Brookfield Asset Management Inc. Q3-2020 Earnings, Price Target Forecast

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Brookfield Asset Management (BAM.A,BAM –TSX, NYSE) is a global asset management company focused on real estate, renewable power, infrastructure and private equity. Real Estate is made up of office and retail properties; Renewable power is made up of hydroelectric, wind, solar, and storage generating facilities; Infrastructure is made up of utilities, transport, energy, data infrastructure, and sustainable resource assets; and Private Equity is focused on business services, infrastructure services, and industrial operations. Investments in subsidiaries includes a 51% interest in Brookfield Property Partners LP(BBY.UN), a 61% interest in Brookfield Renewable Partners LP(BEP.UN), 63% in Brookfield Business Partners LP(BBU.UN) and 30% in Brookfield Infrastructure Partners LP. In total including management and incentive fees these four subsidiaries contribute approximately 70% of funds from operations to Brookfield Asset Management. Brookfield Renewable Partners and the Private Equity/Alternative investments segments contribute the largest at approximately 30% each. Real Estate including Residential Construction contributes 20%, and 20% from Infrastructure . The Private Equity portion includes the 61% in Oaktree Capital. Approximately half of funds from operations are split between management fees and dividends from ownership interests in subsidiaries. Management fees include carried interests that pay Brookfield only after minimum return thresholds are met. Management services are provided to institutional investors, sovereign wealth funds and pension plans, along with thousands of individuals.

Total assets as of Sept-30-2020 were $327B plus $248B under management for a total of $575B. Assets under management include a 61% non-controlling interest in Oaktree Capital that was acquired in Sept-2019 for $2.1B of cash and $2.4B paid with 52.8M Brookfield Class A shares. Howard Marks the founder of Oaktree is the managing partner.

Brookfield Asset Management has as at Sept-30-2020, 1.5B Class A and 85,000 Class B shares, each with 50% of the votes.

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