billion that was announced.

Connor David Teskey: As a investment from Brookfield reinsurance to support the growth of Capsulate going forward.

Connor David Teskey: But the investment from Brookfield asset management is about $500 million upfront.

Cherilyn Radbourne: That's my two. Thank you for the time.

Speaker Change: That's my two thank you for your time.

Operator: Thank you. Our next question comes from the line of Alexander Blostein with Goldman Sachs. Your line is now open.

Speaker Change: Thank you.

Alexander Blostein: Next question comes from the line of Alexander <unk> with Goldman Sachs. Your line is now open.

Alexander Blostein: Hi, good morning everyone. Thanks for the question and congratulations, Bahir, on your next endeavor. And welcome, Hadley, to the call. Good to hear from you.

Alexander Blostein: Hey, good morning, everyone. Thanks for the question and congrats Bahir to you on your next endeavor and welcome Hadley to the call good to hear from you.

Alexander Blostein: My question is around fundraising. So, you guys raised $20 billion in the quarter, and you suggested a number of times during the course of the call that that's likely to build as you go. I know you sort of backed away from being too specific with respect to, I guess, the $100 billion you talked about in the past and, you know, as things could slip, etc. But can you just help us frame, I guess, one: what is the kind of quarterly pace you expect to be at?

Alexander Blostein: My question is around fund raising so you guys raised $20 billion in the quarter and you suggested a number of times over the course of the call that that's likely to build as you progress I know you sort of backed away from being too specific with respect to I guess $100 billion you've talked in the past.

Alexander Blostein: Are your comments implying you expect to be north of 20, kind of on a quarterly or on an ongoing basis from here? And number two, with respect to the four flagships that are currently in the market, can you just give us the mark to market on the kind of expected sizing for these flagships and the client reception you're having on the demand side of things?

Alexander Blostein: As things could could slip et cetera, but can you just help us frame I guess, one what is the kind of quarterly pace you expect to be at or your comments imply that you expect to be north of 20% kind of on a quarterly run rate basis from here and then number two with respect to the four flagships that are currently in the market can you just give us the mark to market on kind of the expected.

Alexander Blostein: The sizing for these flagships and the client reception, you're having on the demand side of things.

Alexander Blostein: Yes.

Connor David Teskey: Great. Thanks, Alex.

Speaker Change: Great. Thanks, Alex I appreciate the question.

Connor David Teskey: The overarching comment we would make on fund raising is our sentiment around confidence in terms of fundraising hasnt changed at all obviously it was a tremendous quarter. In fact this was the best Q1 <unk>.

Connor David Teskey: I appreciate the question. The overarching comment we would make on fundraising is that our sentiment around confidence in terms of fundraising hasn't changed at all. Obviously, it was a tremendous quarter. In fact, this was the best Q1 fundraising quarter we've ever had. And in terms of the dynamics that we see driving our fundraising activity for the remainder of the year, they all stay very much intact. Three flagships that we expect to close, a record number of complementary funds, and a significantly larger ability to generate inflows from our insurance platform going forward.

Connor David Teskey: <unk> raising quarter, we've ever had and in terms of the dynamics that we see driving our fundraising activity for the remainder of the year.

Connor David Teskey: I'll stay very much intact, three flagships that we expect to close a record number of complementary funds and significantly larger ability to generate inflows from our insurance platform going forward.

Connor David Teskey: Hey.

Connor David Teskey: The one point I would just make on specific figures and timing is, given what we've seen to date, yes, things could change, but they could equally change to the upside in terms of them slipping. The momentum is very, very strong. To answer your two specific questions, maybe the one piece of guidance we would give on quarterly pace is that we do recognize that 2023, in terms of fundraising, was quite back-end loaded. We don't see as much of that dynamic this year.

Connor David Teskey: The one point I would just make on specific figures and timing is given what we've seen.

Connor David Teskey: To date.

Connor David Teskey: Yes, things could change, but they could equally change to the upside is in terms of them flipping the momentum is very very strong.

Connor David Teskey: To answer your two specific questions.

Connor David Teskey: The one piece of guidance, we would give on quarterly pace. If we do recognize that 2023 in terms of fundraising was quite back end loaded we don't see as much of that dynamic. This year, we do expect fund raising to be more balanced across the four quarters, obviously, it will accelerate a little bit towards.

