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
Tue, Nov. 29, 9:01 AM
- Brookfield Infrastructure Partners (NYSE:BIP) sold 15.625M units at $32 each in a secondary offering, with underwriters RBC Capital, CIBC Capital, Citibank, BAML, and HSBC.
- In addition, Brookfield Asset Management (NYSE:BAM) is buying another 8.139M units at that price.
- Total gross proceeds are about $750M.
- The underwriters have a greenshoe option for another 2.3M units at the offering price.
- BIP -3.55% premarket to $31.65.
Mon, Nov. 28, 7:29 AM
Fri, Nov. 18, 9:55 AM
- TerraForm Power (TERP +4.4%) pops higher at the open after Brookfield Asset Management (BAM +0.2%) affirms a 12.1% active stake in the company, proposes to pay $13/share for a 50%-60% stake and says it is prepared to make an offer for TerraForm Global (GLBL +4%).
- BAM also offers to act as interim sponsor of the TerraForm companies for a period of up to six months.
- BAM, which in June expressed interest in buying SunEdison's (OTCPK:SUNEQ) stake in TERP, said last week it had met with the companies and their advisers to discuss options for a deal.
Fri, Nov. 11, 8:06 AM
- Q3 FFO of $883M or $0.87 per share vs. $501M and $0.48 one year ago.
- Fee-related earnings up 37% Y/Y to $173M, with fee-bearing capital up 23% to $111B. FFO from invested capital up 17%.
- Deals last quarter will put $10B to work; $20B put to work in last twelve months.
- Dry powder at quarter-end of $19B.
- Conference call at 11:30 ET
- Previously: Brookfield Asset Management beats by $0.36 (Nov. 11)
- BAM flat premarket
Fri, Nov. 11, 7:04 AM
Thu, Nov. 10, 5:30 PM
Thu, Nov. 10, 4:53 PM
- Brookfield Asset Management (NYSE:BAM) met with members of TerraForm Global’s (NASDAQ:GLBL) board this week to discuss the possibility of buying the company as part of a deal to acquire TerraForm Power (NASDAQ:TERP), according to an SEC filing.
- BAM discussed two potential transactions - One would include BAM purchasing all outstanding Class A and Class B shares in TerraForm’s companies, which would stay publicly listed, and BAM would replace bankrupt SunEdison (OTCPK:SUNEQ) as a sponsor of the companies; in the other scenario, BAM would buy the two yieldcos outright for cash.
- BAM and its partners already tried to take over TERP, but there had been no indication of public interest in GLBL.
Thu, Nov. 10, 8:12 AM
- Full-year comparable sales are now expected to be down just 2.5-3% vs. previous guidance of down 3-4%. Full-year EPS guidance remains at $3.15-$3.40.
- Macy's (NYSE:M) is teaming with Brookfield Asset Management (NYSE:BAM) on a "pre-development plan" for about 50 Macy's real estate assets, with an option for Macy's to identify and add properties into the partnership.
- Conference call at 10 ET
- Shares -0.5% premarket
- Previously: Macy's misses by $0.24, misses on revenue (Nov. 10)
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