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Brookfield Asset Management Voting Ord Shs Class A T.BAM

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

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

Post by retiredcfon May 26, 2022 3:02pm
532 Views
Post# 34709973

TD

TD

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$47.03 | C$60.27

Highlights of Investor Meetings

Event

Yesterday, we hosted BAM for investor meetings in Montreal.

Impact: NEUTRAL

  • Fundraising/Capital Deployment/Asset Dispositions: BAM is not seeing any slowdown in institutional fund-flows to alternatives, and the industry has only begun to tap the massive retail wealth market. The company expects to hold first closes on its latest flagship infrastructure/private equity funds in the near- term, which we see as potential share-price catalysts. Market volatility creates opportunities for a value-oriented investor like BAM (e.g., take-private deals), which should benefit returns on funds raised during this period. The company seems to have good visibility to its target of realizing up to $1bln of gross carried interest in 2022, and we believe that it is important to differentiate between private equity vs. real assets in assessing the risk to carried interest. Private equity, while a fast-growing part of BAM, is still just ~10% of fee-bearing capital, and tends to be more dependent on the IPO market for exits. In real assets, the current cash yield can generate up to ~50% of the preferred return; and the typical exit routes are still open (i.e., sales to strategic buyers/pension/sovereign wealth funds).

  • Partial Listing of the Asset Manager: The strategic rationale for distributing/ listing a 25% stake in the asset manager is: 1) to establish a strong, decentralized management team; and 2) the potential to create a well-priced security that provides optionality for growth because it can be used as an M&A currency. We would expect BAM to be very selective on M&A due to the importance of cultural fit but could envision the company using M&A to quickly scale up in Asia/technology, much as it did in credit with Oaktree. Some investors are concerned that a higher valuation for the manager could be partially offset by a larger discount on invested capital at the corporation, but our experience is that many potential investors are deterred by the need to understand BAM's balance sheet, whereby a separately- listed asset manager should attract new investors, rather than cannibalize the corporation's existing investor base.

    TD Investment Conclusion

    We believe that BAM shares provide exposure to a world-class asset management franchise and a high-quality portfolio of real assets.


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