Connor David Teskey: We do expect fundraising to be more balanced across the four quarters. Obviously, it will accelerate a little bit towards the back-end of the year, but we don't expect such a concentration in Q4 as we saw in 2023. And then just in terms of the flagship, within our business, this is where we're seeing incredible momentum. Our confidence and the reception of our transition strategy continues to be immense, best in class. We feel very confident in terms of closing up that fund at or above our targets this year.

Connor David Teskey: The back end of the year.

Connor David Teskey: But we don't expect such a concentration in Q4 as we saw in 2023 and then just in terms of the flagship.

Connor David Teskey: Within our business. This is where we're seeing incredible momentum.

Connor David Teskey: Our.

Connor David Teskey: The confidence and the reception of our transition strategy continues to be immense best in class, we feel very confident in terms of closing up that fund at or above our targets this year and particularly in our real estate flagship. This is where we're really seeing the market opening up and investors are seeing the ups.

Connor David Teskey: And particularly in our real estate flagship, this is where we're really seeing the market opening up, and investors are seeing the upside and the rebound in that asset class and looking to get an increasing amount of exposure. And then maybe just to finish on credit, it was very well highlighted in our quarterly results that credit was the biggest driver of our fundraising in Q1. And that is indicative of the support we are seeing across our credit franchise, including the flagships. And that's something we expect to see in the coming quarters as well.

Connor David Teskey: Side, and the rebound in that asset class and looking to get an increasing amount of exposure.

Connor David Teskey: And then maybe just to finish on credit.

Connor David Teskey: It was very well highlighted in our quarterly results that credit is the biggest driver of our fund raising in Q1 and that is indicative of the support we are seeing across our credit franchise, including the flagships and Thats something we expect to see in the coming quarters as well.

Alexander Blostein: Great. That's perfect. Thanks.

Connor David Teskey: Great.

Speaker Change: Perfect. Thanks.

Speaker Change: And then my second question is around the insurance business and appreciate the extra disclosure.

Alexander Blostein: And then my second question is around the insurance business, and I appreciate the extra disclosure in the slide deck. But I guess if we look at AEL, now that it's closed, how are you thinking about both the magnitude and timing of rotating some of AEL's assets to BAM and Oaktree-type credit strategies that will enable you to earn a higher fee on top of the IMA? And I guess when you kind of think about the platform broadly, now you mentioned $90 billion as a whole. What is the ultimate sub-advisory capacity do you see for the firm, again, in addition to IMA when it comes to that $90 billion?

Alexander Blostein: In the slide deck, but I guess, if you look at all now that it's closed how are you thinking about both the magnitude and timing of rotating some of assets too.

Alexander Blostein: To Bam and Oaktree kind of credit strategies that will enable you to earn a higher fee on top of the IMA and I guess when you kind of think about the platform broadly now you mentioned $90 billion as a whole kind of what is the ultimate sub advisory capacity do you see for the firm again in addition to IMA and when it comes to that $90 billion.

Connor David Teskey: Sure, and well, obviously, this will evolve over time. We want to be helpful and constructive here. I would say over the long term, we expect to deploy about a third of that capital into long-term private funds, maybe about another third into investment-grade credit, and maybe about another third into liquid credit. That's probably a good rule of thumb based on what we're seeing today. In terms of pace and ability to make those allocations, there are two things we would highlight here. It does take a little bit of time, but it's not that much.

Alexander Blostein: Sure.

Connor David Teskey: Well.

Connor David Teskey: Obviously this will evolve over time, we want to be helpful and constructive here I would say over the long term, we expect to deploy about a third of that capital into long term private funds, maybe about another third into investment grade credit and maybe about another third into liquid credit that's probably.

Connor David Teskey: Really a good rule of thumb based on what we're seeing today and then in terms of pace and ability to.

Connor David Teskey: Make those allocations theres two things we would highlight here.

Connor David Teskey: It does take a little bit of time, but it's not that much and we've spoken over the last.

Connor David Teskey: We've spoken over the last several quarters about investments we've been making in the business. One of the key areas of investment has been in the insurance franchise, such that we are very well positioned to deploy this capital starting last week when AEL closed. It's great that those investments and costs that weren't previously being offset by revenue now have fees to be paired against. As a general rule, I would say it will probably take somewhere in the two to three-year time frame in order to frame out those allocations.

Connor David Teskey: Several quarters about investments, we've been making in the business.

Connor David Teskey: One of the key areas of investment has been into the insurance franchise.

Connor David Teskey: We are very well positioned to deploy this capital.

