Brookfield Asset Management Inc · NYSE:BAM
Brookfield Asset Management — Investor Day (2024)
181 slides from Brookfield Asset Management's investor day presentation, 2024
Slide 1: Brookfield Asset Management
Brookfield Asset Management
Slide 2: Agenda
Agenda 10:00 AM The Table Is Set With Secular Tailwinds in Our Favor Bruce Flatt 10:10 AM Doubling the Size of Our Business Connor Teskey 10:30 AM Fundraising Strategy David Levi 10:50 AM Five-Year Financial Plan Hadley Peer Marshall 11:10 AM Break 11:30 AM Platform Updates Hosted by Anuj Ranjan 12:
Slide 3: The Table Is Set With Secular Tailwinds in Our Favor
The Table Is Set With Secular Tailwinds in Our Favor Bruce Flatt, Chief Executive Officer 3
Slide 4: Brookfield Asset Management today
Brookfield Asset Management today A leading global asset manager ~$1T NYSE / TSX: BAM ~$70B implied market value of asset manager $2.2B+ fee-related earnings Assets Under Management ~$515B fee-bearing capital ~2,400 asset management employees globally and ~240,000 operating employees Best-in-class t
Slide 5: What brought us here
What brought us here $1T AUM 2024 $3B AUM 2001 Owner-operator Launched property business 1899 Renewable business went public 1995 Launched asset management business with formation of first private equity fund 1999 Listed public affiliate entities 2001 Established first private infrastructure fund 20
Slide 6: The past 20 years have seen major tailwinds that should continue
The past 20 years have seen major tailwinds that should continue $25T $2T Alternatives AUM Alternatives AUM ~15% ~5% Global AUM Global AUM 2002 2022 Sources: Preqin; Bain analysis; PwC 6
Slide 7: We have a heritage of building businesses
We have a heritage of building businesses — this is more important now than ever 1 2 3 4 Pick good Raise Invest Operate Generate sectors capital well excellent risk-adjusted returns 7
Slide 8: Pick good sectors: The Backbone expands
1. PICK GOOD SECTORS The Backbone expands—and we adapt with it Telecom Towers / Railroads / Ports Data Centers Solar / Batteries / Hydro Then Today Nuclear Logistics / Housing / Pipelines Hospitality 8
Slide 9: Our access to capital is unparalleled
2. RAISE CAPITAL Our access to capital is unparalleled Longstanding partnerships with the largest, most sophisticated institutional investors Globally diversified reach Access to Brookfield’s permanent capital and insurance business, with no capital requirement from BAM 9
Slide 10: An established blueprint for building businesses
3. INVEST An established blueprint for building businesses Identify investments with secular tailwinds Assess opportunities to build or buy Our approach Leverage the Brookfield Ecosystem Scale through organic and inorganic growth 10
Slide 11: Sometimes we build
Sometimes we build Renewables expertise… …growing into energy transition Renewable Power & Transition FBC ($B) • Flagship Transition Fund $64 • Catalytic Transition Fund 25% CAGR $21 • Renewables Sidecar • Credit Opportunities 2018 2024 Note: 2024 FBC includes targeted fund size for BGTF II, which i
Slide 12: Sometimes we buy
Sometimes we buy Expanding our credit platform by adding Oaktree… …enabled further growth • Insurance Platform • Private Wealth • Other Partnerships 12
Slide 13: We invest with an owner-operator mindset
4. OPERATE WELL We invest with an Enabled by an Owner-operator mindset Owner-operator structure Partnership approach aligns interests and Brookfield perpetual capital anchors goals with our clients every fund • Operational improvements create value • Decentralized teams connected by differentiated i
Slide 14: Strong operating culture is key to our success
Strong operating culture is key to our success Our values Disciplined Entrepreneurial Collaborative Our approach Owner-Operators Long Term View Focus on Operational Excellence 14
Slide 15: We have delivered strong results over the long term
GENERATE EXCELLENT RISK-ADJUSTED RETURNS We have delivered strong results over the long term… Fund Gross IRR Net IRR Infrastructure / Renewable Power 15% 12% Private Equity 27% 21% Real Estate 21% 17% Opportunistic Credit 22% 16% Transition n.m. n.m. ~$225 billion of profits generated for investors
Slide 16: Delivering exceptional results propels a virtuous cycle
…and delivering exceptional results propels a virtuous cycle Reinvestment in Disciplined the Brookfield Ecosystem investment approach Excess risk-adjusted Strong, sustained performance returns Larger-scale Enhanced LP potential investments relationships Expanded capital base 16
Slide 17: Key takeaways
Key takeaways Long history as owner- Sustainable growth Tremendous operator has provided model that has opportunities for growth excellent foundation consistently delivered ahead—and we are for growth outstanding results just getting started 17
Slide 18: Doubling the Size of Our Business
Doubling the Size of Our Business Connor Teskey, President 18
Slide 19: First $1T and next $1T of AUM
First $1T 25 Years of AUM Next $1T <5 Years of AUM See Notice to Recipients and Endnotes, including endnotes 1 and 12. 19
Slide 20: Consistent growth from historical strengths
Consistent growth from historical strengths, while steadily building a foundation for the future 20
Slide 21: There is much more to come for alternatives
There is much more to come for alternatives $60T+ $25T Alternatives AUM Alternatives AUM 20%+ ~15% $300T+ $150T+ Global AUM Global AUM 2032E 2022 Sources: Preqin; Bain analysis; PwC; Company estimates 21
Slide 22: Our leadership positions set us up to outgrow the market
Our leadership positions set us up to outgrow the market We have positioned ourselves as a leader within our sectors of focus across the Brookfield Ecosystem Renewable Power Infrastructure Private Equity Real Estate Credit & Transition Largest global Leading infrastructure Best-in-class PE One of th
Slide 23: Compounding multipliers of growth create significant tailwinds
Compounding multipliers of growth create significant tailwinds Diverse Growth Drivers for BAM Leadership Global AUM Alternatives position in fastest- growth growth growing areas 23
Slide 24: Our business model is simple and effective
