(Bloomberg) -- Brookfield Asset Management reported its first quarterly decline in profit since it spun out of its parent company amid a drop in fees from some permanent capital vehicles.

Distributable earnings were $547 million, or 34 cents a share, in line with the average estimate of analysts in a Bloomberg survey and down from $563 million in the same three months a year earlier. Total fee revenue fell in three of its five main business lines, driven by lower fees from affiliated firms like Brookfield Renewable Partners and Brookfield Property Group. 

Brookfield was spun out from parent Brookfield Corp. in late 2022 to appeal to shareholders looking to invest in its asset management business without being as exposed to to the group’s direct holdings of real estate. The firm said it raised $20 billion of capital in the first quarter, including around $10 billion across more than a dozen credit strategies. 

Shares of Brookfield Asset Management fell as much as 4.8%, the most intraday in nearly a year, before paring losses. The stock was down almost 3% to $38.65 at 10:15 a.m. in New York.

The firm is pushing further into credit, which is now its largest business line by fee-bearing capital and people. Brookfield said it boosted its stake in Oaktree Capital Management by 5%, bringing its total ownership stake to 73%, after earlier this week taking a stake in private-debt firm Castlelake LP.

“With more than $100 billion of dry powder to invest, both the diversity of our business mix and our global footprint mean that we remain very well-positioned to capture investment opportunities,” Connor Teskey, president of Brookfield Asset Management, said in a statement.

Fee-related earnings climbed about 1% from a year earlier to $552 million. The firm ended the quarter with $459 billion of fee-bearing assets, a slight increase from $457 billion at year-end and up 6% over the past year. It aims to reach $1 trillion by 2028. 

Brookfield recently formed a credit arm, headed by Craig Noble, to consolidate all of its credit activities under one umbrella and drive growth alongside its traditional real estate and infrastructure funds. On Monday, it struck a partnership with Castlelake to take a majority share of the private debt firm’s fee-related earnings. Brookfield plans to invest about $1.5 billion, including money that Brookfield Reinsurance Ltd. will place in Castlelake’s strategies.

Read More: Brookfield’s $200 Billion Credit Group Seeks to Lure Insurers

Last week, Brookfield Reinsurance, a separate publicly traded entity, completed the acquisition of American Equity Investment Life Holding Co., adding about $50 billion of insurance assets, a majority of which will be managed by Brookfield’s credit unit. 

It has also emerged as one of the most acquisitive firms in the industry. Brookfield bought a controlling stake in Dubai-based Gulf Islamic Investments’ logistics real estate platform, marking its entry into the logistics sector in the region. Earlier this month, Brookfield’s green energy arm and Microsoft Corp. signed the biggest corporate clean-energy purchase agreement ever announced. 

--With assistance from Peter Eichenbaum, Michael J. Moore and Derek Decloet.

(Updates shares in fourth paragraph.)

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