Connor David Teskey: Starting last week, when El closed in and it's great that those investments and costs that werent previously being offset by revenue now have fees to be paired again, so as a general rule I would say it will probably take.

Connor David Teskey: Somewhere in the two to three year timeframe in order to frame out those allocations.

Alexander Blostein: Great. All right. Thank you guys very much.

Speaker Change: Great Alright, Thank you guys very much.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Geoffrey Kwan with RBC Capital Markets. Your line is now open.

Alexander Blostein: Our next question comes from the line of Geoffrey Kwan with RBC capital markets. Your line is now open.

Geoffrey Kwan: Thanks. I also wanted to talk about credit. I know Hadley talked about it a little bit just now, but given the growth in the credit platform and a more diverse credit product offering, can you talk maybe a bit about the competitive environment around putting that capital to work and how you see your competitive advantage in deploying that capital within credit?

Geoffrey Kwan: Thanks, I also wanted to talk on credit I know Hadley talked about it a little bit just but given the.

Geoffrey Kwan: The growth in the credit platform and a more diverse credit product offering can you talk maybe a bit about the competitive environment around putting that capital to work.

Geoffrey Kwan: And then how you see your competitive advantage in deploying that capital within credit.

Connor David Teskey: Thanks, Jeff. I can take that answer. So if you want, I guess the short answer is it's very strong.

Speaker Change: Okay. Thanks, if I can take that answer.

Speaker Change: So if you.

Jeff: I guess the short answer is its very strong if you think about 2023 and especially the first half there was a lot of market disruption, which was the upside to our credit business.

Connor David Teskey: If you think about 2023, and especially the first half, there was a lot of market disruption, which had the upside for our credit business. Today, there is more liquidity in the market, but we continue to find attractive opportunities. If you take a step back, we have a long record and have proven that we can grow through various market cycles, earning attractive returns for our credit businesses. And we can do this for a few reasons.

Speaker Change: Today, there is more liquidity in the market, but we continue to find attractive opportunities. If you take a step back we have a long record.

Connor David Teskey: We've proven that we can deploy through various market cycles, earning attractive returns for our credit businesses and we can do this for a few reasons. One we have a strong asset knowledge across all the sectors. We invest in we can provide more than just capital, making us the partner of choice and we can provide all parts of the capital structure from debt to equity and in between leading to more proprietary.

Connor David Teskey: One, we have strong asset knowledge across all the sectors we invest in. We can provide more than just capital, making us a partner of choice, and we can provide all parts of the capital structure, from debt to equity and in between, leading to more proprietary deal flow. And finally, I would say we can provide certainty of capital with quick execution, enlarged ticket sizes, and limited competition. But it's also important to note that there continue to be areas of scarcity of capital in today's environment.

Connor David Teskey: Deal flow and finally, I would say, we can provide certainty of capital with quick execution on large ticket sizes limiting the competition.

Connor David Teskey: It's also important to note that there continues to be areas of scarcity of capital in today's environment.

Connor David Teskey: Banks have pulled back. Regional banks are not as active, which has been very helpful for our Catholic business and their asset-based sectors, the real estate and infrastructure markets in particular. And then when you add on maturity walls and unsustainable capital structures, that's an advantageous point for Oak Tree and the growth of their business. So, in essence, it's a good time to have dry powder frost.

Connor David Teskey: Banks have pulled back regional banks are not as active.

Connor David Teskey: Which has.

Connor David Teskey: Very helpful for our Catholic business in our asset base.

Connor David Teskey: Sectors.

Connor David Teskey: The real estate and infrastructure markets in particular, and then when you add on maturity walls and unsustainable capital structures.

Connor David Teskey: And advantageous point for Oaktree and the growth of their business.

Connor David Teskey: So in essence, it's a good time to have dry powder for us.

Geoffrey Kwan: That's helpful. And my second question was, back on investor day, the five-year FBC target implied, I think it was roughly about an 18% CAGR. And I recall also that it seemed like no acquisition, so maybe something like the AEL. But essentially, when you look at Q1, it was up 6% year over year, obviously hit in part by the decline in share prices of the affiliate. Fundraising should be a tailwind, but if monetization markets improve, that could also temper some of that FBC growth.

Speaker Change: Okay. That's helpful and my second question was back in Investor Day.

Geoffrey Kwan: Five year.

Geoffrey Kwan: SBC target implied I think it was roughly about an 18% CAGR and I recall also assume no acquisition, so maybe something like the ABL, but essentially when you look at Q1, it was up 6% year over year.

