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

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.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 2

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Post by retiredcf on Feb 12, 2021 9:41am

TD 2

They did indeed raise their target by over 10% to US$63.00. GLTA

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$42.57 | C$54.04

Q4/20 OFFO Beat; More Flagship Fundraising Launched

Event

BAM reported Q4/20 results and provided a business update.

Impact: POSITIVE

Q4/20 Results: OFFO was $0.66/share, well above the consensus estimate of $0.55 and our forecast of $0.53. Fee-related earnings were up 4% y/y to $411mm and FFO from invested capital increased to $644mm vs. $444mm in Q4/19.
Fee-bearing Capital: Fee-bearing capital increased 8% y/y and q/q to $312bln, with the sequential increase largely reflecting market appreciation across the listed affiliates/credit strategies, as well as capital raised/deployed in credit. BAM has embarked on its next round of flagship fundraising and sounds confident about its target of $100bln. The latest flagship distressed debt fund has raised $13bln to- date and should hold a final close in H1/21, and the company recently launched its fourth flagship real-estate fund as well as its inaugural Global Transition Fund, which is focused on decarbonizing the global energy grid, and should reach $7.5bln+ in size, including $2bln from BAM.
Carried Interest: BAM recognized a healthy $231mm of net carried interest in Q4/20, primarily related to realizations across the credit, private equity, and real- estate platforms. Despite strong carried interest realization, the net unrealized carried interest balance was up 14% q/q to $2.6bln, of which BAM expects to recognize 60% over the next three years, with Q1/21 likely to be particularly active.
BPY Privatization: BAM does not expect a take-private deal to negatively affect fee-related earnings, as fees would be prospectively determined based on NAV. A privatization would temporarily increase BAM's invested capital in real estate, but the company expects that its balance-sheet exposure to real estate would decline over time vs. current levels, based on the flexibility afforded by private ownership. We believe that portions of BPY's portfolio would be well-suited to seed perpetual core real-estate strategies, which should be accretive to fee-bearing capital.

TD Investment Conclusion

We see a prolonged period of near-zero interest rates as a favourable backdrop for BAM, as it should only increase investor appetite for alternative investment products as fixed-income substitutes. Furthermore, we anticipate that BAM will capitalize on market dislocation resulting from the pandemic to enhance its franchise, as it has done in previous cycles.