Wiki source code of Brookfield Asset Management

Last modified by Wilton Risenhoover on 2022/07/01 19:18
Show last authors
1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Brookfield Asset Management is a leading global alternative asset manager with over $625 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.
8 * The company operate in more than 30 countries on five continents around the world.
9 * The company's Asset Management activities encompass $312 billion of fee-bearing capital across a broad portfolio of real estate, infrastructure, renewable power, private equity and credit.
10 * As one of the world's largest investors in real estate, the company own and operate iconic properties in the world's most dynamic markets.
11 * Brookfield Asset Management is one of the world’s largest infrastructure investors, owning and operating assets across the utilities, transport, midstream and data sectors.
12
13 [[image:BAM0.png||height="183" width="687"]]
14
15 = Company Overview =
16
17
18 Brookfield Asset Management (NYSE:BAM, TSX:BAM.A) is a leading global alternative asset manager with over $625 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit. The company's objective is to generate attractive long-term risk-adjusted returns for the benefit of its clients and shareholders.{{footnote}}https://bam.brookfield.com{{/footnote}}
19
20
21 The company manage a range of public and private investment products and services for institutional and retail clients. The company earn asset management income for doing so and align its interests with its clients by investing alongside them. Brookfield Asset Management has access to large-scale capital enabling it to make investments in sizeable, premier assets and businesses across geographies and asset classes that few managers are able to do.
22
23
24 [[image:BAM1.jpg]]
25
26
27 == Subsidiaries ==
28
29 (% style="width:803px" %)
30 |(% style="width:416px" %)Ownership Interest Held by Non-Controlling Interests|(% style="width:189px" %) |(% style="width:104px" %) |(% style="width:91px" %)
31 |(% style="width:416px" %)As at December 31,|(% style="width:189px" %)(((
32 **Jurisdiction of Formation**
33 )))|(% style="width:104px" %)**2020**|(% style="width:91px" %)**2019**
34 |(% style="width:416px" %)**Brookfield Property Partners L.P. (“BPY”)**|(% style="width:189px" %)Bermuda|(% style="width:104px" %)38.30%|(% style="width:91px" %)44.80%
35 |(% style="width:416px" %)**Brookfield Renewable Partners L.P. (“BEP”)**|(% style="width:189px" %)Bermuda|(% style="width:104px" %)49.30%|(% style="width:91px" %)39.50%
36 |(% style="width:416px" %)**Brookfield Infrastructure Partners L.P. (“BIP”)**|(% style="width:189px" %)Bermuda|(% style="width:104px" %)71.50%|(% style="width:91px" %)70.40%
37 |(% style="width:416px" %)**Brookfield Business Partners L.P. (“BBU”)**|(% style="width:189px" %)Bermuda|(% style="width:104px" %)36.50%|(% style="width:91px" %)37.30%
38
39 = Business Segments =
40
41
42 == Real Estate ==
43
44 As one of the world's largest investors in real estate, the company own and operate iconic properties in the world's most dynamic markets. The company's global portfolio includes office, retail, multifamily, logistics, hospitality, triple net lease, manufactured housing and student housing assets on five continents.{{footnote}}https://www.brookfield.com/our-businesses/real-estate{{/footnote}}
45
46
47 **Office**
48
49 The company own, develop and manage office properties in key gateway cities in the U.S., Canada, the U.K., Germany, Australia, Brazil, India and South Korea.
50
51 * 318 Properties
52 * 167 M SF Commercial Space
53
54 **Retail**
55
56 The company's high-quality retail destinations are central gathering places for the communities they serve, combining shopping, dining, entertainment and other activities.
57
58 * 179 Locations, Predominantly In The U.S.
59 * 154 Million total Square Feet
60
61 **Multifamily**
62
63 The company's extensive multifamily portfolio makes it one of the largest owners and managers of residential apartment properties in the U.S. with ownership stakes in approximately 58,000 apartments.
