Sunday, July 30, 2017

Brookfield Asset Management Update

Brookfield Asset Management (BAM) shares have been range bound between $30 and $40 over the last 2 years. This however masks the steady progress made by the company in growing value. The company now has AUM of $250B with $120B of fee paying AUM. The spin of of BBU which will unlock value through the growth in the Private Equity side of the business is a positive. The acquisition of Asciano, Brazilian Pipeline and Water Company, Colombian Hydro, Sun Edison assets, India Telecom Towers all are building the platform and growing the value. There has been good progress on the Manhattan West and Canary Wharf developments. Risks remain relating to Emerging Market currency trends and impact to GGP due to the Amazon disruption of retail and Brexit impact on UK currency and growth. If BAM can grow Fee Paying AUM to $200B over next 3-5 years and continue building its asset platform this cash generating business which will grow and prosper with the growth of the global economy and infrastructure should grow the value of BAM from $40B to $100B over the next 10 years.

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