Brookfield Corporation · NYSE:BN
Brookfield — Brookfield Asset Management — Q3 2023 Earnings Presentation
36 slides from Brookfield's earnings presentation, November 2023
Slide 1: Brookfield Asset Management Investor Presentation
Brookfield Asset Management I N V E S T O R P R E S E N TAT I O N NOVEMBER 2023
Slide 2: Brookfield at a Glance
Brookfield at a Glance We are one of the largest and fastest growing alternative asset managers in the world, distinguished by a 100+ year history of owning and operating real assets and businesses, operating in over 30 countries BAM NYSE / TSX Ticker Renewable Power & Transition Infrastructure $54B
Slide 3: We Own the Backbone of the Global Economy
We Own the Backbone of the Global Economy We invest in high-quality, essential assets and businesses that form the backbone of the global economy $440B Fee-Bearing Capital Renewable Power Infrastructure Private Equity Real Estate Credit & Other & Transition $48B $97B $42B $100B $153B See Notice to R
Slide 4: Global Presence
Global Presence As a large-scale investor with on-ground operations in key regions around the world, we provide access to attractive investment opportunities globally ~200,000 ~2,500 ~2,000 Operating Investment and Asset Global Institutional Employees Management Professionals Clients Europe & North
Slide 5: Built on a 100-Year Foundation
Built on a 100-Year Foundation While the stock is new, our market leadership, commitment to clients and value-creation approach remain unchanged Experience Scale Essential Assets Everything we do—and every Our access to capital allows us We invest in long-life assets investment we make—is rooted to
Slide 6: The Brookfield Ecosystem
The Brookfield Ecosystem The Brookfield Ecosystem spans the core sectors that keep the global economy running Logistics & Energy Hospitality Self-Storage Transition Housing Mixed Use, Retail & Entertainment Solar Business Services Utilities Infrastructure Office Services Transport Hydro Wind Data Te
Slide 7: Positioned for Strong Growth
Positioned for Strong Growth 7
Slide 8: Why Are Investors Choosing to Invest in Alternative Assets?
Why Are Investors Choosing to Invest Their Growing Capital Base in Alternative Assets? 12-20% Excess returns Diversification 11-12% 7-10% Less volatility 0.5–5.0% Predictable cash flows Bond Yields1 Target 3 Public 2 Target Real 3 Private Equity Assets and Credit Returns Private Equity 1. As of Sept
Slide 9: Investors Worldwide Are Turning to Alternative Assets
Investors Worldwide Are Turning to Alternative Assets As institutional investors increase their allocations to alternatives, the overall industry saw rapid expansion and is estimated to grow to $23 trillion by 2026 Institutional Allocation Alternatives AUM2 to Alternative Assets1 ($ in Trillions) $2
Slide 10: The Consolidation Effect in Action
The Consolidation Effect in Action Investors have been consolidating their exposure in the asset management sector to the largest and most diversified managers Brookfield will seek to benefit from increased consolidation in the space 10
Slide 11: Positioned Around Massive Global Secular Tailwinds
Brookfield is Positioned Around Massive Global Secular Tailwinds Trillions of dollars will need to be invested as the world adapts to paradigm shifts Decarbonization Deglobalization Digitalization Our assets live at the epicenter of these decades-long megatrends 11 11
Slide 12: Strong Portfolio and Earnings Growth
Brookfield Has Strong Portfolio and Earnings Growth… With a 2023 target of $150 billion of capital inflows, we are on track to hit our target of ~$1T of fee-bearing capital in five years Fee-Bearing Capital Fee-Related Earnings (FBC) (FRE) $4.8B ~23% $1,014B ~19% CAGR CAGR $2.2B $440B $0.9B $129B 20
Slide 13: Increased Realized Carry Potential in the Future
…With Increased Realized Carry Potential in the Future As our carry-eligible capital continues to grow, carried interest will become a significant contributor in the future Total Brookfield Carry-Eligible Capital Gross Carried Interest ($ billions) to BAM $527 $496 $430 19% CAGR $2B Estimated Realiz
Slide 14: Selective Strategic Acquisitions Can Accelerate Growth
Selective Strategic Acquisitions Can Accelerate Growth A strategic acquisition of an asset manager would be incremental to BAM’s organic five-year growth targets New Asset Geographical Operational Access to Classes Capabilities Complementary LPs Technology Mid-Market U.S. Pensions Healthcare Europea
Slide 15: Cash Flow Stability and Resiliency
Cash Flow Stability and Resiliency 15
Slide 16: BAM Operates with Industry-Leading Metrics
BAM Operates with Industry-Leading Metrics ~100% 86% 55‒60% of DE is FRE Long-Term Capital Margin 15–20% ~90%+ No Debt Growth Targets Dividend Payout Ratio Asset-Light Balance Sheet 16
Slide 17: Superior Investment Performance Drives Inflows
Superior Investment Performance Drives Inflows… Our businesses are established, and our flagship funds have a history of producing strong returns for investors Renewable Power Infrastructure Private Equity Real Estate Credit & Transition Gross IRR 13% 16% 27% 23% 22% Net IRR 9% 12% 21% 19% 16% AUM $
Slide 18: Integrated Approach to Creating Sustainable Value
…with an Integrated Approach to Creating Sustainable Value We have long believed ESG is complementary to creating lasting value Catalyzing ESG Management & Winning Decarbonization Transparency Culture Transforming our operations ESG integration throughout the Health and safety operational in line wi
Slide 19: Diversified and Long-Term Capital Base
