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

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

Financial Services Asset Management

Brookfield Asset Management Ltd. is a global alternative asset manager. The Company invests client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. It 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. Its products have three categories, which include long-term private funds, perpetual strategies and liquid strategies. These are invested across five principal strategies: renewable power and transition, infrastructure, real estate, private equity, and credit.

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Brookfield Asset Management Voting Ord Shs Class A

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Post by retiredcfon Feb 12, 2021 9:41am

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Post# 32550894

TD 2

They did indeed raise their target by over 10% to US$63.00. GLTA

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$42.57 | C$54.04

Q4/20 OFFO Beat; More Flagship Fundraising Launched

Event

BAM reported Q4/20 results and provided a business update.

Impact: POSITIVE

Q4/20 Results: OFFO was $0.66/share, well above the consensus estimate of $0.55 and our forecast of $0.53. Fee-related earnings were up 4% y/y to $411mm and FFO from invested capital increased to $644mm vs. $444mm in Q4/19.
Fee-bearing Capital: Fee-bearing capital increased 8% y/y and q/q to $312bln, with the sequential increase largely reflecting market appreciation across the listed affiliates/credit strategies, as well as capital raised/deployed in credit. BAM has embarked on its next round of flagship fundraising and sounds confident about its target of $100bln. The latest flagship distressed debt fund has raised $13bln to- date and should hold a final close in H1/21, and the company recently launched its fourth flagship real-estate fund as well as its inaugural Global Transition Fund, which is focused on decarbonizing the global energy grid, and should reach $7.5bln+ in size, including $2bln from BAM.
Carried Interest: BAM recognized a healthy $231mm of net carried interest in Q4/20, primarily related to realizations across the credit, private equity, and real- estate platforms. Despite strong carried interest realization, the net unrealized carried interest balance was up 14% q/q to $2.6bln, of which BAM expects to recognize 60% over the next three years, with Q1/21 likely to be particularly active.
BPY Privatization: BAM does not expect a take-private deal to negatively affect fee-related earnings, as fees would be prospectively determined based on NAV. A privatization would temporarily increase BAM's invested capital in real estate, but the company expects that its balance-sheet exposure to real estate would decline over time vs. current levels, based on the flexibility afforded by private ownership. We believe that portions of BPY's portfolio would be well-suited to seed perpetual core real-estate strategies, which should be accretive to fee-bearing capital.

TD Investment Conclusion

We see a prolonged period of near-zero interest rates as a favourable backdrop for BAM, as it should only increase investor appetite for alternative investment products as fixed-income substitutes. Furthermore, we anticipate that BAM will capitalize on market dislocation resulting from the pandemic to enhance its franchise, as it has done in previous cycles.