Author Topic: BAM - Brookfield Asset Management  (Read 324935 times)



racemize

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rkbabang

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Re: BAM - Brookfield Asset Management
« Reply #552 on: July 31, 2018, 09:16:39 AM »
ReneSola Signs Non-Binding Offer to Sell 206.8 MW of Distributed Generation Operating Assets in China
https://seekingalpha.com/pr/17230197-renesola-signs-non-binding-offer-sell-206_8-mw-distributed-generation-operating-assets-china

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #553 on: July 31, 2018, 09:45:11 AM »
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2018-07-31/brookfield-is-said-to-near-6-8-billion-deal-for-forest-city?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-07-31%2Fbrookfield-is-said-to-near-6-8-billion-deal-for-forest-city

Do the Forest City assets go to the private funds?

$11B on Forest City and $15B on GGP... Over $26B of US real estate being acquired in 2018

Sounds like it went through the private opportunistic fund, and ~20% of BPY is in those funds.

I read it the same way as Joel does, so this likely to some extent will affect BAM dry powder on group level at closing, but likely not BAM total assets at group level, while BAM AUM and BAM fee bearing capital likely will get a bump upwards at closing of the deal.
« Last Edit: July 31, 2018, 09:46:45 AM by John Hjorth »
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gokou3

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Re: BAM - Brookfield Asset Management
« Reply #554 on: July 31, 2018, 09:58:35 AM »
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2018-07-31/brookfield-is-said-to-near-6-8-billion-deal-for-forest-city?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-07-31%2Fbrookfield-is-said-to-near-6-8-billion-deal-for-forest-city

Do the Forest City assets go to the private funds?

$11B on Forest City and $15B on GGP... Over $26B of US real estate being acquired in 2018

Sounds like it went through the private opportunistic fund, and ~20% of BPY is in those funds.

I read it the same way as Joel does, so this likely to some extent will affect BAM dry powder on group level at closing, but likely not BAM total assets at group level, while BAM AUM and BAM fee bearing capital likely will get a bump upwards at closing of the deal.


Their flagship $9B BSREP II fund was 80% invested per 2018Q1 report, meaning only $1.8B of dry powder remaining on that fund that would for sure be exhausted by these two deals.  BAM also also raised $9B for their estimated $20B BSREP III fund, so a good chunk of this commitment would be put into good use with these deals.

walkie518

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Re: BAM - Brookfield Asset Management
« Reply #555 on: July 31, 2018, 10:31:08 AM »
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2018-07-31/brookfield-is-said-to-near-6-8-billion-deal-for-forest-city?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-07-31%2Fbrookfield-is-said-to-near-6-8-billion-deal-for-forest-city

Do the Forest City assets go to the private funds?

$11B on Forest City and $15B on GGP... Over $26B of US real estate being acquired in 2018

Sounds like it went through the private opportunistic fund, and ~20% of BPY is in those funds.

I read it the same way as Joel does, so this likely to some extent will affect BAM dry powder on group level at closing, but likely not BAM total assets at group level, while BAM AUM and BAM fee bearing capital likely will get a bump upwards at closing of the deal.


Their flagship $9B BSREP II fund was 80% invested per 2018Q1 report, meaning only $1.8B of dry powder remaining on that fund that would for sure be exhausted by these two deals.  BAM also also raised $9B for their estimated $20B BSREP III fund, so a good chunk of this commitment would be put into good use with these deals.

off the top, I don't remember average fee per $1 AUM... at 1%, those two deals would boost 2019 net income by nearly 12% before carried interest?

racemize

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Re: BAM - Brookfield Asset Management
« Reply #556 on: July 31, 2018, 10:59:00 AM »
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2018-07-31/brookfield-is-said-to-near-6-8-billion-deal-for-forest-city?amp_js_v=a2&amp_gsa=1&usqp=mq331AQCCAE%3D#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-07-31%2Fbrookfield-is-said-to-near-6-8-billion-deal-for-forest-city

Do the Forest City assets go to the private funds?

$11B on Forest City and $15B on GGP... Over $26B of US real estate being acquired in 2018

Sounds like it went through the private opportunistic fund, and ~20% of BPY is in those funds.

I read it the same way as Joel does, so this likely to some extent will affect BAM dry powder on group level at closing, but likely not BAM total assets at group level, while BAM AUM and BAM fee bearing capital likely will get a bump upwards at closing of the deal.


Their flagship $9B BSREP II fund was 80% invested per 2018Q1 report, meaning only $1.8B of dry powder remaining on that fund that would for sure be exhausted by these two deals.  BAM also also raised $9B for their estimated $20B BSREP III fund, so a good chunk of this commitment would be put into good use with these deals.

off the top, I don't remember average fee per $1 AUM... at 1%, those two deals would boost 2019 net income by nearly 12% before carried interest?

If I recall correctly, I think those funds are at 1.5% flat fee and then a decent percentage of results over the target.  For opportunistic, the target should be 15%+.  Also, I believe the GGP buyout is pretty much only BPY, and involves waiving management fees for some period (or adding some amount of credits).  Incentive distributions have not started for BPY yet.

Spekulatius

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Re: BAM - Brookfield Asset Management
« Reply #557 on: August 06, 2018, 05:38:07 AM »
To be more specific here, berkshire made some awesome purchases at amazing prices when Williams Co was looking to delever their balance sheet in 2001 or 2002.  KernRiver pipeline and compression facilties were a total steal b/c Williams needed cash and needed it quickly....I am very happy BAM picked these assets up vs. PE....but as noted above between Oncur and  the noted above, BRK has missed out on $10+ of Utility like assets, which were right in their circle of competence

The price may not have been right for BRK. BAM can pay more, because BIP foots the bill, while BAM cashes in  fees, so growth in size benefits BAM. I am also not sure that the assets are utility like, there are some gathering assets in the packet, which generally have a lower lifespan and are hence of lower quality.

Just as an update, the valuation of the NG transmission assets sold to BOY was mentioned in ENB earnings CC. They were sold at 13x EBITDA. As an ENB shareholder, I am very satisfied with this price.
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chrispy

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Re: BAM - Brookfield Asset Management
« Reply #558 on: August 07, 2018, 04:27:27 PM »
Can anyone help me understand their business annuity company and how it complements BAM? I found these but don't understand the overlap...

Today:
http://m.newson6.com/story.aspx?story=38833437&catId=112042

Older:
https://www.benefitscanada.com/pensions/db/brookfield-launches-group-annuity-solutions-company-91734

EDIT: Is this similar to float?  Brookfield buys the pension obligations and over time has to pay out the benefits?  Could it also be beneficial in building relationships with institutions for investing in their funds and/or another way of driving fees to BAM?
« Last Edit: August 08, 2018, 04:29:18 AM by chrispy »

bizaro86

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Re: BAM - Brookfield Asset Management
« Reply #559 on: August 08, 2018, 09:00:00 AM »
Seems like a potentially creative way to raise large amounts of capital. Pension liabilities are a good fit for many of their long life type assets (infrastructure, RE)