Brookfield Sees Record $34 Billion in Inflows From Investors

(Bloomberg) -- Brookfield Asset Management Inc. posted record inflows of $34 billion in the third quarter as investors sought higher yields in a low interest-rate environment.

The company cited strong demand for its real estate and credit offerings, bringing in a total of $24.8 billion for funds focused on those areas. That helped fee-related capital surge to $341 billion, Brookfield said in an earnings statement Thursday.

Brookfield is further accelerating fundraising with the expectation that rates are “poised to remain lowish for longer,” Chief Executive Officer Bruce Flatt said in a letter to investors Thursday. The company also stands to benefit from an economic rebound that’s driving markets higher.

“Gross domestic product growth has been strong, labor markets have continued to improve, and capital markets remain very constructive,” Flatt said. “As owners of real assets and businesses, most of which can raise prices contractually or with inflation, we are well positioned in this environment.”

Alternative asset managers are seeing strong demand from investors. Private equity giants including Apollo Global Management Inc. and Carlyle Group Inc. are raising record sums. Toronto-based Brookfield plans to raise $125 billion for the next round of its flagship funds after it brings in $100 billion in the current round, Flatt said in September.

Brookfield shares rose 1.8% to $61.50 in early trading in New York. The stock has returned 48% this year through Wednesday.  

Other results:

• Funds from operations of 85 cents a share fell short of analysts’ estimates of 90 cents.
• Adjusted earnings per share came in at 47 cents
• Revenue rose to $19 billion, an 18% gain year-over-year
• The firm plans to further push into private credit, Flatt said

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