Geoffrey Kwan: It was hit by the decline in share price at the affiliates.

Geoffrey Kwan: Racing should be a tailwind, but its monetization markets improved I would also temper some of that SBC growth. So my question is.

Geoffrey Kwan: So my question is, looking at your crystal ball, when you take a look at 2024, and if we exclude the $50 billion from AEL, do you see FPC growth this year being, you know, say above that 18% in line or perhaps a bit below that?

Geoffrey Kwan: At your Crystal ball when you take a look at 2024 and if we exclude the $50 billion from ADL.

Geoffrey Kwan: You see SBC growth this year being.

Geoffrey Kwan: Above.

Geoffrey Kwan: 18% in line or perhaps a bit below that.

Connor David Teskey: Thanks, Geoff. Maybe the way we would frame it is, obviously, that 18% CAGR may fluctuate a little bit year to year, but there's nothing about this year that is going to be out of line with that broader trend. The way that we would really characterize this quarter across, let's say, all the key drivers of the business, whether it be deployment, whether it be fundraising, whether it be monetization, there is tremendous momentum

Speaker Change: Thanks, Jeff maybe the way we would frame. It is obviously that 18% CAGR may fluctuate a little bit year to year, but there is nothing about this year.

Connor David Teskey: That is going to be out of line with that that broader trend.

Connor David Teskey: The way that we would really characterize.

Connor David Teskey: This quarter across let's say all the key drivers of the business, whether it be deployment, whether it be fund raising whether it be monetization.

Connor David Teskey: If there are there is tremendous momentum and a number of the growth initiatives that we've locked in in Q1 are going to drive significant amounts of growth in the latter part of this year.

Connor David Teskey: A number of the growth initiatives that we've locked in in Q1 are going to drive significant amounts of growth in the latter part of this year. Additionally, our expanding credit franchise is going to allow us to raise more organic capital. Our expanding wealth solutions franchise is going to allow us to bring more inflows into that business. One year to another might be slightly above or below that long-term trend, but there's certainly nothing about what we're seeing in the market that disrupts our perspective of that very high-teams type keg or going forward.

Connor David Teskey: Our expanding credit franchise is going to allow us to raise more organic capital are expanding wealth solutions franchise is going to allow us to bring more inflows into that business. So one year to another might be slightly above or below that long term trend, but theres certainly nothing.

Connor David Teskey: But what we're seeing in the market that.

Connor David Teskey: Disrupt our perspective of that very high teens type CAGR going forward.

Connor David Teskey: And Jeff.

Bahir Manios: [inaudible] Geoff, it's Bahir. And I'll just add on to that from what Connor said. As I noted in my remarks, if you just looked at our private fund strategies, the activity that's gone on in credit and insurance year over year, our fee-bearing capital was actually up 15%. So there was a bit of noise that you correctly highlighted in your question for sure. But definitely, as Connor said, there's nothing sort of strange here in what happened in the first quarter with respect to sort of the fundamentals of the business and, most importantly, our outlook with respect to growth in the future. Connor, thank you.

Bahir Manios: Jeff It's bahir I'll, just I'll just add to that from.

Bahir Manios: From what corner said.

Bahir Manios: Yeah.

Bahir Manios: As I noted in my remarks, if you.

Bahir Manios: You just looked at our private fund strategies.

Bahir Manios: The activity that's going on in credit.

Bahir Manios: <unk> insurance year over year.

Bahir Manios: Our fee bearing capital was actually up 15%. So there was a bit of.

Bahir Manios: Noise that you correctly highlighted in your question for sure but.

Bahir Manios: Definitely.

Bahir Manios: As Conor said, there's nothing sort of strange here and what happened in the first quarter with respect to sort of the fundamentals at the business and most importantly, our outlook with respect to growth in the future.

Speaker Change: Okay got it thank you.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Brian Bedell with Deutsche Bank. Your line is now open.

Bahir Manios: Our next question comes from the line of Brian Bedell with Deutsche Bank. Your line is now open.

Brian Bertram Bedell: I think you mentioned that you were able to refinance some portfolio company debt at attractive spreads. Maybe if I can tie that in with also the deployment of capital in the credit business and what's increasingly unsustainable capital structures across many businesses, can you talk about how you view that refinancing wall both from your portfolio company perspective and also the opportunity within credit to deploy that capital and whether that's sort of a rising potential on a sequential basis as we move throughout the year in deploying that capital?

Brian Bertram Bedell: Great. Thanks, Good morning, Thanks for taking my question.

