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About Brookfield Asset Management Inc

Brookfield Asset Management sees the money flowing in from a wide variety of sources. The company has over $540 billion in assets under management, including real estate, renewable power, infrastructure, and private equity. It owns a global portfolio of commercial, retail, residential, and development properties. Brookfield is also one of the world's largest investors in renewable power, owning more than 5,200 power-generating facilities including wind and solar plants with a total of approximately 20,000 megawatts of generating capacity. The company's private equity business invests in high-quality companies with high barriers to entry. Most of the company's revenue were generated from the UK with more than 30% of sales.

Operations

Brookfield Asset Management has seven core business segments: Private Equity, Real Estate, Infrastructure, Renewable Power, Residential Development, Asset Management, and Corporate Activities.

The Private Equity segment invests in a broad range of industries, with a focus on business services, infrastructure services, and industrial operations. It accounts for around 65% of total revenue.

The Real Estate segment develops, owns, and operates the group's retail, office, core retail, LP investments and other properties. Its holdings include 450 million sq. ft. of space around the world. The segment brings in some 15% of total revenue.

The Infrastructure segment develops, owns, and operates the group's infrastructure assets including utility, transport, energy, data infrastructure, and sustainable resource holdings. It accounts for some10% of revenue.

Renewable Power assets include wind, solar, water, storage, and other power-generation facilities in the Americas, and Europe. It brings in more than 5% of revenue.

Residential Development is engaged in land, condominium, and home development in North America and Brazil. It also accounts for less than 5% of revenue.

The Corporate Activities segment manages investment of cash and financial assets, as well as the management of corporate leverage, including corporate borrowings and preferred equity.

The Asset Management operations include managing listed partnerships, private funds and public securities on behalf of the company's investors, as well as share of the asset management activities of Oaktree.

Overall, revenues from contracts with customers accounted more than 85% of the company's total sales, while other revenues account for the rest.

Geographic Reach

Toronto-based Brookfield Asset Management has a wide variety of holdings around the world, with operations in the Asia/Pacific region, Europe, the Middle East, North America, and South America. More than 30% of its revenue comes from its business in the UK. Its next-largest markets are the US (some 25% of revenue), Canada and Europe, (about 10%, each), Australia (about 10%), Brazil (more than 5%), Asia (less than 5%), and Columbia (less than 5%).

Sales and Marketing

Brookfield Asset Management's investors include sovereign wealth funds and other institutional investors and individuals.

Financial Performance

Brookfield Asset Management has seen substantial revenue growth in recent years. Its annual revenue has risen more than 240% since 2015. Net income has also seen growth over the same period, though not as much, rising by 20% between 2015 and 2019.

Revenue increased to $67.8 billion in 2019, an approximately 19% increase from the year prior. The increase was driven by acquisitions of new businesses and assets and same-store growth across businesses, partially offset by lower revenue from its road fuel distribution business and the absence of $2 billion of revenues from businesses sold in the current and prior year.

Net income was $2.8 billion in 2019, a decrease of $777 million from $3.6 billion the year prior. This was due to an increase in interest expense by $2.4 billion, fair value losses of $831 million compared to gains of $1.8 billion in the prior year, depreciation and amortization expense by $1.8 billion, and a tax expense of $495 million compared to an income tax recovery of $248 million in the prior year.

Cash provided by operating activities was $6.3 billion in 2019, while investing activities used $36.7 billion, mainly for acquisitions. Financing activities provided another $28.7 billion. The company ended fiscal 2019 with $6.8 billion in cash and cash equivalents.

Strategy

Brookfield Asset Management raises private and public capital from the world's largest institutional investors, sovereign wealth funds and individuals, with a focus on generating attractive investment returns that will allow its investors and their stakeholders to meet their goals and protect their financial future. It operates in more than 30 countries and has more than $540 billion in assets under management.

The group is always on the lookout for acquisition opportunities and other ways to invest in out-of-favor, promising markets with high barriers to entry, as well as opportunities to sell assets to raise more capital. Among the larger purchases by Brookfield and its affiliates in 2019 were a majority stake in US-based alternative investment manager Oaktree Capital for around $4.8 billion, private Australian hospital operator Healthscope for about $4.1 billion, and leading Brazilian heavy equipment and light vehicle fleet management company Ouro Verde.

Brookfield aims to invest in assets that address such environmental and social priorities as climate change and the workplace. For example, in 2019, it reduced its Scope 1 and 2 emissions by 20%, and its global gross carbon intensity continues to be one of the lowest among comparable power companies. Brookfield Renewable's portfolio of green energy generation also helped to avoid approximately 27 million metric tons of carbon dioxide equivalent emissions on a net basis.

