Brookfield Asset Management Voting Ord Shs Class A BRPSF

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.D | 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 | 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 Sep 22, 2021 9:12am

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Post# 33897521

TD

Have a US$71.00 target. GLTA

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$52.35 | C$67.07

Targeting to Double Size/Value of Franchise Over Next Five Years Event

BAM hosted its annual Investor Day.

Impact: POSITIVE

Well-Positioned for Continued Strong Growth: BAM's fee-bearing capital has tripled over the last five years, and the company is targeting a further doubling to $830bln+ by 2026, with continued strong growth in the five core businesses supplemented by the scale-up of four new strategies: insurance solutions, technology investing, transition funds, and secondaries. Among the new strategies, BAM has made the greatest progress in insurance and technology but is also well-advanced in transition and secondary mandates, with insurance solutions and transition funds representing the largest expansion potential. Other meaningful avenues for growth include cross-selling to existing clients/originating new clients, accessing new distribution channels (e.g. wealth), and developing adjacent investment strategies (e.g. core perpetual funds).

Five-Year Outlook: BAM outlined potential upside to $150.00-$184.00/share in 2026, which represents a total annualized return of 25%+ vs. the current share- price. Distributable earnings (a FCF proxy) are projected to grow to $6.80/ share in 2026 vs. $2.40/share for the TTM ending June 30, 2021 (23% CAGR, excluding realized disposition gains), with core DE expected to be supplemented by $12bln of realized carried interest (gross) plus the growing insurance business. Notably, BAM has reached a key inflection point, whereby at least one fund in each flagship series is now generating realized carried interest, which has totaled $1.5bln (gross) over the TTM vs. $0.5bln in the comparable prior-year period.
BPY a Source of Capital: BAM privatized BPY in late-July, and has ~$30bln of invested capital in real estate, comprised of a core portfolio ($16bln), LP investments ($7bln), and transitional/development assets ($7bln). The company sees the opportunity to surface $25bln of capital from the real estate portfolio by monetizing the transitional/development assets and executing up-financings and partial asset sales across the core portfolio, with the proceeds to be redeployed to fund growth strategies and/or share repurchases.

TD Investment Conclusion

We believe that an investment in BAM provides exposure to a high-quality portfolio of real assets, with the added leverage of a world-class asset management franchise.