Brian Bertram Bedell: Maybe just one on the.

Brian Bertram Bedell: Thank you referenced.

Brian Bertram Bedell: You were able to refinance some portfolio company did at attractive spreads.

Brian Bertram Bedell: Maybe if I can tie that in with also the deployment in the credit business and whats increasingly unsustainable capital structures across many businesses.

Brian Bertram Bedell: Can you talk about.

Brian Bertram Bedell: How are you viewing that refinancing wall both from your portfolio company perspective, and also the opportunity within credits to deploy that capital and whether thats sort of in it.

Brian Bertram Bedell: It's sort of a rising potential on a sequential basis as we move throughout the year and deploying that capital.

Connor David Teskey: Hi Brian, thanks for the question. Perhaps we can come at this slightly differently and just tell you what we're seeing in the market. We often get asked the question, you know, do you expect to be a bigger buyer or a bigger seller in the current market environment? And what is unique about the market right now, and this won't last forever, but it's incredibly constructive, is we expect to absolutely be both in scale given what we're seeing in terms of the economic cycle right now.

Speaker Change: Hi, Brian Thanks for the question.

Connor David Teskey: Perhaps let us come out that's a slightly different way and just tell you what we're seeing in the market. We often get asked the question do you expect to be a bigger buyer or a bigger seller in the current market environment.

Connor David Teskey: What is unique about the market right now and this won't last forever, but it's incredibly constructive is we expect to absolutely be both in scale given what we're seeing in terms of the economic cycle right now at the same time do two things you mentioned.

Connor David Teskey: At the same time, due to things you mentioned, unsustainable capital structures, some ambitious growth that didn't play out in certain businesses, we are seeing incredible opportunities to deploy capital at scale, while at the same time, the big trends that we've been investing in, digitalization, decarbonization, deglobalization, those continue to accelerate. So it is an incredibly constructive market for us to continue to put capital to work. Well, at the exact same time, we have seen an extremely robust demand come back into the market for high-quality de-risked assets. And we're starting to see that, as Bruce mentioned, in our private equity and real estate businesses. But quite frankly, we're seeing it across the entire franchise.

Connor David Teskey: Sustainable capital structures.

Connor David Teskey: Some ambitious growth that didn't play out in certain businesses, we are seeing incredible opportunities to deploy capital.

Connor David Teskey: At scale, while at the same time, the big trends that we've been investing in digitalization decarbonization Deglobalization those continue to only accelerate so it is an incredibly constructive market for us to continue to put capital to work.

Connor David Teskey: Well at the exact same time, we have seen an extremely robust bid comes back to the market for high quality Derisked assets and we're starting to see that as Bruce mentioned in our private equity and real estate businesses, but quite frankly, we're seeing it across the entire franchise and <unk>.

Connor David Teskey: And our de-risked and high-quality assets within renewable power and within infrastructure, we expect to be very active on both the investment and the monetization side this year. So, when it comes to your question specifically about credit... We are seeing that bifurcation as well. Within our high-quality businesses that we have executed the business plan, they are now stable, growing, and expanding their margins. We're seeing the opportunity, as Bruce mentioned, to refinance those businesses at really attractive rates and put them in a great position to be monetized in the next one or two or three years.

Connor David Teskey: <unk> de risked and high quality assets within renewable power within infrastructure, we expect to be very active on both the investment and the monetization side. This year. So when it comes to your question specifically about credit we.

Connor David Teskey: We are seeing a bifurcation as well.

Connor David Teskey: Within our high quality businesses that we have effects you weighted the business plan. They are now stable. They are growing their margins are expanding we're seeing the opportunity as Bruce mentioned to refinance those businesses at really attractive rates and put them in a great position to be monetized in the next one or two.

Connor David Teskey: At the same time, we are looking to capitalize on some of the market dynamics where businesses are over-leveraged, and we can buy great assets that simply have imperfect capital structures. And that's also going to be a big theme for us for the next two or three quarters.

Connor David Teskey: We're three years at the same time, we are looking to capitalize on some of the market dynamics, where businesses are over levered and we can buy great assets that simply have imperfect capital structures and Thats also going to be a big theme for us for the next two or three quarters.

Bahir Manios: That's great, Culler. And maybe just one on the FRE margin and expense growth. I think we were looking for low-double-digit expense growth this year in 2024 and an FRE margin that could expand to around that 58 percent level. I just was wondering if that's still intact as you scale the businesses sequentially throughout the year.