Our business model is simple and effective… Our structure provides access to all major pools of capital and provides a range of investors with a tailored approach to meet their objectives Fundraising channels Investing in attractive, durable asset classes • Institutional Infrastructure • Insurance B
Slide 25: Positions us to double our business in the next five years
…and positions us to double our business in the next five years Enhancing Diversifying & scaling Building & buying fundraising channels product offerings new businesses All underpinned by our unmatched alignment between management, shareholders and clients 25
Slide 26: Growing our sources of capital while expanding into new ones
ENHANCING FUNDRAISING CHANNELS We are growing our sources of capital while expanding into new ones New Sources of Capital: Tremendous Growth • Insurance Solutions • Private Wealth • Manager Acquisitions • Strategic Partnerships Existing Sources of Capital: More to Do • Institutional Investors • Publ
Slide 27: Opportunities to scale existing sources of capital
ENHANCING FUNDRAISING CHANNELS Opportunities to scale existing sources of capital Our flagships are still scaling – new vintages We are well positioned in the outsize those that are monetizing fastest-growing geographies Inflows Distributions LTM 50%+ BIF V Brookfield Asset BIF I $30B Strategy Manag
Slide 28: Capturing the significant retail demand for alternatives
ENHANCING FUNDRAISING CHANNELS Capturing the significant retail demand for alternatives Case Study: Private Wealth Sales 50 $10T $25 Total Private Wealth AUM <$1 0 Client Allocations ($B) Platforms / Wirehouses 1-2% 2021 2024 Current Allocation to Alternatives 28
Slide 29: Uniquely positioned to rapidly capture insurance capital
ENHANCING FUNDRAISING CHANNELS Uniquely positioned to rapidly capture insurance capital Insurance Fee-Bearing Capital ($B) $88 Significant market opportunity Strong duration match to credit and real estate focus $27 Ability to generate management fees $22 and additional fund capital fees No capital
Slide 30: Public affiliates provide unmatched access to public capital
ENHANCING FUNDRAISING CHANNELS Public affiliates provide unmatched access to public capital for our private funds Public Equity BIP Largest LP in all Public Preferreds BEP c our related BBU flagship funds Public Debt ~$60B Total Market Value 30
Slide 31: Developing products around the largest secular tailwinds
DIVERSIFYING & SCALING PRODUCT OFFERINGS We are developing products around the largest and fastest- growing secular tailwinds Digitalization Decarbonization Deglobalization 31
Slide 32: Our ability to execute innovative transactions
DIVERSIFYING & SCALING PRODUCT OFFERINGS Our ability to execute innovative transactions should continue to drive growth $20B $7B $10B $4B $10B+ $4B Note: $ values represent Total Enterprise Value of each transaction shown. 32
Slide 33: We are at the forefront of the AI revolution
DIVERSIFYING & SCALING PRODUCT OFFERINGS We are at the forefront of the AI revolution Our capabilities across the Brookfield Ecosystem are at their best when multiple trends combine Data Centers Green Power Science & Innovation Over 140 operating data centers Largest corporate provider of green 2M+
Slide 34: Growth will be broad based across our business
DIVERSIFYING & SCALING PRODUCT OFFERINGS Growth will be broad based across our business Equity Private Global Institutional Flagship Opportunistic Control Credit Public Niche Retail Specialty Core Non-Control 34
Slide 35: Planting seeds for future franchises
DIVERSIFYING & SCALING PRODUCT OFFERINGS Planting seeds for future franchises New Strategies Brookfield Brookfield Middle East Catalytic Infrastructure Income Partners Transition Fund Brookfield Infrastructure Technology Structured Solutions Secondaries 35
Slide 36: Areas of potential future growth
BUILDING & BUYING NEW BUSINESSES Areas of potential future growth Financial Healthcare Artificial Underpenetrated Credit Infrastructure Intelligence Geographies Verticals 36
Slide 37: Partnering to expand our capabilities
BUILDING & BUYING NEW BUSINESSES Partnering to expand our capabilities 2021 2023 2019 2022 2024 37
Slide 38: Ambitious long term targets to achieve by 2029
We have set ambitious long term targets that we plan to achieve by 2029 $2T $1T+ $5B AUM Fee-Bearing Capital Fee-Related Earnings See Notice to Recipients and Endnotes, including endnotes 1, 3, 4, and 12. 38
Slide 39: Key takeaways
Key takeaways Our leadership position and track record of delivering attractive returns provide a strong foundation for future growth Enhancing fundraising channels, scaling product offerings, and building and buying new businesses will drive our success We intend to exceed our long term growth obje
Slide 40: Fundraising Strategy
Fundraising Strategy David Levi, Chief Executive Officer, Global Client Group 40
Slide 41: Agenda
Agenda 1 2 3 We are set to meet Our global platform Targeted strategies will evolving client needs and innovative deliver growth across partnership approach our diverse fundraising sets us apart channels 41
Slide 42: Fundraising strategy can support annual growth of 16%
Our fundraising strategy can support annual growth of 16% over the next five years to increase fee-bearing capital to $1.1 trillion See Notice to Recipients and Endnotes, including endnotes 3 and 12. 42
Slide 43: Key themes driving fundraising for Brookfield
Key themes driving fundraising for Brookfield Alternatives allocations expected to grow to $60+ trillion by 2032 Global institutional demand is strong and increasing Investors seek to consolidate and streamline The wealth channel is growing quickly—this is only the beginning 43
Slide 44: How Brookfield differentiates for our clients
How Brookfield differentiates for our clients Breadth and specialization – at the same time Operational expert, not financial engineers Global capabilities with local mindset Partnership mentality with 360° engagement – investors are more than “just an LP” Access to co-investment, partnership opport
Slide 45: Product evolution has already been successful
