Brookfield Asset Management Inc · NYSE:BAM
Brookfield Asset Management — Q4 2023 Earnings Presentation
36 slides from Brookfield Asset Management's earnings presentation, February 2024
Slide 1: Brookfield Asset Management Investor Presentation
Brookfield Asset Management IN V E S T OR P R E S E N TAT ION F E B RUA RY 2 0 2 4
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 $65B
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 $457B Fee-Bearing Capital Renewable Power Infrastructure Private Equity Real Estate Credit & Other & Transition $54B $100B $39B $101B $163B See Notice to
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 ~240,000 ~2,300 2,300+ 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 Their Growing Capital Base 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 Yields 1 Target 3 Public 2 Target Real 3 Private Equity Assets and Credit Returns Private Equity 1. As of Dec
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 $25 trillion by 2028 Institutional Allocation to Alternatives AUM 2 Alternative Assets Is Growing 1 ($ in
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: Brookfield is 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: Brookfield Has Strong Portfolio and Earnings Growth…
Brookfield Has Strong Portfolio and Earnings Growth… With almost $100 billion of capital inflows over the past year, in addition to our acquisition of AEL expecting to close in early 2024, we are on track to hit our target of ~$1T of fee-bearing capital in five years Fee-Bearing Capital Fee-Related
Slide 13: …With Increased Realized Carry Potential in the Future
…With Increased Realized Carry Potential in the Future As our carry-eligible capital continues to grow, carried interest will become a significant contributor in the future Total Brookfield Carry-Eligible Capital Gross Carried Interest ($ 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% 22% 22% Net IRR 9% 12% 21% 18% 16% AUM $
Slide 18: …with an 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 95% of our fee revenues and creating a stable and predictable earnings base. Fee-Bearing Capital and Fee Revenue Composition 14% 5% 10% 8% $457B $1.1B Q4-23 54% 24% Q4-23 FBC Fee Revenue 61% 24% ■ L
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 $47B $17 Uncalled fund commitments $22 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: Fourth Quarter and Full Year 2023 Financial Performance
Fourth Quarter and Full Year 2023 Financial Performance Fee-Related Earnings (FRE) of $2.2 billion ($1.37 / share) for the year, up 6% from the prior year period • FRE of $581 million ($0.36 / share) for the fourth quarter Distributable Earnings (DE) of $2.2 billion ($1.37 / share) for the year, up
Slide 24: A Range of Alternative Investment Strategies
A Range of Alternative Investment Strategies Brookfield’s private fund strategies across debt and equities offer investors multiple access points along the risk/return spectrum Illustrative Risk/Return Profile Debt Strategies Equity Strategies Mezzanine Core Core Plus Value Add Opportunistic Private
Slide 25: Renewable Power and Transition – Overview
Renewable Power and Transition – Overview Brookfield is one of the most impactful renewable power and decarbonization investors, owners and operators $102B $54B 90 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Renewable Power and Transition business
Slide 26: Infrastructure – Overview
Infrastructure – Overview Brookfield is one of the world’s largest infrastructure investors, owners and operators $191B $100B 140 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Infrastructure business is ideally positioned at the epicenter of the glob
Slide 27: Private Equity – Overview
Private Equity – Overview Brookfield is one of the most experienced private equity investors $130B $39B 180 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 produc
Slide 28: Real Estate – Overview
Real Estate – Overview Brookfield is one of the largest real estate investors with a diversified portfolio in the world’s most well-established markets $276B $101B 320 Assets Under Management Fee-Bearing Capital Investment Professionals Overview Asset Types • Our Real Estate business seeks to build
Slide 29: Credit and Other – Overview
Credit and Other – Overview Brookfield’s partnership with Oaktree has established it as one the largest and fastest-growing alternative credit managers $217B $163B 460 Assets Under Management Fee-Bearing Capital Investment Professionals 13 Overview Asset Types • Our Credit business offers clients ac
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 ("AU M") ref ers to the total f air equity -based compensation costs. disclosed herein is deriv ed f rom Brookf ield’s observ ations v alue of assets managed, calculated as follows: inv estments 5. Fee-related earni ngs is comprised of f ee rev enues less and its p
Slide 32: Notice to Readers
Notice to Readers Brookf ield Asset Management Ltd. is not making any off er or Although Brookf ield Asset Management Ltd. believ es that such documents f iled with the securities regulators in Canada inv itation of any kind by communication of this Inv estor f orward-looking statements are based up
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 Recognition 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 2020
Slide 35: Awards and Recognition (cont’d)
Awards and Recognition (cont’d) 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 Hot
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, Tow er B, One East 250 Vesey Street , 15th Floor 181 Bay Street, Suite 300 Canary Wharf 10 Carrington Street No. 736
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