64
65 * 156 Properties
66 * 51,595 Apartments
67
68 **Hospitality**
69
70 The company own and actively manage full-service hotels and leisure-style hospitality assets in high-barrier markets across North America, the U.K. and Australia.
71
72 * 16 Full-Service Hospitality Properties
73 * 140 Extended-Stay Hotels
74 * ~~31,000 Rooms
75
76 **Other**
77
78 The company drive value in high-quality assets in other sectors such as logistics, triple net lease, manufactured housing and student housing by focusing on leasing, financing, development, construction and facilities management.
79
80 * 159 Student Housing Properties
81 * 306 Triple Net Lease Assets
82
83 [[image:BAM2.jpg]]
84
85
86 == Infrastructure ==
87
88 Brookfield Asset Management is one of the world’s largest infrastructure investors, owning and operating assets across the utilities, transport, midstream and data sectors.{{footnote}}https://www.brookfield.com/our-businesses/infrastructure{{/footnote}}
89
90 The company's portfolio, grounded in 120 years of investment experience, provides diversified exposure to scarce, high-quality businesses with significant barriers to entry.
91
92 The company invest in infrastructure assets that deliver essential goods and services—from the movement of passengers and freight over toll roads and rail networks to the distribution of midstream and other products through ports and pipelines, and much more.
93
94
95 **Utilities**
96
97 Regulated or contracted businesses which warn a return on asset base.
98
99 * ~~7.0 Million Electricity And Gas Connections
100 * ~~4,200 Km Natural Gas Pipeline
101 * ~~2,700 Km Electricity Transmission Lines
102
103 **Transport**
104
105 Systems involved in the movement of freight, commodities and passengers.
106
107 * 32,300 Km Rail Operations
108 * ~~3,800 Km Toll Roads
109 * 13 Terminals And 2 Export Facilities
110
111 **Midstream**
112
113 Midstream operations that provide transmission and storage services.
114
115 * 15,000 Km Transmission Pipeline
116 * 600 Bcf Natural Gas Storage
117 * 16 Natural Gas Processing Plants
118
119 **Data**
120
121 Businesses that provide essential services and critical infrastructure to transmit and store data globally.
122
123 * 150,100 Operational Telecom Towers And Active Rooftop Sites
124 * 21,500 Km of Fiber Optic Cable And Backbone
125 * 54 Data Centers
126
127 [[image:BAM3.png]]
128
129
130 == Renewable Power ==
131
132 Brookfield Asset Management is one of the world's largest investors in renewable power, with over 20,000 megawatts of generating capacity. The company's assets, located in North and South America, Europe, India and China, comprise a diverse technology base of hydro, wind, utility-scale solar, distributed generation, storage and other renewable technologies.{{footnote}}https://www.brookfield.com/our-businesses/renewable-power{{/footnote}}
133
134
135 **Hydro**
136
137 The company's hydro power assets are characterized by a perpetual asset life, high cash margins, and storage capacity.
138
139 * ~~8,000 Mw Hydro Capacity
140 * 222 Hydro Generation Facilities
141 * 83 River Systems
142
143 **Wind**
144
145 The company's growing wind portfolio is diversified across attractive power markets in North America, South America, Europe and Asia.
146
147 * 2006 Development of First Wind Project
148 * ~~5,500 Mw Installed Capacity
149
150 **Solar**
151
152 One of the fastest-growing sources of renewable energy, utility-scale solar offers high cash margins and diverse and scalable applications.
153
154 * ~~2,200 Mw Installed Capacity
155 * 4 Continents
156
157 **Energy Transition**
158
159 The company's Energy Transition business includes its distributed generation and pumped storage assets.
160
161 The company's commercial and industrial distributed-solar generation portfolio offers consumers access to power at the point of consumption.
