Brookfield Asset Management 4Q2019 Results

Brookfield Asset Management (BAM) reported 4Q2019 Results that indicates the company is firing on all cylinders. The company is enhancing its moat after acquisition of Oaktree Credit Franchise and is well positioned along with BX to serve clients in this Low Interest Rate World. 

BAM Fee Paying AUM grew to $247B. FRE Excluding Performance Fees for 2020 are at a run rate of $1.3B. 

2020 Run Rate Fees Plus Target Carry could be $6B for the year which could imply $4B value creation from Asset Management Franchise. Add in the $1.7B to $2B income for BAM from listed and unlisted investments (Invested Capital Income) the total value creation could reach $6B for the year.

Overall BAM can be valued at $75 for 2020 end with $45 for Asset Management Franchise and $30 to $35 for Invested Capital Net of Liabilities. 

BAM has delivered 18% return over last 25 years and 20% over last 20 years. The company is much stronger today than ever before and has tremendous growth potential in Renewable Energy, Infrastructure, Real Estate and Credit. It is quite possible earnings and value can double over the next 5 years and continue generating compounded returns of 18-20% over next decade if business plans are executed to perfection and Low Interest Rates prevail. 

BAM 4Q2019 Letter

BAM 4Q2019 Results