Product evolution has already been successful… 10+ ~20% 8 New strategies Share of fundraising from Tailored strategies launched launched in the new products launched in in collaboration with clients past three years the past three years See Notice to Recipients and Endnotes, including endnote 5. 45
Slide 46: With more to come
…with more to come Leverage newer strategies to drive fundraising Successor funds New business lines Adjacent/step-out strategies Strategic partnerships 46
Slide 47: Platform, scale and expertise to address client needs
We have the platform, scale and expertise to address current market dynamics and client needs Our Platform Our Presence 30 offices Europe & Investment capabilities Americas Middle East spanning asset classes most $668B AUM $194B AUM 290 Investment in demand 850 Investment Professionals Professionals
Slide 48: Our relationships and commitment to clients globally
OUR RELATIONSHIPS Our relationships and commitment to clients globally is significant Europe & Americas Middle East Asia Pacific 1,400 Relationships 500 Relationships 350 Relationships 246 Relationship 71 Relationship 59 Relationship Professionals Professionals Professionals See Notice to Recipients
Slide 49: More than 'just an LP'
More than ‘just an LP’ Large Brookfield commitments to our funds aligns interests Over the past 10 years, we have provided over $40B of co-investment and co-underwrite Meaningful engagement in our clients’ businesses, assets and objectives 49
Slide 50: Our business model is simple and effective
Our business model is simple and effective Fundraising channels Investing in attractive, durable asset classes • Institutional Infrastructure • Insurance Brookfield Transition Capital • Private Wealth raising Asset Investing Real Estate • Public Markets Management Private Equity Credit 50
Slide 51: Four unique and diverse pools of capital
Our asset management business benefits from four unique and diverse pools of capital that will drive fundraising growth Institutional Insurance Private Wealth Public Markets Partnering with Enabling insurance clients Delivering alternative Providing unmatched sophisticated institutions to gain acces
Slide 52: Institutional
Institutional 52 52
Slide 53: We are already a trusted partner
We are already a trusted partner… 39 of top 50 ~35% of Fundraising Largest institutional alternatives Sourced from the top 50 largest allocators are clients institutional alternatives allocators over the past five years Sources: Preqin, August 2024 Fundraising represents capital raised for Brookfiel
Slide 54: …but we can do even more
…but we can do even more ~2% Allocation Brookfield market share from top 50 largest institutional alternatives allocators Deepening relationships by redefining partnerships Programmatic approach Tailored investment programs to meet client needs and desires Product development in partnership with cli
Slide 55: Middle-market institutions, family offices and insurers are underpenetrated
Middle-market institutions, family offices and insurers are key but underpenetrated segments 3% of Fundraising 9% of Fundraising 10% of Fundraising Sourced from family offices Sourced from U.S. Sourced from middle-market plans between $2–15B third-party insurers globally Dedicated client teams Tailo
Slide 56: Broader tailwinds benefiting our institutional business
In addition, there are broader tailwinds benefiting our institutional business Allocations to alternatives are on the rise globally A more sophisticated and diversified approach to allocations is evolving… • Differentiated risk/return mandates • Increasing transition allocations • Dedicated infrastr
Slide 57: Insurance
Insurance 57 57
Slide 58: Growing our partnership with Brookfield Wealth Solutions
Continuing to grow our partnership with Brookfield Wealth Solutions We have built out significant in-house capabilities to support the growth of Brookfield Wealth Solutions $200B+ Regulatory capital, reporting and structuring Target growth of expertise across multiple jurisdictions Brookfield Wealth
Slide 59: Bringing capabilities to third-party insurance companies
Now bringing these significant capabilities to other third-party insurance companies Brookfield’s philosophy of investing in long-life, high-quality assets and businesses is well suited to support policyholder obligations 150 existing relationships with third-party insurance companies SMAs Private F
Slide 60: Private Wealth
Private Wealth 60 60
Slide 61: We have built a private wealth business for scale
We have built a private wealth business for scale Dedicated team of …offering Brookfield …resulting in more 150+ professionals in and Oaktree’s than 210 investment 10 markets around unmatched expertise solutions on 160+ the world… in real assets, private global wealth equity and credit… platforms ov
Slide 62: Capabilities tailored for global private wealth
In addition to our core offerings, we have tailored our capabilities for global private wealth Real Estate Credit Infrastructure Private Equity Americas Coming soon: An innovative private Europe equity offering designed specifically for Wealth Asia 62
Slide 63: Investor and advisor sentiment about alternatives
Investor and advisor sentiment about alternatives reinforces the opportunity for growth 70% 72% 91% of investors who are of advisors consider of advisors agree that not using alts said alternatives a key building a strong they would start if driver for the growth working knowledge of their advisor o
Slide 64: Our strategy ahead
Our strategy ahead Broadening our presence in key markets Localizing our strategies to meet regional needs Tailoring our leading private equity capabilities Supporting the growing demand for education and practice management 64
Slide 65: Continuing to scale our business to meet clients' needs
We continue to scale our business to meet our clients’ needs 2021 $7B 30% Established 2024 Targeted CAGR Sales Target Over the Next Three Years See Notice to Recipients and Endnotes, including endnote 12. 65
Slide 66: Bringing It All Together
Bringing It All Together 66 66
Slide 67: Expect to reach $1.1 trillion in fee-bearing capital
Over the next five years, we expect to reach $1.1 trillion in fee-bearing capital See Notice to Recipients and Endnotes, including endnotes 3 and 12. 67
Slide 68: How do we get there?