Mergers and Acquisitions

In 2019, Brookfield Asset Management partnered with New Zealand-based infrastructure investor Infratil to purchase the New Zealand business of British multinational telecommunications conglomerate Vodafone Group for about $2.2 billion. An affiliate of Brookfield Asset Management agreed to buy railroad company Genesee & Wyoming for about $6.3 billion in 2019, expanding its worldwide portfolio of rail companies.

Brookfield also agreed to acquire four hotels in India from Hotel Leela Venture in 2019 for about $575 million. The hotels are in Bengaluru, Chennai, Delhi, and Udaipur.

In 2019, Brookfield Asset Management agreed to acquire a majority stake in US-based alternative investment manager Oaktree Capital for around $4.8 billion. The deal aids Brookfield in its push to rival Blackstone in size. That same year, Brookfield Business Partners, the publicly traded business services and industrials company of Brookfield Asset Management, agreed to acquire Healthscope in 2019 for about $4.1 billion. The company is the second-largest private hospital operator in Australia and the largest pathology services provider in New Zealand.

Company Background

Brookfield Asset Management was established in 1899 as the São Paulo Railway, Light and Power Company. In the 1950s the company began investing in real assets, and in the 1990s it scooped up major commercial properties in New York and Boston. It also invested in renewable energy holdings. The group established its first third-party fund in 2001, launching its asset management operations. 

In 2017 Brookfield Renewable Partners partnered with other investors to acquire 51% of TerraForm Power, a portfolio of solar and wind power assets, for a total commitment of $656 million. Later that year, the investors acquired all of TerraForm Global, another renewable power portfolio with assets in Brazil, China, and India, for a total of $750 million. Also in 2017, the company acquired a portfolio of manufactured housing communities in the US for $768 million.

Brookfield Asset Management Inc

181 Bay St Suite 300
TORONTO, ON M5J 2T3
Phone: 1 (416) 363-9491

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: BAM
Stock Exchange: , NYSE
Vice Chair: Barry Blattman
Vice Chair: Jeffrey M. Blidner
Chair, Brookfield Asset Management Inc. and Deputy Chair, TD Bank Group: Frank J. McKenna
Employees (This Location): 200
Employees (All Locations): 151,000

Major Office Locations

TORONTO, ON

Other Locations

Chandler, AZ
Phoenix, AZ
Scottsdale, AZ
Aliso Viejo, CA
Corona, CA
Costa Mesa, CA
Los Angeles, CA
Oceanside, CA
Sacramento, CA
San Diego, CA
San Jose, CA
San Ramon, CA
Valencia, CA
Aurora, CO
Denver, CO
Littleton, CO
Parker, CO
Westminster, CO
Washington, DC
Coconut Creek, FL
Fort Lauderdale, FL
Plantation, FL
Atlanta, GA
Duluth, GA
Valdosta, GA
Koloa, HI
Chicago, IL
Avon, IN
Indianapolis, IN
Boston, MA
Baltimore, MD
Beltsville, MD
Bethesda, MD
Columbia, MD
Easton, MD
Rockville, MD
Silver Spring, MD
Ann Arbor, MI
Battle Creek, MI
Clinton Township, MI
Detroit, MI
Fenton, MI
Holland, MI
Kalamazoo, MI
Mount Pleasant, MI
Rochester Hills, MI
Minneapolis, MN
Jersey City, NJ
Fulton, NY
New York, NY
Watertown, NY
Aurora, OH
Avon, OH
Brooklyn Heights, OH
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dublin, OH
Gahanna, OH
Grove City, OH
Medina, OH
Parma, OH
Pickerington, OH
Reynoldsburg, OH
Streetsboro, OH
Westerville, OH
Westlake, OH
Hillsboro, OR
Columbia, TN
Lawrenceburg, TN
Houston, TX
Willis, TX
Arlington, VA
Chester, VA
Fairfax, VA
Fredericksburg, VA
Herndon, VA
Reston, VA
Stephenson, VA
Woodbridge, VA
Kenmore, WA
Clarksburg, WV
Ashcroft, Canada
Astra, Canada
Boucherville, Canada
Calgary, Canada
Comber, Canada
Côte Saint-Luc, Canada
Denwood, Canada
Edmonton, Canada
Etobicoke, Canada
Greenwood, Canada
Hudson, Canada
Ingersoll, Canada
Manotick, Canada
Markham, Canada
Mississauga, Canada
Montréal, Canada
North York, Canada
Oakville, Canada
Orleans, Canada
Petawawa, Canada
Powell River, Canada
Red Deer, Canada
Richmond Hill, Canada
Rockland, Canada
Rosemère, Canada
Saint-Jean-Sur-Richelieu, Canada
Saint-Lazare, Canada
Sarnia, Canada
Sault Ste. Marie, Canada
Scarborough, Canada
Thessalon, Canada
Toronto, Canada
Trenton, Canada
Vancouver, Canada
Victoria, Canada
Victoriaville, Canada
West Vancouver, Canada
Winnipeg, Canada

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