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 11, 2022 8:33am

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Post# 35090843

TD 3

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$44.71 | C$59.56

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

Event

Q3/22 DE/share of $0.85/share was well above the Street/TDSI at $0.71.

Impact: SLIGHTLY POSITIVE

Q3/22 Results: Core DE of $0.75/share beat our $0.69 forecast, driven by higher- than-expected contributions from insurance and financial assets. Realized carried interest/gains on principal investments also beat by ~$100mm, largely reflecting realizations in credit, and the sale of certain corporate financial assets.
Fee-bearing Capital: FBC of $407bln was up 19% y/y and 4% q/q. The latest flagship infrastructure and private equity funds had first closes on $21bln and $8.4bln, respectively, in Q3/22, and BAM launched the next vintage of its opportunistic credit strategy in early November, 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, most notably for the perpetual private infrastructure fund and the infrastructure debt fund, as investors seek the high inflation linkage associated with infrastructure.
Carried Interest: BAM recognized $131mm of gross carry in Q3/22, and is still seeing strong demand for cash-flow-generating, inflation-linked assets. The gross unrealized carried interest balance was up ~2% q/q to $7.8bln at BAM's share.
Liquidity/Capital Deployment: BAM's dry powder is a record $125bln, and the current macro backdrop should present good opportunities, particularly for the insurance business, which has largely been sitting on cash until now, and the inherently countercyclical Oaktree credit franchise.
Distribution of Asset Manager: Shareholders approved the distribution/listing of 25% of the asset management franchise, which should be complete by year-end.

TD Investment Conclusion

We view BAM as a core holding and see very substantial upside potential. The asset-management stub is trading at only ~12.8x 2023E FRE, a multiple that we find incredibly modest, considering that ~83% of the company's FBC is either very long- duration and/or perpetual, and in light of strong double-digit growth in FBC/FRE. We expect the listing of the asset manager to be an upside catalyst, even against a choppy market backdrop. Every 1x multiple point on 2023E FRE equates to ~$1.60/ share (~4% of the current share-price).