Diversified and Long-Term Capital Base 86% of our fee-bearing capital is long-term in nature, driving 94% of our fee revenues and creating a stable and predictable earnings base. Fee-Bearing Capital and Fee Revenue Composition $440B $1.1B Q3-23 Q3-23 FBC Fee Revenue ■ Long-Term Private Funds ■ Perma
Slide 20: Significant Available Liquidity to Make Additional Investments
Significant Available Liquidity to Make Additional Investments Dislocation in financial markets has historically created some of the most attractive risk-adjusted investment prospects for investors with substantial dry powder Uncalled Fund Commitments $45B Uncalled fund commitments $18 $17 not curre
Slide 21: Growth Prospects and Cash Flow Stability will Lead Future Success
Growth Prospects and Cash Flow Stability will Lead Future Success Differentiated strategy positioned at the epicenter of large global secular trends Proven track-record of successfully delivering above market-risk adjusted returns 85+% long term capital base leads to 90+% long-term cash flow stabili
Slide 22: Appendix
Brookfield Appendix
Slide 23: Third Quarter Financial Performance
Third Quarter Financial Performance Fee-Related Earnings (FRE) of $565 million ($0.35 / share), up 8% from the prior year period Distributable Earnings (DE) of $568 million ($0.35 / share), up 8% from the prior year period FOR THE PERIODS ENDED SEP. 30 (MILLIONS, EXCEPT PER SHARE AMOUNTS) Last Three
Slide 24: A Range of Alternative Investment Strategies
A Range of Alternative Investment Strategies Our strategies across debt and equities offer clients multiple access points along the risk-return spectrum Illustrative Risk-return Profile Debt Strategies Equity Strategies Mezzanine Core Core Plus Value Add Opportunistic Technology Growth Global Privat
Slide 25: Renewable Power and Transition
Renewable Power and Transition Brookfield is one of the most impactful renewable power and decarbonization investors, owners and operators $78B $48B 70 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Renewable Power and Transition business complements
Slide 26: Infrastructure
Infrastructure Brookfield is one of the world’s largest infrastructure investors, owners and operators $180B $97B 140 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Infrastructure business is ideally positioned at the epicenter of the global secular t
Slide 27: Private Equity
Private Equity Brookfield is one of the most experienced private equity investors $139B $42B 190 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Private Equity platform seeks to invest in high-quality businesses that provide essential products and serv
Slide 28: Real Estate
Real Estate Brookfield is one of the largest real estate investors with a diversified portfolio in the world’s most well-established markets $271B $100B 340 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Real Estate business seeks to build a diversifi
Slide 29: Credit and Insurance Solutions
Credit and Insurance Solutions Brookfield’s partnership with Oaktree has established it as one the largest and fastest-growing alternative credit managers $197B $153B 460 Assets Under Management Fee-Bearing Capital Investment Professionals1 Overview Asset Types • Our Credit business offers clients a
Slide 30: Our Leadership
Our Leadership Brookfield’s senior management team possesses deep experience in our target regions, sectors and asset classes, as well as decades of investment expertise built on managing assets and businesses across market cycles Brookfield Asset Management Bruce Flatt Chief Executive Officer, BAM
Slide 31: Endnotes
Endnotes 1. Asset under management ("AUM") refers to the total definitions: (a) Inflows include capital commitments of a fund by the percentage carried interest and by fair value of assets managed, calculated as follows: and contributions to our private and liquid strategies the amount of third-part
Slide 32: Notice to Readers
Notice to Readers Brookfield Asset Management Ltd. is not making any within this Investor Presentation include statements asset management business; foreign currency risk and offer or invitation of any kind by communication of this referring to the future state of the economy or the exchange rate fl
Slide 33: Notice to Readers (cont'd)
Notice to Readers (cont’d) STATEMENT REGARDING PAST AND FUTURE STATEMENT REGARDING USE OF NON-GAAP PERFORMANCE AND TARGET RETURNS MEASURES Past performance is not indicative nor a guarantee of We disclose a number of financial measures in this future results. There can be no assurance that Investor
Slide 34: Awards and Recognition
Awards and Recognition1 2021 2021 2021 2021 2021 Infrastructure Debt Fund Manager of the Renewables Refinancing Oil & Gas Refinancing Oil & Gas Manager of the Year – Year – North America Deal of the Year – Deal of the Year – Deal of the Year – Americas North America MENA MENA 2021 2021 2021 2020 202
Slide 35: Awards and Recognition (cont'd)
Awards and Recognition (cont’d)1 2020 2020 2019 2019 2019 Equity Fund Retail Investor Alternatives Investor Alternatives Investor Alternatives Investor Manager of the Year of the Year – North of the Year – Global of the Year – Asia of the Year – Europe America 2019 2019 2019 2019 2019 Firm of the Ho
Slide 36: Corporate and Regional Offices
Corporate and Regional Offices Corporate Offices United States Canada United Kingdom Australia China Brookfield Place Brookfield Place One Canada Square, Level 25 Level 19 Suite 1201, Tower B, One East 250 Vesey Street , 15th Floor 181 Bay Street, Suite 300 Canary Wharf 10 Carrington Street No. 736
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