Brookfield Asset Management Voting Ord Shs Class A T.BN.PR.Z

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 | BRPSF | T.BN.PR.M | T.BN.PR.N | T.BN.PR.R | BAMGF | BAMKF | T.BN.PR.T | T.BN.PR.X | BKAMF

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 Nov 10, 2022 10:01am

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Post# 35088141

TD 2

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$40.54 | C$54.86

Q3/22 DE Beat Consensus; Tracking to Record Year of Fundraising

Event

BAM reported Q3/22 and will host a conference call at 10:00 a.m. ET. Registration:

https://register.vevent.com/register/BI500b8aa08e984baeab1ebbd3bd66dad1

Impact: SLIGHTLY POSITIVE

Q3/22 Results: DE of $0.85/share was well above the Street/TDSI at $0.71. Core DE of $0.75/share beat our forecast of $0.69, driven by higher-than-expected earnings in insurance, and a larger-than-expected contribution from financial assets. Fee-related earnings were up 18% y/y as expected. Realized carried interest and gains on principal investments exceeded our forecast by ~$100mm, largely reflecting realizations in the credit strategies, and the sale of certain corporate financial assets.
Fee-Bearing Capital: Fee-bearing capital was up 19% y/y and up 4% q/q to $407bln, and BAM is on track for a record year of fundraising, with inflows of $33bln since Q2/22. The latest flagship infrastructure and private equity funds had first closes on $21bln and $8.4bln, respectively, during Q3/22, and in early- November, BAM launched the next vintage of its opportunistic credit strategy, which is expected to exceed the size of its $16bln predecessor. The latest flagship real estate fund had a final close on $17bln, and the company had inflows of $14bln across other strategies during Q3/22, most notably for the perpetual private infrastructure fund and the infrastructure debt fund, which we believe highlights the attraction for investors of the inflation protection associated with infrastructure.
Carried Interest: BAM recognized $131mm of gross carried interest in Q3/22, and indicated that, despite the slowdown in deal activity more broadly, cash-flow- generating, inflation-linked assets are still encountering strong demand. The gross unrealized carried interest balance was up ~2% q/q to $7.8bln at BAM's share.
Liquidity/Capital Deployment: BAM has a record $125bln of liquidity and the letter to shareholders highlights that the current market environment should present good opportunities across all businesses, but particularly the insurance business, which has largely been sitting on cash until now, and the Oaktree credit franchise, which is inherently countercyclical.
Distribution of Asset Manager: Shareholders approved the distribution and listing of 25% of the asset management franchise, which should be complete by year-end, and which we believe should be a positive catalyst for the stock, even against choppy market backdrop.