Brookfield Asset Management Voting Ord Shs Class A T.BN.PF.H

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.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 Jan 09, 2023 10:54am

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Post# 35211069

TD

Have a US$47.00 target. GLTA

Brookfield Asset Management Ltd.

(BAM-N, BAM-T) US$29.78 | C$40.06

NCIB Established to Repurchase Up to 10% of the Public Float Event

BAM announced that the TSX has accepted a notice filed by BAM of its intention to commence an NCIB. Purchases will be made through the TSX, the NYSE, and/or alternative trading systems.

Impact: POSITIVE

We interpret this announcement as a signal of management's confidence in BAM's future business prospects, and of management's intention to repurchase stock opportunistically, as Brookfield has done historically. The NCIB enables the repurchase of up to 31.8mm shares, representing ~10% of the public float (current market value of ~$950mm), and extends from January 11, 2023 to January 10, 2024.
BAM is a leading global alternative asset manager that we see as very well- positioned in higher-demand areas: the company is dominant in infrastructure and renewables, a global leader in real estate, and a first-mover in transition investing.
As of December 28, 2022, BAM had ~412mm shares outstanding, representing a ~25% interest in the asset management franchise, with the remaining ~75% held by Brookfield Corp. Of the ~412mm shares outstanding, the public float consists of ~318mm shares.
BAM's initial balance sheet has no debt and includes ~$3bln of cash and financial assets, some of which will be required to run the business. We are forecasting 2023E distributable earnings (DE) of ~$2.3bln, of which BAM expects to pay out ~90% as dividends, leaving ~$235mm available for reinvestment; however, we note that BAM also has access to the considerable financial resources of its parent, Brookfield Corp.
BAM is trading at 18.9x 2023E and 15.3x 2024E fee-related earnings, multiples that we consider very reasonable for a unique franchise that is growing at ~20%. The current share-price offers a 4.3% dividend yield.