162
163 The company's pumped hydro facilities in the U.S. and U.K. help to stabilize the electrical grid.
164
165 * ~~1,400 Mw Distributed Generation Portfolio
166 * ~~2,700 Mw Pumped Storage Portfolio
167
168 == Private Equity ==
169
170 The company's private equity business is focused on acquiring high-quality businesses with barriers to entry and enhancing their cash flow capabilities by improving strategy and execution.{{footnote}}https://www.brookfield.com/our-businesses/private-equity{{/footnote}}
171
172
173 **Business Services**
174
175 The company's services businesses include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate.
176
177 * 1000+ Completed Construction Projects
178 * 600 Kt Biodiesel Production Capacity
179
180 **Industrials**
181
182 The company's industrials have strong market positions and include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development.
183
184 * 15 Million Clean-Water Customers In Brazil
185 * 170,000 Mt Returnable Plastic Packaging Production
186
187 **Residential**
188
189 Brookfield Asset Management has residential development operations in North America and Brazil. The company's North American business has operations in 10 key markets across the region.
190
191 * 83,000+ Single Family Lots
192 * 30+ Active Land Communities
193
194 [[image:BAM6.jpg]]
195
196
197 == Oaktree ==
198
199 Oaktree is a global alternative asset manager with a diversified mix of opportunistic, value-oriented and risk-controlled investments across credit and other investment offerings.{{footnote}}https://www.brookfield.com/our-businesses/oaktree{{/footnote}}
200
201
202 Oaktree’s experienced team of investment professionals, global platform and unifying investment philosophy—based on its six tenets of risk control, consistency, market inefficiency, specialization, bottom-up analysis and disavowal of market timing—have made it an acknowledged leader in credit investing.
203
204
205 In 2019, Brookfield acquired a majority interest in Oaktree, and it continues to operate as a standalone business. The two firms share fundamental values and an approach to investing that is long-term, value-driven and contrarian, with a focus on the downside protection of capital.
206
207
208 Together, Brookfield and Oaktree have $600 billion of assets under management and provide investors with one of the most comprehensive offerings of alternative investment products available today.
209
210
211 == Insurance Solutions ==
212
213 At Brookfield, the company provide capital efficient investment vehicles to its longstanding institutional insurance investors and the company deploy its own capital into the insurance sector through direct equity investments, reinsurance arrangements and hybrid solutions.{{footnote}}https://www.brookfield.com/our-businesses/insurance-solutions{{/footnote}}
214
215
216 The company's Insurance Solutions team is led by a group of experienced investment and insurance professionals. Leveraging its investment management capabilities across Brookfield and Oaktree, the company seek to match long-duration liabilities with portfolios of high-quality investments to generate attractive, risk-adjusted returns for it and its partners.
217
218
219 = Business Overview =
220
221 The company's Asset Management activities encompass $312 billion of fee-bearing capital across a broad portfolio of real estate, infrastructure, renewable power, private equity and credit, and Brookfield Asset Management has approximately $33 billion of additional committed capital that will be fee-bearing when invested. This capital is managed within long-term private funds, perpetual strategies and public securities1 . Together with its investment in Oaktree, Brookfield Asset Management has approximately 2,000 unique institutional investors across its private funds business.{{footnote}}https://www.brookfield.com/sites/default/files/2021-05/BAM-2020AnnualReport.pdf{{/footnote}}
222
223
224 [[image:BAM4.png]]
225
226
227 **Long-term Private Funds – $84 billion fee-bearing capital**
228
229 The company manage and earn fees on a diverse range of real estate, renewable power, infrastructure, private equity and credit funds. These funds are long duration in nature and include closed-end value-add, credit and opportunistic strategies.
230
231
232 **Perpetual Strategies – $94 billion fee-bearing capital**
233
234 The company manage perpetual capital in its publicly listed affiliates1 , as well as core and core plus private funds, which can continually raise new capital.
235
236
237 **Credit Strategies – $121 billion fee-bearing capital**
238
239 The company hold an approximate 62% interest in Oaktree, which provides a diverse range of long-term private fund and perpetual strategies to its investor base. Similar to its long-term private funds, the company earn base management fees and carried interest on Oaktree’s fund capital.
