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 22, 2022 8:01am

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Post# 34449370

TD

Currently have it on their Action Buy List with a US$79.00 target. GLTA

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$53.20 | C$67.91

First Potential Large Investment of Transition Fund Announced Event

BAM, with local partner, Grok Ventures, has announced a take-private bid for AGL Energy Ltd., which, if successful, would constitute the first major investment in the inaugural Global Transition Fund.

Impact: POTENTIALLY SLIGHTLY POSITIVE

The transaction is not material to BAM, but we believe that it offers a template for the Global Transition Fund's mandate. BAM and Grok have bid for AGL, the largest integrated power-generation and energy retailer in Australia. The bid offers A$7.50/share, which corresponds to an equity value of ~A$5bln/enterprise value of A$7.9bln (EV/EBITDA multiple of 5.8x and 5.3x, based on 2022E and 2023E, respectively). AGL has rejected the proposal, arguing that it does not offer a sufficient control premium, which will likely prompt BAM/Grok to make their pitch directly to investors. The BAM/Grok proposal contemplates fast-tracking the closure of AGL's coal-fired power stations, and investing ~$20bln to develop ~7MW-9MW of green replacement capacity, consistent with BAM's considerable renewable power expertise. The equity consideration offered is in cash, with up to 20% in equity of the acquiring vehicle, and we anticipate that BEP will fund the Brookfield commitment (~25-30%). The AGL share-price has already traded through the BAM/Grok offer price.
AGL has proposed to split itself into two companies: 1) AGL Australia, which would own the power, gas and telecommunications retail business, as well as some cleaner power-generation assets and 2) Accel, which would hold AGL’s coal- and natural-gas-fired power generation (~8% of Australia’s overall emissions). BAM/Grok intend to accelerate AGL's exit from coal-powered generation to 2030, ~15 years earlier than currently contemplated, and argue, not unreasonably, that the demerged company may not have sufficient access to capital to make the transition to clean power.
BAM's Global Transition Fund is expected to hold a final close on $15bln soon, establishing BAM as a first mover in an emerging vertical, with the aim of generating strong risk-adjusted returns and meaningful decarbonization, across two major focus areas: 1) adding clean energy to the electricity grid on behalf of corporate clients and 2) providing energy/decarbonization solutions to businesses/governments, with a focus on energy-intensive sectors, such as steel/ cement/chemicals and utilities.