How do we get there? Doing more with existing partners Deepening relationships with insurance, middle market and family office Continued product development and tailoring Supporting needs of advisors and investors in private wealth Broader market tailwinds are massive Delivered by the global client
Slide 69: Five-Year Financial Plan to Double the Business
Five-Year Financial Plan to Double the Business Hadley Peer Marshall, Chief Financial Officer 69
Slide 70: Agenda
Agenda 1 2 3 4 Stable, Predictable, Balance Sheet Enhancing Corporate Our Five-Year Growing Earnings Strategy Supports Structure and Expanding Financial Plan Profile Growth Shareholder Base 70
Slide 71: Stable, Predictable, Growing Earnings Profile
1 Stable, Predictable, Growing Earnings Profile 71 71
Slide 72: Long term and perpetual capital creates earnings stability
STABLE Long term and perpetual fee-bearing capital creates earnings stability 13% 87% of FBC is long term or permanent in nature 24% $514B 48% contributes FBC ~95% of base management fees 15% Long Term Permanent Capital Vehicles Perpetual Strategies Liquid Strategies See Notice to Recipients and End
Slide 73: Asset-light model and no debt
PREDICTABLE Operate with an asset-light model and no debt Limited realized carried interest in the near term ~ 100% of distributable earnings are comprised of highly predictable fee-related earnings 73
Slide 74: Positioned around significant growth trends
GROWING We are positioned around significant growth trends Leadership position in the largest and fastest-growing alternative asset classes Fundraising capabilities across all major channels A diversified product offering across all major investment themes Track-record of expansion, both organically
Slide 75: Results demonstrate stability, predictability and growth of earnings
Our results demonstrate the stability, predictability and growth of our earnings… 15% CAGR $2,281 $2,194 $1,975 $500 $2,000 $1,643 $514 $440 $400 $1,500 $1,345 $392 $300 $325 $1,000 $277 $200 $500 $100 $0 $0 2020 2021 2022 2023 2024 LTM Periods FBC ($B) FRE ($M) …and should continue to drive earning
Slide 76: Balance Sheet Strategy Supports Growth
2 Balance Sheet Strategy Supports Growth 76 76
Slide 77: We have a bulletproof balance sheet
We have a bulletproof balance sheet Strong liquidity is a top priority $1.9B Zero >$5B Future Debt Cash on Hand Debt Capacity at Very High-Grade Ratings We have thoughtfully built our balance sheet to support future growth 77
Slide 78: Balance sheet will boost growth by building and buying
BAM’s balance sheet will boost growth by building and buying Seeding Complementary Strategies Supporting M&A 78
Slide 79: Record of successfully launching new strategies
BUILDING We have a record of successfully launching new strategies 1 Client Driven 2 Value Add Demand for strategy Well positioned to be a market leader 3 Scalable 4 Aligned Large growth opportunity Confidence in strategy through alignment New strategies are opportunity rich and supported by the ent
Slide 80: Strong alignment with investors in an asset-light model
Strong alignment with investors in an asset-light model – BN is still our largest supporter Fund Commitments Made Since BAM Spin-Off $1.6B • Majority of our GP commitments will be made by our Brookfield related parties • Enables our asset-light strategy • Ensures alignment of interest with clients $
Slide 81: Criteria when selecting a manager to partner with
BUYING When selecting a manager to partner with, we focus on those that are… 1 Additive 2 Complementary to existing capabilities LP crossover and geographic opportunities 3 Scalable 4 Culturally Aligned Significant growth opportunity Similar approach to value creation 81
Slide 82: Strategic partnerships have accelerated growth
Strategic partnerships have enhanced our capabilities, broadened our reach and accelerated growth 2021 2023 2019 2022 2024 We currently have embedded options with our existing partner managers to acquire ~$250 million of FRE over the next five years See Notice to Recipients and Endnotes, including e
Slide 83: Enhancing Corporate Structure and Expanding Shareholder Base
3 Enhancing Corporate Structure and Expanding Shareholder Base 83 83
Slide 84: Spinning out BAM has expanded our shareholder base
Spinning out BAM has helped simplify our story and we have significantly expanded our shareholder base 84
Slide 85: Goal to broaden BAM's shareholder base
Our goal is to continue to broaden BAM’s shareholder base and gain access to the deepest pools of capital 85
Slide 86: Feedback on how to broaden our shareholder base
The most common feedback from investors on how to broaden our shareholder base: BAM Institutional Shareholders Increase liquidity of BAM stock Non U.S. U.S. Position BAM for inclusion in global ~50% ~50% stock indices, including the U.S. Note: Represents institutional shareholder base (excluding ins
Slide 87: Options to deliver on these outcomes
We are considering options to deliver on these outcomes Examples of Potential Enhancements 1 2 3 Exchanged ~$70B BAM ULC BAM Ltd. shares for BAM Ltd. shares Market Cap Move Head Privately held interest of BAM’s market cap will Office to NYC – asset manager then reflect 100% of the our largest office
Slide 88: What will not change
We are considering options to deliver on these outcomes What Will Not Change 1 2 3 4 BN BN Remains Remain Canadian Non-Taxable / No Changes to 73% Shareholder Incorporated Same Dividend Treatment Business Operations Note: Subject to all required regulatory and other approvals. 88
Slide 89: Our Five-Year Financial Plan
4 Our Five-Year Financial Plan 89 89
Slide 90: Broad-based growth across the business over five years
We expect broad-based growth across the business over the next five years Flagship Funds Complementary Strategies Credit Business 90
Slide 91: Flagship funds continue to scale
FLAGSHIPS Flagship funds continue to scale and provide a foundation for growth $75B ~$90B ~$105B Prior Fund Round Current Fund Round Next Fund Round We forecast $125B+ of inflows from flagship funds over the next five years See Notice to Recipients and Endnotes, including endnotes 8 and 12 . 91
Slide 92: Flagships are foundational for expansion into complementary funds
Flagships are foundational for expansion into complementary funds Fund expansion into complementary products has compounded growth exponentially BIF 2008 Asia BID BSIP Renewables BGTF 2015 2018 2024 2021 BISS CTF 2024 2024 BII 2023 92