Bahir Manios: That's great color and maybe just one on the FRE FRE margin and expense growth I think we were.

Bahir Manios: Looking for low double digit expense growth this year in 'twenty, four and an FRE margin could expand to that around that 58% level. Just was wondering if thats still in.

Bahir Manios: Intact as you scale the businesses.

Bahir Manios: Throughout the year.

Bahir Manios: Hi Brian, it's Bahir. Thanks for the question. Look, I'd say compared to the, let me just talk about results in general, compared to the prior year, we obviously had a delay closing on the insurance asset management mandate that we got from American Equity Life. So, in addition to the fact that our permanent capital vehicles, the trading prices on those came off during the quarter, which we see as a temporary issue.

Speaker Change: Hi, Brian.

Bahir Manios: Its bahir thanks for the question.

Bahir Manios: Look I'd say compared.

Bahir Manios: The.

Bahir Manios: Let me just talk about results in general compared to the.

Bahir Manios: The prior year.

Bahir Manios: Obviously, you had a delay closing on the insurance asset management mandate that we got.

Bahir Manios: From American equity life.

Bahir Manios: So that in addition to the fact that our permanent capital vehicles.

Bahir Manios: The trading prices on dose.

Bahir Manios: <unk>.

Bahir Manios: Came off during the quarter, which we deem which we see as that.

Bahir Manios: A temporary issue if you just factor dose two impacts alone so not saying that the share prices should be higher than last year, but let's just assume that they were flat.

Bahir Manios: If you just factor those two impacts alone, so not saying that the share prices should be higher than last year, but let's just assume that they were flat last year and had AEL closed earlier, you would have just seen, and without us doing any fundraising this year, without us doing much capital deployment, etc., those two impacts alone would have meant that our FRE per share would have gone up in the low double digits. So then, on expenses, they were up by, I believe, 9% compared to the prior year.

Bahir Manios: To last year and had a L have closed earlier you would have just seen and without us doing any fundraising this year without us doing much capital deployment et cetera. Those two impacts alone would have meant that our FRE.

Bahir Manios: <unk> per share would have gone up.

Bahir Manios: In the low double digits.

Bahir Manios: Then on expenses.

Bahir Manios: We're up.

Bahir Manios: By I believe 9%.

Bahir Manios: Impaired to the prior year and just the increase in the magnitude of that increase has come down.

Bahir Manios: And just the increase, the magnitude of that increase has come down quite significantly, which we see to be something that should stay pretty consistent across the year. So as a result of, you know, another point Connor mentioned in his remarks is that the fundraising should be a lot more spread out this year. We see lots of areas to deploy capital. So just the impacts of all of that should mean that margins should improve quite a bit in future quarters. So we still maintain that guidance that we told the market in the previous, last year.

Bahir Manios: Quite significantly, which we seek to be something that should stay pretty consistent across the year. So as a result of.

Bahir Manios:

Bahir Manios: When.

Bahir Manios: Another point Conor mentioned on his remarks is the fundraising should be a lot more spread out this year, we see lots of areas to deploy capital.

Bahir Manios: So just the impacts of all of that should mean that.

Bahir Manios: Margins.

Bahir Manios: Should improve quite a bit.

Bahir Manios: In future quarters, so still maintain.

Bahir Manios: That guidance that we.

Bahir Manios: Towards the market.

Bahir Manios: In the previous last year.

Brian Bertram Bedell: Last quarter, yep. Okay, perfect. Thank you.

Brian Bertram Bedell: Quarter, yes, okay perfect. Thank you.

Operator: Thank you. Our next question comes from the line of Nik Priebe with CIDC Capital Markets. Your line is now open.

Speaker Change: Thank you.

Operator: Our next question comes from the line of Nik Priebe with CIBC capital markets. Your line is now open.

Nikolaus Priebe: Okay, thanks for the question. If I caught the comments on Castle Lake earlier correctly, you're writing a $350 million check to acquire the 51% GP interest. That, in turn, is expected to generate $40 million in FRE. That implies a transaction multiple of about nine times. That just strikes me as a bit low. So is that $40 million figure quoted in the letter on a 100% basis rather than as BAM's share? Or was there some other nuance in the way that that transaction was priced? Just a bit of color on that would be helpful.

Nikolaus Priebe: Okay. Thanks for the question.

Nikolaus Priebe: If I caught the comments on castle Lake earlier correctly, Youre, writing, a $350 million check to acquire the 51% GP interest.

