1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. Brookfield Asset Management Inc.
  6. News
  7. Summary
    BAM.A   CA1125851040

BROOKFIELD ASSET MANAGEMENT INC.

(BAM.A)
  Report
Delayed Toronto Stock Exchange  -  04:15 2022-06-24 pm EDT
58.87 CAD   +2.15%
06/24Brookfield Asset Management Exploring Bid for InterGen UK Power Portfolio
MT
06/23Brookfield Announces Results of Conversion of its Series 28 Preferred Shares
GL
06/23Brookfield Announces Results of Conversion of its Series 28 Preferred Shares
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

DBRS Morningstar Comments on Brookfield Asset Management Inc's Proposal to Distribute 25% of its Asset Management Business to Shareholders

05/17/2022 | 05:00am EDT

DBRS Limited (DBRS Morningstar) notes that Brookfield Asset Management Inc. (BAM or the Company; rated A (low) with a Stable trend by DBRS Morningstar) announced that its asset management business (AMB) will be listed and 25% of the AMB (the Restructuring) will be distributed to shareholders.

BAM is a leading global alternative asset manager, with total assets under management (AUM) of approximately $720 billion and fee-bearing capital of approximately $379 billion. DBRS Morningstar notes that there will be no cash transactions and no incremental debt to be issued by BAM in connection with the Restructuring, which is expected to be completed by the end of 2022. The Restructuring will largely involve the following:

Fee-related earnings, which include base management fee, incentive distribution, and transaction and advisory fees, as well as performance fees.

Carried interest, which includes realized carried interest and unrealized carry interest.

All other segments: Real Estate, Renewable, Infrastructure, Private Equity, Residential Development and Corporate will not be part of the Restructuring.

According to DBRS Morningstar's analysis, with a reduction of 25% in the FFO from the AMB, the Restructuring is expected to have a modestly negative impact on BAM's credit metrics such as the FFO-to-debt and cash flow-to-debt ratios. However, DBRS Morningstar views the impact as manageable because BAM's credit metrics are currently strong for the ratings. Moreover, the metrics will remain supported by growing fee-bearing capital and the incremental FFO from Real Estate as a result of last year's acquisition of the 38% interest in Brookfield Property Partners LP that BAM did not already own. From a business risk profile perspective, the Restructuring is expected to only have a modestly negative impact on BAM's risk profile as the relative importance of the asset management business, which is viewed as being of higher credit quality relative to BAM's other business pillars, will decline somewhat. However, DBRS Morningstar notes that the other major business pillars (such as Real Estate, Renewable, Infrastructure, and Private Equity) continue to benefit from sound fundamentals, providing superior business diversification to BAM. Furthermore, the reduction in the AMB FFO only partially offset the significant increases in AUM and fee-bearing capital in recent years.

DBRS Morningstar believes if the Restructuring is implemented as currently planned, there will be no rating impact on BAM and its guaranteed subsidiaries. However, DBRS Morningstar could take a negative rating action if (1) the Company's credit metrics weaken materially from the level as required by DBRS Morningstar on a sustained basis; or (2) its business risk profile post Restructuring deteriorates significantly. DBRS Morningstar currently considers these scenarios unlikely.

Please see DBRS Morningstar's Brookfield Asset Management Inc. Rating Report dated July 19, 2021, for further references.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

Notes:

All figures are in U.S. dollars unless otherwise noted.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

(C) 2022 Electronic News Publishing, source ENP Newswire

Stocks mentioned in the article
ChangeLast1st jan.
BROOKFIELD ASSET MANAGEMENT INC. 2.15% 58.87 Delayed Quote.-24.56%
All news about BROOKFIELD ASSET MANAGEMENT INC.
06/24Brookfield Asset Management Exploring Bid for InterGen UK Power Portfolio
MT
06/23Brookfield Announces Results of Conversion of its Series 28 Preferred Shares
GL
06/23Brookfield Announces Results of Conversion of its Series 28 Preferred Shares
AQ
06/22GIC Reportedly Pulls Out of Bid for $2 Billion Tower Complex
CI
06/22Bidders weigh offers valuing Toshiba at up to $22 bln -sources
RE
06/22Brazil's antitrust body approves Brookfield purchase of Localiza, Unidas assets
RE
06/22Brookfield Asset Management Raises $15 Billion for First Transition Fund
MT
06/22Bidders weigh offers valuing Toshiba at up to $22 bln-sources
RE
06/22EU OKs Acquisition of Jindal Plastic Firm Business by Brookfield, BC Jindal
MT
06/22Bidders weigh offers valuing Toshiba at up to $22 bln-sources
RE
More news
Analyst Recommendations on BROOKFIELD ASSET MANAGEMENT INC.
More recommendations
Financials (USD)
Sales 2022 83 493 M - -
Net income 2022 - - -
Net Debt 2022 142 B - -
P/E ratio 2022 14,2x
Yield 2022 1,23%
Capitalization 71 527 M 71 527 M -
EV / Sales 2022 2,55x
EV / Sales 2023 2,47x
Nbr of Employees 180 000
Free-Float 80,1%
Chart BROOKFIELD ASSET MANAGEMENT INC.
Duration : Period :
Brookfield Asset Management Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BROOKFIELD ASSET MANAGEMENT INC.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 12
Last Close Price 45,58 $
Average target price 61,71 $
Spread / Average Target 35,4%
EPS Revisions
Managers and Directors
James Bruce Flatt Chief Executive Officer & Director
Nicholas Goodman Chief Financial Officer & Senior Managing Partner
Frank J. McKenna Chairman
Dominic Dodds Managing Director-Technology
Lori A. Pearson Chief Operating Officer & Senior Managing Partner
Sector and Competitors