Slide 93: Growing out complementary fund offerings
COMPLEMENTARY We continue to grow out our complementary fund offerings 2019 2024 2028–29 Inflows Inflows Average Inflows ~$5B ~$50B ~$60B We forecast $260B+ of inflows from complementary strategies over the next five years See Notice to Recipients and Endnotes, including endnote 12. 93
Slide 94: Credit growth driven by multiple fundraising channels
CREDIT Credit growth will be driven by multiple fundraising channels 20% CAGR $590B $50+ Third-party SMA $200+ ~50% $238B Brookfield Private Credit $90+ Wealth Solutions Flagship and ~30% Complementary Funds Private Credit 2024 2029 We forecast $350+ billion of net inflows from credit over the next
Slide 95: Growth to $1T+ of fee-bearing capital
Strong tailwinds fuel our growth to $1T+ of fee-bearing capital $85B+ ~$1.1T Other $160B+ Return of Capital $250B+ Insurance Solutions $514B $260B+ Complementary $125B+ Strategies Flagship Funds 2024 2029 See Notice to Recipients and Endnotes, including endnotes 3, 8, 9 and 12. 95
Slide 96: Long term and permanent capital base will continue to grow
Our long term and permanent capital base will continue to grow 2024 2029 13% 8% 87% 49% Growing 29% 92% 24% Long Term or To Long Term or 54% Permanent Permanent 9% 14% Long Term Permanent Capital Vehicles Perpetual Strategies Liquid Strategies See Notice to Recipients and Endnotes, including endnote
Slide 97: Growth is driven across all our business groups
Growth is driven across all our business groups ($ billions) 2024 2029 Renewable Power & Transition $52 $110 Infrastructure 91 160 Private Equity 40 90 Real Estate 93 140 Credit 238 590 16% Total Fee-Bearing Capital $514 $1.1T CAGR See Notice to Recipients and Endnotes, including endnotes 3 and 12.
Slide 98: Growth in fee-bearing capital will propel earnings
Growth in fee-bearing capital will propel earnings ($ millions) 2024 2029 Fee Revenues $4,476 $8,750 Direct Costs (2,071) (3,500) Fee-Related Earnings at 100% 2,405 5,250 Non-Controlling Interests (124) (250) Fee-Related Earnings to BAM $2,281 $5,000 17% CAGR FRE per share $1.40 $3.06 LTM periods Op
Slide 99: Further upside in carried interest
With further upside in carried interest We are steadily growing our carried interest base with realizations beginning to impact earnings in 2029, creating the second leg of growth Gross Carried Interest to BAM ~$2B Growing To ~$7B Estimated Realizations Estimated Realizations in 2029 in 2034 See Not
Slide 100: Carried interest further increases earnings growth
The impact of carried interest further increases our earnings growth ($ millions) 2024 2029 Fee-Related Earnings $2,281 $5,000 Equity-Based Compensation and Other Income 178 150 Realized Carried Interest, Net of Costs 10 850 19% CAGR Distributable Earnings Before Taxes $2,469 $6,000 Cash Taxes (220)
Slide 101: Key takeaways
Key takeaways 1 Our high-quality earnings profile is well positioned around significant growth trends 2 Our balance sheet will be used to seed complementary strategies and support M&A 3 15%+ target dividend growth will come from continued scaling of our flagships, expansion of complementary products
Slide 102: Break
Break 102
Slide 103: Platform Updates
Platform Updates Anuj Ranjan, Managing Partner, Brookfield 103
Slide 104: Our business model is simple and effective
Our business model is simple and effective Fundraising channels Investing in attractive, durable asset classes • Institutional Infrastructure • Insurance Brookfield Transition Capital • Private Wealth raising Asset Investing Real Estate • Public Markets Management Private Equity Credit 104
Slide 105: Competitive advantages across all our business groups
Competitive advantages across all our business groups Scale and Global Sourcing Owner-Operator Access to Leveraging the Footprint Capabilities History Debt Capital Brookfield Ecosystem 105
Slide 106: Infrastructure
Infrastructure Sikander Rashid Managing Partner and Head of Europe Infrastructure 106
Slide 107: Best-in-class capabilities; infrastructure super-cycle
Brookfield’s best-in-class capabilities Infrastructure super-cycle is driving significant capital needs Opportunities to create solutions and drive growth 107 107
Slide 108: Leading infrastructure asset manager with long term track record
Brookfield is the leading infrastructure asset manager, with an outstanding long term track record 108
Slide 109: World's largest infrastructure investor
Leading position as the world’s largest infrastructure investor $191B Key Sectors North America Total Business AUM Europe & Utilities $76B Middle East $63B $54B 140 Asia Pacific Data $56B Investment Professionals $44B Transport South $46B 53,000 America $17B Midstream Operating Employees $24B See No
Slide 110: Diverse capabilities tailored to any infrastructure investment
Diverse capabilities that can be tailored to any infrastructure investment Structured Equity Core Plus/ Target Return Value Add Core Mezzanine Lower Risk Higher 110
Slide 111: Operations-oriented approach that drives value
Established operations-oriented approach that drives value Enhanced Accretive Growth Capital Structure Thoughtful Contracting Profile Projects Optimization Exits Majority of the value is created through operational improvements 111
Slide 112: Investment spotlight
Investment spotlight Value creation through operations-oriented approach 80% of third-party Incremental commitment of $10B growth de-risked at accretive returns SEK 16B project finance Sale of fiber business 112
Slide 113: Infrastructure supercycle driving unprecedented opportunities
The infrastructure supercycle is driving unprecedented opportunities globally 113
Slide 114: The need for infrastructure investment has never been greater
The need for infrastructure investment has never been greater $94 trillion of investment required by 2040 ~$94 Trillion ~$15 ~$12 Trillion Trillion Source: “Global Infrastructure Outlook” (Oxford Economic). Data sourced as of August 2023. 114
Slide 115: Private capital is critical to funding the supercycle
Private capital is critical to funding the infrastructure supercycle Governments and Three Ds are driving Private capital is stepping corporates face multi-decade in to fill the funding gap budgetary and market opportunities constraints 115
Slide 116: Compelling market themes and capital needs