Nikolaus Priebe: That in turn is expected to generate $40 million of FRE.

Nikolaus Priebe: That implies a transaction multiple of about nine times that just strikes me as a bit low so is that $40 million figure quoted in a letter on a 100% basis rather than at Bam share or was there. Some other nuance in the way that that transaction was priced just a bit of color on that would be helpful.

Connor David Teskey: Thanks, Nick. I believe you got that all absolutely right, but I want to clarify. So, $500 million will be invested from BAM, and about $350 of that is to acquire the FRE. BAM will also invest an additional $150 million. The incremental $150 million will be used to acquire some of Castle Lake's current assets, as well as fund our proportionate share of the GP stakes within the Castle Lake business. Your $350 million for our 51% of the FRE compares to $40 million, which is, again, 51% of the FRE.

Speaker Change: Thanks, Nick and just I believe you got that all absolutely right, but I want to clarify so the $500 million will be invested from Bam about $3 50 of that is to acquire the FRE Bam will also invest an additional $150 million the incremental 100.

Connor David Teskey: $50 million will be to acquire some of catheter lakes current carry.

Connor David Teskey: As well as fund our proportionate share of the GP Stakes within the Capsulate business your $350 million.

Connor David Teskey: There are 51% of the FRE is compares to $40 million, which is again, 51% of the FRE. So youre a directional.

Connor David Teskey: So, your directional multiple is correct. The one thing I would highlight is $40 million is what we expect to see over the next 12 months. So, it is very much a forward-looking multiple as opposed to an LTM multiple, and that's probably a little bit of a nuance in terms of why it looks a bit low to you.

Connor David Teskey: Multiple is correct. The one thing I would highlight is $40 million is what we expect to see over the next 12 months. So it is very much a forward looking multiple as opposed to an LTM multiple and thats, probably a little bit of a nuance in terms of why it looks a bit low to you.

Connor David Teskey: Okay, that's very helpful. And then, are you also able to say what it costs to acquire the incremental 5% interest in Oak Tree and maybe what that represents as a multiple of FRE?

Speaker Change: Okay. That's very helpful. And then are you also able to see what it cost to acquire the incremental 5% interest in oak tree and maybe what that represented as a multiple of FRE.

Connor David Teskey: Yeah, sure. So, our investment to acquire, or BAM's investment in that incremental stake of Oaktree was about $275 million. It's important to recognize that we have a formulaic calculation with Oaktree that was put in place at the time of our partnership five years ago and is very similar to what you saw with us when we spun out the asset manager. Brookfield Asset Management buys the FRE from Oaktree, and BN buys the historic carry and some of the balance sheet positions from Oaktree. So, our multiple on the $275 million that was invested in the FRE of Oaktree is based on this formula, and the multiple in that formula is 13.5 times.

Speaker Change: Yes sure so.

Connor David Teskey: Our investment to acquire or bands investment in that incremental stake of Oaktree was about $275 million.

Connor David Teskey: It is important to recognize that we have a formulaic calculation with oak tree that was put in place at the time of our partnership.

Connor David Teskey: Five years ago, and very similar to what you saw with us when we spun out the asset manager.

Connor David Teskey: Brookfield asset management buys the FRE.

Connor David Teskey: From Oaktree.

Connor David Teskey: BN buys the historic carry and some of the balance sheet positions from Oaktree. So.

Connor David Teskey: Our multiple on the $275 million that was invested in the FRE of Oaktree, if based on the formula and the multiple and that Formula is 13 five times.

Nikolaus Priebe: Perfect. That's great. Okay, that's it for me. Thank you.

Speaker Change: Perfect. That's great. Okay. That's it for me thank you.

Operator: Thank you. Our next question comes from the line of Ken Worthington with J.P. Morgan. Your line is now open.

Speaker Change: Thank you.

Operator: Next question comes from the line of Ken Worthington with Jpmorgan. Your line is now open.

Kenneth Brooks Worthington: Hi, good morning, and thanks for taking the question. The U.S. Department of Labor recently finalized best interest rules, and I think those rules hit the National Register this past April. Do you have any sense of what portion of AEL's business might be impacted by the new rules, and do you see them as sort of a risk or opportunity for the $15 billion to $20 billion of annual revenue?

Kenneth Brooks Worthington: Hi, good afternoon, good morning, and thanks for taking the question.

Kenneth Brooks Worthington: U S Department of Labor recently finalized best interest rules and I think those rules hit the National Register.

