Brookfield to spin off 25% of asset management unit, Q1 earnings beat

May 12, 2022 8:56 AM ETBrookfield Asset Management Ltd (BAM), BAM.A:CABy: Liz Kiesche, SA News Editor18 Comments

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Brookfield Asset Management (NYSE:BAM) stock is rising 4.2% in premarket trading after the investment company said it will spin off a 25% stake in its asset management unit to shareholders.

The company expects to distribute and list the asset management as a publicly traded company by the end of the year. The distribution is expected to be tax-free for Canadian and U.S. shareholders.

The parent and the asset manager will both trade on New York and Toronto stock exchanges. BAM will own 75% of the manager and current Brookfield shareholders will own the rest.

Earlier this week, Business Insider reported that Brookfield (BAM) would proceed with the spinoff plan.

The investment giant also reported Q1 earnings that beat the consensus estimate as fundraising remained strong in the quarter.

Q1 distributable EPS of $0.96 exceeded the $0.64 average analyst estimate and fell from $1.04 in Q4 2021 and $1.80 in the year-ago quarter.

Fee-bearing capital stands at $379B, up $14B from the previous quarter and $59B higher than a year ago.

Fee-related earnings of $501M

On track to realize up to $1B of realized carried interest during the year. The company generated $896M of carried interest during the quarter; it generated $5.0B of carried interest for all of 2021.

Gross target carried interest of $4.1B annually vs. $4.0B in Q4 2021.

Brookfield (BAM) has $85B of capital available to deploy into new investments, down from $92B at Dec. 31, 201.

Earlier, Brookfield Asset Management (BAM) reports Q1 results

This was corrected on 09/23/2022 at 4:55 PM. An earlier version erroneously had a 20% figure in the story's headline.

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