240
241
242 **Public Securities – $13 billion fee-bearing capital**
243
244 The company manage publicly listed funds and separately managed accounts, focused on fixed income and equity securities across real estate, infrastructure and natural resources. The company earn base management fees, which are based on committed capital and fund NAV, and performance income based on investment returns.
245
246
247 **Invested Capital**
248
249 Brookfield Asset Management has approximately $58 billion of invested capital on its balance sheet as a result of its history as an owner and operator of real assets. This capital provides attractive financial returns and important stability and flexibility to its asset management business.
250
251
252 == Global Reach ==
253
254 The company operate in more than 30 countries on five continents around the world.
255
256 The company's global reach allows it to diversify and identify a broad range of opportunities. Brookfield Asset Management is able to invest where capital is scarce, and its scale enables it to move quickly and pursue multiple opportunities across different markets. The company's global reach also allows it to operate its assets more effectively: the company believe that a strong on-the-ground presence is critical to operating successfully in many of its markets, and many of its businesses are truly local. Furthermore, the combination of its strong local presence and global reach allows it to bring global relationships and operating practices to bear across markets to enhance returns.
257
258
259 [[image:BAM5.png]]
260
261
262 = Financial Highlights =
263
264
265 Net income was $707 million in the year 2020, with a $134 million loss attributable to common shareholders ($0.12 per share) and the remaining income attributable to non-controlling interests.
266
267 The $4.6 billion decrease in consolidated net income and the $2.9 billion decrease in net income attributable to common shareholders were primarily attributable to:
268
269 * valuation losses of $1.7 billion in its real estate business both on consolidated and equity accounted investment properties mostly within its retail properties;
270 * an income tax expense of $837 million compared to $495 million in the prior year. The prior period benefited from the recognition of previously unrecognized tax losses; and
271 * higher depreciation expense primarily as a result of recent acquisitions; partially offset by
272 * contributions from acquisitions over the last twelve months.
273
274 Revenues for the year were $62.8 billion, a decrease of $5.1 billion compared to 2019, primarily due to the impact of the global economic shutdown.
275
276 Direct costs decreased by 10% or $5.3 billion compared to a 7% decrease in revenues. The decrease is primarily due to the aforementioned lower volumes at Greenergy and cost saving initiatives across a number of its businesses. These decreases were offset by higher direct costs related to recent acquisitions, net of dispositions, as well as incremental costs associated with organic growth initiatives at its operations.
277
278 Other income and gains of $785 million relate primarily to the sale of Nova Cold Logistics ULC (“Nova Cold”)1 in the first quarter, Simply Storage Inc. and Healthscope’s pathology business in the fourth quarter, as well as the partial sale of Dalrymple Bay Coal Terminal (“DBCT”)1 in the fourth quarter.
279
280 Depreciation and amortization expense increased by $915 million to $5.8 billion due to businesses acquired in the year, as well as the impact of revaluation gains in the fourth quarter of 2019, which increased the current year’s opening balance of its property, plant and equipment (“PP&E”) from which the current year depreciation is determined. These increases were partially offset by the impact of recent dispositions and foreign exchange.
281
282 Income tax expense increased by $342 million primarily attributable to the absence of the prior year deferred income tax recovery of $475 million which relates to the recognition of deferred tax assets due to the projected utilization of net operating loss carryforwards.
283
284
285 == Q2 2021 Result ==
286
287 August 12, 2021; Brookfield Asset Management Inc announced financial results for the quarter ended June 30, 2021.{{footnote}}https://bam.brookfield.com/sites/brookfield-ir/files/brookfield/bam/home/q2-2021-press-release.pdf{{/footnote}}
288
289
290 Nick Goodman, CFO of Brookfield, stated, “The company's business performed very well during the quarter, recording $1.2 billion of distributable earnings. Growth in its asset management franchise, steady returns on its principal investments and continued momentum on its capital recycling initiatives all contributed to the strong quarter. Subsequent to quarter end, the company held the first close of $9 billion for its fourth flagship real estate fund, and its $7 billion founders’ close for its Global Transition Fund, taking total fundraising since last quarter to $24 billion. The company expect the size of these two funds to exceed $30 billion before they close for capital.”