Kenneth Brooks Worthington: This past April do you have any sense of what portion of <unk> business might be impacted by the new rules and do you see them as sort of a risk or opportunity to the $15 billion to $20 billion of annual sales that you're sort of projecting in insurance.

Connor David Teskey: So maybe I'll just start, and Bahir or others, if you want to weigh in. I think our enthusiasm and growth about the potential sales within our insurance platform are really driven by two things. First and foremost, we think we have a best-in-class platform that has only been enhanced by the acquisition of AEL, and therefore, it should grow along with the broader market, if not increase some modest market share increases going forward.

Speaker Change: So maybe I'll just start and they hear or others. If you want to weigh in I think our.

Connor David Teskey: And then the second thing to highlight is just the demographic support that we are seeing for the annuities business that AEL and our broader wealth solutions provide. And the fact that we always really focus on is, you know, maybe just a fun fact for everyone on the call, this year will be the highest year ever in the United States for people turning 65. That record is going to be broken every year for the next seven years, and the total number of people above 65 is going to double between now and 2040.

Connor David Teskey: Enthusiasm and growth about.

Connor David Teskey: The potential sales of.

Connor David Teskey: Within our insurance platform are really driven by two things first and foremost we think we have a best in class platform that has only been enhanced by the acquisition of ADL and therefore, they should grow along with the broader market if not increase some some modest market share increases going forward and then the.

Connor David Teskey: Second thing to highlight is just the demographics support that we are seeing for the annuities business, the ABL and our broader wealth solutions provides.

Connor David Teskey: That that we always really focused on is.

Connor David Teskey: Maybe just a fun fact for everyone on the call. This year will be the highest year ever in the United States for people turning 65.

Connor David Teskey: That record will be broken every year for the next seven years and the total number of people above 65 is going to double between now and 2040 those are the meaningful dynamics that drive the growth in our insurance business going forward and Thats why we have so much confidence in.

Connor David Teskey: Those are the meaningful dynamics that will drive the growth in our insurance business going forward, and that's why we have so much confidence. In terms of some of the changes that have been made, we really don't see them disrupting that trend, but perhaps Bahir, I'll let you provide a comment.

Bahir Manios: In terms of some of the changes that have been made we really don't see them disrupting.

Bahir Manios: That trend, but perhaps the here I'll, let you provide a comment.

Bahir Manios: Thanks, Connor. Look, I agree with all of that. I would just say that larger companies such as ourselves will be just better equipped to handle these new regulations.

Bahir Manios: Thanks Connor.

Bahir Manios: I agree with all of that I would just say the larger scale companies such as <unk>.

Bahir Manios: Ourselves.

Bahir Manios: We'll be just better equipped to handle these.

Speaker Change: New regulations.

Kenneth Brooks Worthington: Great, thank you very much.

Speaker Change: Great. Thank you very much.

Jason Fooks: Thank you. I would now like to hand the conference back over to Jason Fooks for closing remarks.

Speaker Change: Thank you.

Jason Fooks: I would now like to hand, the conference back over to Jason <unk> for closing remarks.

Operator: Okay. Great. Thanks. If anyone should have any additional questions on today's announcement, please feel free to contact me directly. Otherwise, thank you all for joining us.

Jason Fooks: Okay, great. Thanks, if anyone should have any additional questions on today's announcement. Please feel free to contact me directly otherwise. Thank you all for joining us.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Jason Fooks: This concludes today's conference call. Thank you for participating and you may now disconnect.

Operator: Okay.

Operator: Okay.

Operator: [music].

Operator: Okay.

Operator: Okay.

Operator: Yes.

Operator: Okay.

Operator: Okay.

Operator: Okay.

Operator: [music].

Operator: Yes.

Operator: [music].

Operator: Yes.

Operator: Okay.

Operator: [music].

Operator: Yes.

Operator: Yes.

Operator: Okay.

Operator: Okay.

Operator: Yes.

Operator: Okay.

Operator: Yes.

Operator: [music].

Operator: Okay.

Operator: Yes.

Operator: Okay.

Operator: Hum.

Operator: [music].

Operator: Yes.

Operator: Yes.

Operator: [music].

Operator: Okay.

Operator: [music].

Speaker Change: Thank you.

Operator: [music].

Operator: Okay.

Operator: [music].

Operator: Okay.

Operator: Okay.

Operator: Okay.

Speaker Change: Thank you.

Operator: Okay.

Operator: Okay.

Operator: Okay.