Compelling market themes and capital needs will drive significant growth 116
Slide 117: Opportunities tied to carve outs for industrial businesses
Significant opportunities tied to carve outs for industrial businesses seeking sophisticated capital solutions Bio-Med Industrial Gas Aerospace & Defense $100B $100B $25B Independent Targeted infrastructure Downside risk Expansion management exposure protection potential Sources: CapIQ Outlook; Inte
Slide 118: Utilities seeking to partner with operational investors
Capex requirements will result in utilities seeking to partner with experienced operational investors Estimated Annual Grid Capital Expenditures ($B) 92 88 88 82 79 80 78 75 75 72 71 69 2021 2022 2023E 2024E 2025E 2026E Europe U.S. Source: “Pan Euro Utilities: Charge forward deep dive: grid investme
Slide 119: AI is primed to be the most impactful general-purpose technology
AI is primed to be the most impactful general-purpose technology in modern history $18T $8T Economic Productivity Investment Improvement Potential Requirement Future Existing • Compute Infrastructure ($4T) Investment • Chip Design & Manufacturing ($1T) • Dedicated Power Solutions ($0.5T) Areas • Dat
Slide 120: Key takeaways
Key takeaways Brookfield is one of the largest infrastructure investors globally, with a diverse range of products and a strong growth track record Tailwinds for infrastructure investments have never been stronger Market themes coupled with our unique capabilities will drive continued growth for Bro
Slide 121: Renewable Power & Transition
Renewable Power & Transition Natalie Adomait, Managing Partner, Renewable Power & Transition 121
Slide 122: The largest investment opportunity of the decade
The largest investment opportunity of the decade >2x 8 TW $5T Expected global New renewable Annual required electricity demand capacity needed investment in energy increase over the by 2030—tripling transition today, next 25 years current levels increasing to $8T by 2050 Sources: Global Energy Persp
Slide 123: Sector tailwinds support renewable power & transition
Sector tailwinds continue to support renewable power & transition Net zero aligned Electricity demand growth Renewable power legislation and from digitalization, data is the lowest-cost corporate targets center buildout and energy solution electrification 123
Slide 124: Decarbonization is a global goal
Decarbonization is a global goal Alignment of key stakeholders to address climate change is growing 2021 2024 145 countries, responsible for ~90% of global GHG emissions, Governments ~130 countries have adopted or are considering a net zero target ~345 banks have signed on to align financing portfol
Slide 125: Electricity demand growth led by global technology firms
Electricity demand growth is being led by the global technology firms to support digitalization Global Data Center Power Demand AI is driving a step change in data consumption Computing power and energy are 15x on the critical path for data Data center power demand is forecast to grow from ~2% of gl
Slide 126: Renewable power is the lowest-cost source of bulk power
Renewable power is the lowest-cost source of bulk power Alignment with net zero goals makes it the clear solution to growing electricity needs 100 Global LCOE1 US$ per MWh ~50% 60 Lower Cost 20 2015 2016 2017 2018 2019 2020 2021 2022 2023 Onshore wind Solar Coal Gas Source: Bloomberg New Energy Fina
Slide 127: Full-service platforms in all major markets
Full-service platforms in all major markets Key Sectors $100B North America 10,700 MW Europe & Total Business AUM Hydro $61B Middle East $17B 34 GW Asia Pacific 103,800 MW Solar Operating Capacity $6B South 62,400 MW 200 GW America $16B Wind Development Pipeline 57,600 MW Distributed Generation, Sto
Slide 128: Deep expertise through the value chain
Deep expertise through the value chain ~5,000 Operating Five Centralized Equipment Strong OEM Employees Control Centers Procurement Relationships Grid Optimization Develop, Build and Operate Engineering and Development ~800 Global Regulatory 140+ Power Construction Creditworthy Expertise Marketing E
Slide 129: Differentiated development capabilities
Differentiated development capabilities to meet growing demand while maintaining investment discipline Local platforms supported by central teams where we can add value No significant capital invested until a project is largely derisked Permitting and Construction and Commercial Interconnection Proc
Slide 130: Corporate-backed renewables
Corporate-backed renewables Framework to deliver over 10.5 GW of new renewable energy capacity between 2026 and 2030 in the U.S. and Europe Secures ~25% of our current pipeline Helping us to deploy $10+ billion of across our funds between 2026–30 capital into growth Structured to deliver at our Pote
Slide 131: Batteries
Batteries We are already one of the largest operators and developers globally ~$3 trillion market opportunity for battery storage between now and 2050 2+ GW 38 GW Costs have decreased 40% in past five years, driving attractive project Operating & Under Development economics and returns of 12–15%+ Co
Slide 132: Sustainable solutions
Sustainable solutions We invest in real assets, with contracted cash flows that require capital for scaling Almost $100 trillion market opportunity to decarbonize sectors that account for one- quarter of global GHG emissions Carbon Recycling Clean Energy Capture Manufacturing Strong fundamentals dri
Slide 133: We have launched four funds since 2021
We have launched four funds since 2021 Follow-on vehicles expected in each vertical to meet investor demand Flagship Transition Fund Series Brookfield Global Transition Fund I & II • Primary vehicle for investing in and facilitating the transition Business Transformation to net zero • Combined $25 b
Slide 134: Key takeaways
Key takeaways A $200+ trillion investment opportunity in decarbonization to meet net zero goals by 2050 Fundamentals for renewable energy and transition are driving accelerating demand We are the global leader in transition, with unsurpassed capabilities, relationships and access to scale capital So
Slide 135: Real Estate
Real Estate Brad Hyler, Managing Partner and Head of Europe Real Estate 135
Slide 136: High-quality assets positioned to weather market cycles
High-quality assets are well positioned to weather market cycles and deliver long term value 136 136
Slide 137: Where are we today?
