Brookfield Asset Management Inc.NYSE
Brookfield Asset Management Offers Well-Diversified Growth Leveraging Third-Party Capital
Stephen Simpson, CFA • 13 Comments
Stephen Simpson, CFA • 13 Comments
Brookfield Asset Management's Fee Growth Bodes Well For The Future
Stephen Simpson, CFA
Stephen Simpson, CFA
Mon, Oct. 17, 5:33 PM
- Brookfield Asset Management (NYSE:BAM) is considering an IPO of natural gas producer Ember Resources next year, likely seeking a valuation of more than C$1B ($762M), Bloomberg reports
- The companies are considering the IPO as some signs of life return to the embattled energy sector; for example, Extraction Oil & Gas shares have climbed more than 13% since making its trading debut last week.
- Ember’s core assets are in Alberta’s Horseshoe Canyon coalbed methane fairway, with 2.2M net acres of land inventory, and the company’s production is ~300M cf/day of natural gas extracted from coal; BAM led a group in acquiring Ember in 2011 for ~C$106M.
Fri, Sep. 30, 3:10 PM
- Brookfield Asset Management (BAM +0.3%), which had teamed with Appaloosa Management to bid for TerraForm Power (TERP -0.2%), is not planning to participate in an auction for the company due to concerns about the process, Bloomberg reports.
- BAM is said to be concerned about rules that would require it to relinquish voting rights and give up the ability to trade its TERP shares if it takes part in the auction.
- The auction process reportedly also does not give BAM the right as a large shareholder to match or beat bids made for the company; BAM remains interested in acquiring TERP and would not tender its shares if the company is sold to another bidder, according to the report.
Fri, Sep. 23, 7:10 AM
- The purchasing consortium is made up of Brookfield Infrastructure (NYSE:BIP) and institutional clients of Brookfield Asset Management (NYSE:BAM).
- As reported earlier this month, the $5.2B deal is for 90% of Petrobas' (NYSE:PBR) Nova Transportadora do Sudeste S.A., a system of natural gas transmission assets in Southeast Brazil.
- BIP's investment will be a minimum of 20% of the deal value.
- Closing is targeted before year-end.
Thu, Sep. 22, 11:49 AM
- "Brookfield Asset Management's (BAM +5.1%) competitive advantages include global reach, size/scale, strong investment track records, and multiple funds/strategies,” says analyst Neil Downey, upgrading to Top Pick from Outperform.
- The company has grown and diversified its client base, which now includes 425 global private fund investors vs. 320 a year ago, and fee-bearing capital of $108B is up 15% from a year ago. Downey, however, expects that to slow in the next 12-24 months before reaccelerating in 2019 and 2020.
- By Downey's estimate, BAM has intrinsic value of $38 per share, and he has a $41 price target.
- Previously: Brookfield Asset made a Top Pick at RBC (Sept. 22)
Thu, Sep. 22, 7:31 AM
Wed, Sep. 21, 4:37 PM
- Shares of TerraForm Power (NASDAQ:TERP) spiked into the close for a 4.4% gain following a Bloomberg report that BlackRock (NYSE:BLK) has joined a list of potential buyers for the company.
- BLK, which owned 5.3% of TERP’s class A shares as of June 30, would be joining several investors including Brookfield Asset Management (NYSE:BAM), Appaloosa Management and China's Golden Concord Holdings as possible bidders, according to the report.
- “If investors believe TerraForm can transition to a competently managed company freed of its ties to SunEdison, it would be a natural institutional target amidst the global search for yield,” a Bloomberg analyst says.
- TERP and fellow SunEdison (OTCPK:SUNEQ) yieldco TerraForm Global (NASDAQ:GLBL) said earlier this week that they were seeking to sell their entire businesses or operate independently.
Thu, Sep. 8, 9:59 AM
- Petrobras (PBR +2.4%) says it concluded negotiations to sell natural gas pipeline unit Nova Transportadora do Sudeste to a group of investors led by Brookfield Asset Management (BAM -0.2%).
- PBR, which did not unveil the value of the sale, says the terms will be presented to its board and disclosed publicly after the board’s approval.
- Previous reports have indicated that the value of the deal could reach $5.2B.
Mon, Aug. 29, 6:54 AM
Mon, Aug. 29, 1:57 AM
- D.E. Shaw & Co is weighing a bid for SunEdison's (OTCPK:SUNEQ) controlling stake in TerraForm Power (NASDAQ:TERP), the bankrupt renewable energy producer's most valuable asset, Reuters reports.
- The hedge fund and its affiliates already own some TERP common shares after receiving them in an agreement announced last year upon forgiving debt owed by SunEdison.
- Appaloosa Management and Brookfield Asset Management (NYSE:BAM) have separately announced plans to jointly bid on the so-called "Class B" shares of TerraForm Power.
Thu, Aug. 25, 1:15 PM
- China's Golden Concord Holdings is seeking to acquire assets including U.S. solar farms from bankrupt SunEdison (SUNE) and is planning to bid for SUNE's controlling stake in TerraForm Power (TERP +1.1%), Bloomberg reports.
- A move by China's largest non-state owned solar company would pit it against a planned joint bid from Brookfield Asset Management (BAM -0.8%) and Appaloosa Management.
- While SUNE has not yet made a motion to sell the stake in bankruptcy court, the appearance of a rival could bring a runoff for who will be the first bidder in a court-supervised auction, the report says.
Fri, Aug. 12, 7:20 AM
Thu, Aug. 11, 5:30 PM
Fri, Aug. 5, 7:59 AM
- Duke Energy (NYSE:DUK) has invited Brookfield Asset Management (NYSE:BAM), French utility Engie (OTCPK:ENGIY) and electricity generator China Three Gorges to submit binding bids for its Latin American power assets, Bloomberg reports.
- DUK has said it hopes to sell ~4,400 MW of generating capacity in Central and South America, which could fetch ~$2B; binding offers for the assets reportedly are due by end of this month.
- CEO Lynn Good tells Bloomberg that DUK has started a detailed due diligence process with a smaller group of potential buyers and aims to announce a deal by year-end.
Thu, Jul. 28, 11:51 PM
- TerraForm Power (NASDAQ:TERP) is setting up a formal auction to sell itself in September, Bloomberg reports.
- SunEdison (SUNE) is cooperating with TERP on the sales process, which will be run separately from the sale it is planning for its other wind and solar assets, according to the report.
- Brookfield Asset Management (NYSE:BAM) and Appaloosa Management are said to remain interested in acquiring control of TERP, and the two suitors reached out to SUNE about buying its Class B shares in TERP at a premium but were unable to make progress.
Fri, Jul. 22, 6:26 PM
- TerraForm Power (NASDAQ:TERP) +3.2% AH after Brookfield Asset Management (NYSE:BAM) discloses that it and Appaloosa Management will team up to bid for SunEdison's (OTCPK:SUNEQ) stake in TERP.
- BAM is TERP's largest shareholder, with 11.1M class A shares, a ~12.1% stake, and has entered into swap agreements to potentially buy nearly 11.6M additional shares, which gives it a 24.8% stake.
- Appaloosa is TERP's third ranking owner, with 8.7M shares, or 9.5%.
Tue, Jul. 12, 12:35 PM
- Brookfield Infrastructure Fund III (BIF III) is the largest private fund raised by Brookfield (NYSE:BAM), and the largest private infrastructure fund ever raised in the industry. BIG III initially had a $10B fundraising target.
- With this fund, Brookfield has now raised about $27B across its flagship private fund strategies over the past 18 months.