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 Report

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Post by retiredcf on Nov 13, 2021 2:27pm

TD Report

Brookfield Asset Management Inc.

(BAM-N, BAM.A-T) US$58.94 | C$74.22

Record Fund Inflows Should Drive Step-change Increase in FRE

Event

BAM reported Q3/21 results and provided a business update.

Impact: POSITIVE

Solid Q3/21 Results: Fee-related earnings grew 21% y/y to $451mm, on strong fundraising/deployment activity across the private funds and higher market capitalizations of the listed affiliates. FFO from invested capital was stable at $483mm, with strong same-store results partially offset by the impact of asset sales. Total FFO was $0.85/share, up 30% y/y, as BAM continues to harvest investments in a highly favourable capital-markets environment. Distributable earnings, a FCF proxy, totalled $0.77/share in Q3/21 and $4.23/share for the TTM.

Record Fund Inflows: Fee-bearing capital increased 18% y/y to $341bln, benefitting from record fundraising inflows of $34bln since the end of Q2/21, including $30bln for the flagship funds. The latest opportunistic credit fund has raised $16bln and should hold a final close in the coming weeks, a $9bln first close has been held on the next flagship real-estate fund ($17bln target), and a $7bln founders' close was held for the inaugural Global Transition Fund, which should hold a formal first close imminently. Fundraising for the sixth flagship private-equity fund commenced in late-September ($15bln target) and fundraising for the next flagship infrastructure fund should launch in early-2022 (likely ~$20bln-$25bln).

Unrealized Carried Interest Higher: BAM recognized $304mm of gross carried interest in Q3/21 and $1.8bln over the TTM, with the franchise having reached a key inflection point, whereby at least one fund in each flagship series is now recognizing carried interest. The company generated $1.0bln of unrealized carried interest in Q3/21, and the gross unrealized carried interest balance, a forward-looking metric, increased 11% q/q to $5.9bln (at BAM's share), primarily due to higher valuations in credit, as well as in the flagship infrastructure, real estate, and private-equity funds.
Record Liquidity: BAM has a record $80bln of available liquidity, including $14bln of core liquidity and $66bln of uncalled fund commitments. Capital deployment continues to be healthy, at $23bln in Q3/21 and $53bln for the TTM.

TD Investment Conclusion

We believe that an investment in BAM provides exposure to a high-quality portfolio of real assets, with the added leverage of a world-class asset-management franchise