Where are we today? Strong Stressed, Resilient fundamentals: undercapitalized macro Low supply owners backdrop High demand An extremely opportunistic point in time for real estate investing 137
Slide 138: Two years of volatility and uncertainty
The last two years have been a period of volatility and uncertainty… High Inflation Rising Interest Rates Capital Scarcity Muted Transaction Recessionary Fears Cap Rate Expansion Volumes 138
Slide 139: Markets are stabilizing
… but markets are stabilizing, and we’re already operating in the next phase of the cycle High Inflation Rising Interest Rates Capital Scarcity Rate Cuts Debt Markets Disinflation Opening Recessionary Fears Cap Rate Expansion Muted Transaction Volumes Transactions Resilient Economy Cap Rates Stabili
Slide 140: Current environment providing multiple investment outlets
The current environment is providing multiple outlets for attractive investment opportunities Debt Markets Private Funds Public Companies $2.8T $52B ~25% Upcoming Open-End Fund Discount to Maturities* Redemptions** NAV*** * U.S. and Europe 2024-27 maturities. Mortgage Bank Association (Nov-23) and M
Slide 141: We acquire, operate and sell through cycles
We acquire, operate and sell through cycles 141
Slide 142: U.S. Multifamily: a market shift creating a rare opportunity
U.S. Multifamily: A market shift is creating a rare investment opportunity 2020–22 Dispositions 2024 Acquired / Under Offer ~$10B ~$3.7B Disposals Acquired / Under Offer 3.7% 5.6% Exit Cap Rate* + ~200 bps Entry Cap Rate Forest City San Francisco Multifamily Portfolio * Buyer’s going in cap rate 142
Slide 143: Delivering strong opportunistic returns
Delivering strong opportunistic returns $44B 21% Equity Invested Gross IRR $37B Realized Proceeds 17% $37B Net IRR Unrealized Proceeds See Notice to Recipients and Endnotes, including endnotes 2, 15, 16, 17, 18 and 19. 143
Slide 144: How we drive value
How we drive value Scale Relationships Operating Expertise Brookfield Ecosystem $272B 30+ 29,000 1,300+ AUM Active markets with Operating Investment local presence employees professionals See Notice to Recipients and Endnotes, including endnotes 1 and 14. 144
Slide 145: Among the most active real estate investors
We have been among the most U.S. Multifamily Portfolio active real estate investors… $6.0B Acquisitions LTM* North American Logistics Portfolio ~100 Transactions LTM * At Brookfield ownership 145
Slide 146: Continue to sell high-quality assets through the cycle
ICD Brookfield Place …and continue to sell high-quality assets through the cycle $3.7B Disposals LTM* 150 Champs Élysées ~100 Transactions LTM * At Brookfield ownership 146
Slide 147: Investment strategy underpinned by thematic market tailwinds
Our investment strategy is underpinned by long term, thematic market tailwinds 147 147
Slide 148: Demographics
Demographics Following major generational groups through their key milestones Gen Z Millennials Baby Boomers Livensa Living US Single Family Rental Portfolio Leela Palaces, Hotels & Resorts • Student Accommodation • Multifamily / Single Family • Senior Living • Co-Living • Manufactured Housing • R&D
Slide 149: Digitalization & Decarbonization
Digitalization & Decarbonization Rapidly transforming the logistics & hospitality industry Selenta Hospitality Group Pan-European Logistics Portfolio E-commerce / Contactless Real Time Renewable Energy Brown to Mobile Technology Data Energy Efficient Green Penetration Decisions Assets Digitalization
Slide 150: Deglobalization
Deglobalization Bringing manufacturing closer to home Logistics Warehousing Onshoring Decentralized Networks Supply Chains North American Logistics Portfolio Science & Innovation Proximity to Expansion of Government Production Innovation Hubs Support U.K. Science and Innovation 150
Slide 151: Our business is well positioned for growth
Our business is well positioned for growth 151 151
Slide 152: Our real estate business continues to grow
Our real estate business continues to grow Scaling Flagship Offering Providing Bespoke Funds Complementary Client Solutions Products $9.0B $3.4B $3.6B Raised Raised Raised BSREP V Brookfield Real Separately Managed Estate Solutions Accounts & Co-Investments* * Raised 2022–24 152
Slide 153: Exceptional backdrop for real estate investing
We believe the current environment offers an exceptional backdrop for real estate investing 153
Slide 154: Private Equity
Private Equity Anuj Ranjan, Chief Executive Officer, Private Equity 154
Slide 155: Best-in-class asset manager with outstanding track record
Brookfield Private Equity is a best-in-class asset manager with an outstanding long term track record 155
Slide 156: 25-year track record of exceptional returns
25-year track record of generating exceptional returns $44B $38B Total Equity Invested Realized Proceeds 27% 21% Gross IRR Net IRR See Notice to Recipients and Endnotes, including endnotes 2, 16 and 17. 156
Slide 157: Private equity continues to be an attractive asset class
Private equity continues to be an attractive asset class 157
Slide 158: Long term outperformance relative to public markets
Long term outperformance relative to public markets Private Equity vs. Public Market Returns 18% 17% 15% 14% 11% 12% 10% 10% 20-year 15-year 10-year 5-year S&P 500 Pitchbook North American Private Equity Index Source: FS Investments | Private equity has historically outperformed public markets (June
Slide 159: Historical performance driven by increasing multiples
