Brookfield Asset Management Voting Ord Shs Class A 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 | 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 Sep 13, 2022 9:56am

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Post# 34959141

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Their upside scenario target is US$76.00. GLTA

September 13, 2022
Brookfield Asset Management Inc.
The Secret of My Success: Investor Day Highlights

Our View: The Investor Day importantly answered several key questions regarding the upcoming asset manager spinoff, but we think the over- arching theme was BAM is well-positioned to capitalize on numerous key investment themes in the current market environment given its scale; strong product offering and fundraising capabilities; and positive investment track record. Despite an uncertain macro outlook, we think BAM offers investors an attractive blend of significant NAV-growth driven valuation upside and relatively strong defensive attributes. The shares trade at a 6.7% discount to NAV. We view BAM as a core holding and reiterate our Outperform rating and US$66 target.

Key points:
Key takeaways (see pp. 3–13 for key exhibits from BAM’s presentation): • BAM’s updated 5-year targets (2022-2027): (1) Plan Value (before factoring in the asset manager spinoff): +17% CAGR from US$82-$94/ share to US$175-$198/share; (2) Distributable Earnings (DE): +20% CAGR from US$3.7B to US$9.3B; (3) Fee Bearing Capital: +20% CAGR from US$400B to US$1T; and (4) Fee Related Earnings: +17% CAGR from US$2.0B to US$4.4B. We note the CAGRs are similar to those from last year’s Investor Day.

• Asset Manager spin-off additional details: (1) the current BAM will be re-named Brookfield Corp. (planned tickers NYSE/TSX: BN) and the asset manager will be named Brookfield Asset Management (planned tickers NYSE/TSX: BAM); (2) carried interest from existing funds will be 100% attributable to BN with BAM only eligible to earn carried interest on “new”/future funds (BSREP 4, Global Transition Fund, BIF 5 and BCP 6 are “new” funds). Carried interest on new/future funds will be split 1/3 to BN and 2/3 to BAM; (3) re-iterated target 90% dividend payout ratio for the asset manager, with the dividend being variable. BAM is targeting 15-20% growth in distributions; (4) spinoff will be tax-free at least in the U.S. and Canada with 1 share of the asset manager issued for every 4 shares owned in BN, resulting in BN spinning off 25% of the asset manager; (5) the asset manager will have US$2.8B in cash/financial assets and zero debt and BAM expects it to generate US$2B in FCF/year; and (6) BAM believes the current Plan Value of the asset manager is US$32- $45/share, which assumes 25-35x FRE, 10x on annual net target carried interest plus accumulated unrealized carried interest. BAM estimates the asset manager Plan Value could reach US$71-$94/share in 5 years (+19% annualized total return);