About Brookfield Asset Management Inc
Brookfield Asset Management sees the money flowing in from a wide variety of sources. The company has over $350 billion in assets under management, including real estate, power-generation interests, and infrastructure holdings. 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 some 300 power-generating facilities including wind and solar plants with a total of some 18,000 megawatts of generating capacity. The company's private equity business invests in high-quality companies with high barriers to entry.
Brookfield Asset Management has seven core business segments: Asset Management, Real Estate, Infrastructure, Renewable Power, Private Equity, Residential Development, 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 some 60% of total revenue.
The Real Estate segment develops, owns, and operates the group's retail, office, and other properties. Its holdings include 450 million sq. ft. of space around the world, including London's Canary Wharf financial district (which it co-owns with Qatar's sovereign wealth fund). The segment brings in some 20% 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 about 10% of revenue.
Renewable Power assets include wind, solar, water, storage, and other power-generation facilities in the Americas, Europe, India, and China. It brings in some 5% of revenue.
Residential Development is engaged in land, condominium, and home development in North America and Brazil. It also accounts for some 5% of revenue.
The Corporate Activities segment manages the group's cash and financial asset investments.
The Asset Management segment is a global manager with some $138 billion of fee-bearing capital across private funds, listed partnerships, and public securities.
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. About 40% of its revenue comes from its business in the UK. Its next-largest markets are the US (some 20% of revenue), Canada (about 15%), Australia (about 10%), and Brazil (nearly 10%).
Sales and Marketing
Brookfield Asset Management's investors include sovereign wealth funds and other institutional investors and individuals.
Brookfield Asset Management's revenues and profits have been trending higher over the past few years as it's acquired more property assets, and as property and portfolio-company valuations have risen in the strengthened economy. Net income has been more volatile, rising and falling as the company spends money integrating newly acquired businesses or constructing commercial properties.
In 2017, revenue increased an impressive 67% to $40.8 billion. This was driven by the acquisitions of new businesses and assets. Its private equity investment in a UK road fuel distribution business alone contributed more than $13 billion that year. Revenue from existing holdings also increased.
Net income fell 13% to $1.3 billion in 2017, primarily due to higher costs related to acquisitions as well as unexpectedly high construction costs.
The company ended 2017 with $5.1 billion in net cash, 20% more than it had at the end of 2016. Operating activities provided $4 billion in cash and financing activities provided $8.2 billion, while investing activities used $11.4 billion.
Brookfield Asset Management uses its size, geographic reach, and expertise in alternative and traditional products to generate the most return on its investments. It operates in more than 30 countries and has more than $350 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. In 2018 it acquired Westinghouse Electric Company for $3.8 billion. It also purchased the rest of mall owner GGP it didn't already own for $13.2 billion. In another major purchase, it acquired Enercare for $2.4 billion. Assets acquired during 2017 included a portfolio of manufacturing housing communities ($768 million), a 90% stake -- shared with an investment partner -- in Brazilian natural gas transmission firm NTS ($5.3 billion), and a portfolio of UK student housing properties (£299 million). On the other side of the ledger, it sold a stake in GrafTech in 2018, with a net gain of $209 million. It also sold its stake in Chilean electricity transmission firm Transelec for a net gain of $244 million. In 2017, it sold its stake in 245 Park Avenue in New York City, with a net gain totaling some $469 million
The firm is also working to take advantage of the global shift towards privatization of infrastructure; it expects to see most of the world's infrastructure holdings in private hands within four decades. By rough estimate, the potential investment opportunity in that sector could reach as high as $100 trillion.
Brookfield aims to invest in assets that address such environmental and social priorities as climate change and the workplace. For example, 90% of its core office portfolio has achieved green certification, and its renewable energy holdings replace some 25 million tons of emissions annually.
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.
In 2019 Vodafone agreed to sell its New Zealand business for about $2.2 billion to New Zealand-based infrastructure investor Infratil and Canadian alternative asset management firm Brookfield Asset Management in an effort to reduce its debt.
Brookfield 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.
In 2018, Brookfield subsidiary Brookfield Property Partners acquired the 66% of mall owner GGP it didn't already own. It created Brookfield Property REIT, a new publicly listed company to hold GGP's assets.
Also that year, Brookfield Business Partners acquired nuclear power specialist Westinghouse Electric Company, which had entered chapter 11 bankruptcy protection the prior year.
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 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.
181 Bay St Suite 300
TORONTO, ON M5J 2T3
Phone: 1 (416) 363-9491
Employer Type: Publicly Owned
Stock Symbol: BAM
Stock Exchange: , NYSE
Vice Chair: Jeffrey M. Blidner
Managing Partner and CFO: Brian D. Lawson
Chair, Brookfield Asset Management Inc. and Deputy Chair, TD Bank Group: Frank J. McKenna
Employees (This Location): 200
Employees (All Locations): 100,750
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