Brookfield Asset Management Voting Ord Shs Class A T.BAM

Alternate Symbol(s): T.BN.PF.G | BXDIF | T.BN.PR.R | BKFAF | T.BN.PF.H | T.BN.PR.T | T.BN.PF.I | BKAMF | T.BN.PR.X | BAM | BKFDF | T.BN.PF.J | T.BN.PR.Z | T.BN.PF.K | T.BN.PF.A | BAMGF | T.BN.PF.L | BROXF | T.BN.PF.B | BAMKF | T.BN.PR.B | BRCFF | T.BN.PF.C | T.BN.PF.D | BKFOF | T.BN.PR.K | BRPSF | T.BN.PF.E | BKFPF | T.BN.PR.M | BRFPF | T.BN.PF.F | T.BN.PR.N

Financial Services Asset Management

Brookfield Asset Management Ltd. is primarily engaged in providing alternative asset management services. The Company provides its services through an ownership interest in an alternative asset management business, which is carried on by Brookfield Asset Management Inc. (Brookfield) and its subsidiaries. Its products have three categories, which include long-term private funds, perpetual strategies and liquid strategies. The Company's wholly owned subsidiaries include 2451634 Alberta Inc. and Brookfield UK Employee Co Limited. Brookfield is a global alternative asset manager with assets under management across real estate, infrastructure, renewable power and transition, private equity and credit. Brookfield offers a range of alternative investment products to investors around the world, including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

TSX:BAM - Post by User

Brookfield Asset Management Voting Ord Shs Class A

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Aug 14, 2020 8:05am

638 Views

Post# 31407268

TD Upgrade

Raise their target to US$45.00. GLTA

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$33.26 | C$44.02

Record Fundraising Led by Latest Distressed Debt Flagship

Event

BAM reported Q2/20 results and provided a business update.

Impact: POSITIVE

OFFO of $657mm was relatively stable vs. $668mm in Q2/19, as strong growth in fee-related earnings, and the contribution from capital deployed over the last 12 months, largely offset the impact of short-term shutdowns across certain real estate and private equity businesses.
Fee-bearing capital stands at $277bln, and BAM has raised a record $23bln since it last reported ($9bln in Q2/20 and $14bln subsequently). The $23bln includes $12bln for the latest distressed debt fund, which BAM anticipates will become the largest-ever fund raised for distressed debt, and one of the company's largest funds, once it holds a final close (i.e., $15bln-$20bln). Other fundraising highlights include first closes on the second vintage infrastructure debt fund ($1.8bln) and the first-ever European perpetual core-plus real estate fund (€725mm). Additionally, BAM's latest flagship real estate, infrastructure, and private equity funds are ~50% committed/invested and fundraising for the next vintages should start in 2021.
BAM has a record $77bln of available liquidity, including $61bln of uncalled fund commitments and $16bln of core liquidity, which is supplemented by annual free cash flow of ~$2.4bln (prior to realized carried interest). Capital deployment in Q2/20 included $5bln across the credit funds, over $1bln into public toehold positions, and $250mm from the new Special Investments program, which targets non-control equity and equity-linked investments in companies that require capital for debt repayment or growth. In general, however, BAM is keeping its powder dry, with a view that better opportunities will arise over the next 12+ months, as temporary economic stimulus measures lapse.

TD Investment Conclusion

We believe that BAM has ample liquidity to address issues that may arise in its portfolio, which we anticipate will be largely related to BPY's mall assets, and to capitalize on market dislocation, as it has done in previous downturns. In the medium- to-long term, we expect that near-zero interest rates globally will only increase investor appetite for BAM's alternative investment products.