291
292
293 Funds from operations (FFO) and net income in the quarter were strong at $1.6 billion and $2.4 billion, respectively, both very large increases over last year.
294
295 The company's distributable earnings continue to show strong growth, recording $1.2 billion for the quarter, and $6.3 billion over the last twelve months, a 108% increase over the comparative period. The strong performance in the quarter is supported by a 49% increase in fee-related earnings, continued carried interest realizations, increased distributions from its principal investments, and disposition gains recognized on its principal investments.
296
297 Monetization activity continued during the quarter as the company sold $8 billion of investments, returned $6 billion to clients, and realized $335 million of gross carried interest in the process, taking the total realized since the beginning of the year to more than $1 billion. Investment performance was also very strong in the quarter with its unrealized carried interest balance, not recorded in its financial accounts, increasing to $6.2 billion.
298
299 Fee-bearing capital increased to $325 billion during the quarter, an increase of approximately $48 billion over the last twelve months, leading to a $334 million increase in fee-related earnings over the same period.
300
301 The company recorded $1.5 billion of realized carried interest into income over the last twelve months, including $335 million during the quarter.
302
303 Annualized fee revenues and target carried interest now stand at a run-rate of $6.7 billion.
304
305 As at June 30, 2021, the company had $78 billion of capital available to deploy into new investments.
306
307
308 = Recent developments =
309
310 **Brookfield Asset Management and Elion Partners Announce $1 Billion Strategic Partnership **{{footnote}}https://www.businesswire.com/news/home/20210923005245/en/{{/footnote}}
311
312 September 23, 2021; Brookfield Asset Management (“Brookfield”) and Elion Partners (“Elion”), a vertically integrated industrial specialist and sponsor of institutional real estate vehicles, today announced a $1 billion strategic partnership expanding Brookfield’s Real Estate Secondaries’ logistics portfolio across core infill markets.
313
314 Brookfield recapitalized Elion Logistics Park 55 (“ELP 55”), a Chicago master-planned industrial park with the potential to develop approximately $1 billion of industrial real estate. The project includes five existing Class A industrial assets totaling four million square feet that are 100% leased, as well as the potential to develop up to 15 million square feet of additional industrial properties going forward. The master-planned logistics park is located adjacent to the BNSF railway, offers numerous tenant amenities including essential travel and repair services, and benefits from tax increment financing. Park Madison Partners acted as the exclusive capital advisor for recapitalization.
315
316
317 “Industrial logistics real estate continues to experience positive momentum, and now is the logical time to seek long-term capital,” said Juan DeAngulo, Managing Partner at Elion. “This partnership structure and Brookfield’s support will enable Elion to fulfill the long-term development plans for ELP 55.”
318
319 “Brookfield Asset Management is excited about the partnership with Elion and the opportunity to gain exposure to high-quality industrial assets in supply-constrained markets with significant potential upside,” said Chris Reilly, Managing Partner at Brookfield.
320
321 The investment also included an $80 million equity commitment to Elion’s latest affiliated value-added fund, Elion Real Estate Fund V, which held its final closing last month achieving its hard cap of $500 million. A majority of Fund V’s portfolio was prespecified upon Brookfield’s commitment, representing more than 3.2 million square feet of logistics real estate across infill coastal markets.
322
323 Brookfield, one of the world's largest investors in real estate with over $200 billion in AUM, launched its Real Estate Secondaries business a year ago. The strategy is focused on GP investors who are looking for flexibility and liquidity in managing their private market investments.
324
325
326 = References =
327
328 {{putFootnotes/}}
This site is funded and maintained by Fintel.io