Bullboard - Stock Discussion Forum Brookfield Asset Management Voting Ord Shs Class A T.BN.PF.A

Primary Symbol: T.BAM Alternate Symbol(s): BAM | 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

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... see more

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TSX:BAM - Post Discussion

Brookfield Asset Management Voting Ord Shs Class A > TD

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Post by retiredcf on Feb 09, 2023 8:47am

TD

They currently have a US$47.00 target. GLTA

Brookfield Asset Management Ltd.

(BAM-N, BAM-T) US$34.71 | C$46.72

Q4/22 DE Beat; 2022 Fundraising was a Record $93bln Event

Q4/22 DE of $0.35/share beat the Street/TDSI at $0.31/$0.33. FRE were 9% above our expectations, while lower taxes were offset by lower earnings on financial assets.

Impact: SLIGHTLY POSITIVE

Fee-bearing Capital: FBC stands at $418bln, up 15% y/y and 3% q/q, based on a record $93bln of capital raised in 2022, including $14bln in Q4/22.
Fee-related Earnings: FRE were up 26% y/y in Q4/22, reflecting BAM's private fundraising success, partially offset by lower market caps for the perpetual affiliates (which have already partially recovered YTD). FRE also included a lumpy $45mm of transaction/advisory fees related to the insurance business.
Dry Powder: BAM has >$90bln of dry powder to invest against a macro backdrop, which favours its value orientation and ability to execute quickly at scale, particularly given that it can also access the considerable financial resources of Brookfield Corp. to facilitate large transactions.
Potential Fundraising Catalysts: BAM launched the fundraising for its latest opportunistic credit flagship fund in late-Q4/22, which should grow substantially vs. its $16bln predecessor. BAM should also hold final closes on its latest flagship infrastructure/private equity funds soon, with the infrastructure fund likely to comfortably surpass its $20bln predecessor, and the PE fund already equal in size to its predecessor, despite a tough PE fundraising environment. BAM recently launched its fifth flagship real-estate fund, which will likely be closely watched by investors, given some concerns regarding the outlook for real estate. The company also expects to launch its second transition fund in 2023, which should extend its first-mover advantage in transition investing.

TD Investment Conclusion

BAM is a leading pure-play alternative asset manager, which we see as well- positioned relative to its peers, based on its dominant position in infrastructure and renewables, global leadership in real estate, first-mover advantage in transition investing, and pre-eminent credit franchise (Oaktree). The company's distributable earnings are almost entirely composed of FRE, which are highly predictable, because they are underpinned by FBC that is very long term and/or perpetual (~83% of FBC). The balance sheet has zero debt, and the initial dividend, which represents an ~3.7% yield, should compound at ~15-20%/year, in line with FRE.