Historical performance driven largely by increasing multiples PE Industry Value Creation Breakdown Margin Revenue Expansion Multiple Growth Expansion Enterprise Enterprise Value at Entry Value at Exit Multiple expansion is historically the biggest return generator for the industry, but margin expans
Slide 160: Future performance determined by margins and free cash flow
Future performance will be determined by the industry’s ability to improve margins and enhance free cash flow 160
Slide 161: Value investors focused on operational transformation
We are value investors focused on operational transformation 161
Slide 162: Executing on an established operations playbook
Executing on an established operations playbook Operational Commercial Strategic Digitalization Excellence Execution Positioning 50% of value creation through operational improvements 162
Slide 163: Targeting high-quality businesses
Targeting high-quality businesses Essential products Market leaders High barriers and services to entry Strong returns Durable competitive on capital advantages 163
Slide 164: Interconnected global business provides unparalleled insights
Our interconnected global business provides unparalleled insights 30+ Hospitality Logistics & Self-Storage Energy Transition Countries Housing Mixed Use, Retail & Entertainment Solar 300+ Business Services Utilities Portfolio companies Infrastructure Services ~$1 trillion Office AUM Transport Hydro
Slide 165: Identifying opportunities with limited competition
Identifying investment opportunities with limited competition Take a contrarian Seek out complex Position Brookfield Leverage flexibility to approach situations as a partner of invest across the choice capital structure 165
Slide 166: Investment spotlight: Clarios
Investment spotlight: Clarios Leading global manufacturer of advanced automotive battery technologies Adjusted EBITDA Complex corporate carve-out ($B) ~$2.0 Market leader with stable cash flows $1.6 Value creation through $400M operational turnaround Value creation Strong industry tailwinds 2018 202
Slide 167: Platform has reached an inflection point
The platform we have built over two decades has reached an inflection point and is now poised to scale for pivotal growth 167
Slide 168: Our private equity platform
Our private equity platform Key Sectors North America Europe & Industrials $131B $62B Middle East Total Business AUM $29B Business Asia Pacific Services 190 $30B Investment professionals South America Infrastructure $10B Services See Notice to Recipients and Endnotes, including endnotes 1 and 14. 16
Slide 169: Established capabilities and experience
Established capabilities and experience Global sourcing Experienced team with Proven investment engine local operating expertise strategy 169
Slide 170: Raising capital around new investment strategies
Platform to raise significant capital around new investment strategies Structured Financial Niche investments fund infrastructure fund regional fund 170
Slide 171: Exceptional long term track record supports growth
Exceptional long term track record and established capability to support growth in fee-bearing capital and fee-related earnings 171
Slide 172: Growth in Private Credit
Growth in Private Credit Moderated by Craig Noble, Chief Executive Officer, Credit 172 172
Slide 173: Wrap Up
Wrap Up Significant tailwinds Record of generating Partnership approach to Building new Brookfield Ecosystem should persist for the long term, attractive deepen relationships products and buying provides significant next 10+ years risk-adjusted returns with clients more capabilities advantages Shoul
Slide 174: Q&A
Q&A 174
Slide 175: Thank You
Thank You
Slide 176: Endnotes
ENDNOTES All data presented is as of June 30, 2024 unless otherwise noted. Totals may manage their investment activities independently of the rest of distributions and redemptions of capital from within liquid strategies; not add due to rounding. Brookfield. Brookfield’s methodology for determining
Slide 177: Endnotes (continued)
ENDNOTES (continued) working at Brookfield’s (and/or its applicable sectors’) related material factors that could cause actual results to differ materially will 10. After the separation of the Manager in 2022, Brookfield Corporation operating businesses and portfolio companies. Management fees be pr
Slide 178: Investor Day 2024 – Notice to Recipients
INVESTOR DAY 2024 – NOTICE TO RECIPIENTS Brookfield Asset Management is not making any offer or invitation of any the forward-looking statements contained in this presentation include rate; and (iii) total listed partnership capitalization includes issuances related kind by communication of this pre
Slide 179: Notice to Recipients (continued)
INVESTOR DAY 2024 – NOTICE TO RECIPIENTS (continued) Although Brookfield Asset Management believes that such forward-looking We caution that the foregoing list of important factors that may affect future STATEMENT REGARDING USE OF NON-IFRS MEASURES statements are based upon reasonable estimates, bel
Slide 180: Hosted Lunch Tables
TABLE 1 TABLE 2 TABLE 3 Natalie Adomait Ben Brown Jaspreet Dehl Managing Partner Head of Americas Region Managing Partner & CFO Renewable Power & Transition Brookfield Real Estate Private Equity Jon Bayer Thomas Corbett Nailah Flake Head of M&A Managing Partner Managing Partner Brookfield Wealth Sol
Slide 181: Hosted Lunch Tables
TABLE 7 TABLE 8 TABLE 9 TABLE 10 David Krant Lorenzo Lorilla Cyrus Madon Sam Pollock Managing Partner Chief Investment Officer Managing Partner Managing Partner Infrastructure Brookfield Wealth Private Equity Infrastructure Solutions David Levi Kevin McCrain Craig Noble Chief Executive Officer Renee