Brookfield Asset Management Voting Ord Shs Class A T.BN.PF.I

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

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.

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Brookfield Asset Management Voting Ord Shs Class A

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Post by retiredcfon Feb 09, 2023 8:47am

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Post# 35276601

TD

They currently have a US$47.00 target. GLTA

Brookfield Asset Management Ltd.

(BAM-N, BAM-T) US$34.71 | C$46.72

Q4/22 DE Beat; 2022 Fundraising was a Record $93bln Event

Q4/22 DE of $0.35/share beat the Street/TDSI at $0.31/$0.33. FRE were 9% above our expectations, while lower taxes were offset by lower earnings on financial assets.

Impact: SLIGHTLY POSITIVE

Fee-bearing Capital: FBC stands at $418bln, up 15% y/y and 3% q/q, based on a record $93bln of capital raised in 2022, including $14bln in Q4/22.
Fee-related Earnings: FRE were up 26% y/y in Q4/22, reflecting BAM's private fundraising success, partially offset by lower market caps for the perpetual affiliates (which have already partially recovered YTD). FRE also included a lumpy $45mm of transaction/advisory fees related to the insurance business.
Dry Powder: BAM has >$90bln of dry powder to invest against a macro backdrop, which favours its value orientation and ability to execute quickly at scale, particularly given that it can also access the considerable financial resources of Brookfield Corp. to facilitate large transactions.
Potential Fundraising Catalysts: BAM launched the fundraising for its latest opportunistic credit flagship fund in late-Q4/22, which should grow substantially vs. its $16bln predecessor. BAM should also hold final closes on its latest flagship infrastructure/private equity funds soon, with the infrastructure fund likely to comfortably surpass its $20bln predecessor, and the PE fund already equal in size to its predecessor, despite a tough PE fundraising environment. BAM recently launched its fifth flagship real-estate fund, which will likely be closely watched by investors, given some concerns regarding the outlook for real estate. The company also expects to launch its second transition fund in 2023, which should extend its first-mover advantage in transition investing.

TD Investment Conclusion

BAM is a leading pure-play alternative asset manager, which we see as well- positioned relative to its peers, based on its dominant position in infrastructure and renewables, global leadership in real estate, first-mover advantage in transition investing, and pre-eminent credit franchise (Oaktree). The company's distributable earnings are almost entirely composed of FRE, which are highly predictable, because they are underpinned by FBC that is very long term and/or perpetual (~83% of FBC). The balance sheet has zero debt, and the initial dividend, which represents an ~3.7% yield, should compound at ~15-20%/year, in line with FRE.