Author Topic: BAM - Brookfield Asset Management  (Read 511168 times)

villainx

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Re: BAM - Brookfield Asset Management
« Reply #340 on: January 04, 2018, 04:49:34 PM »
BIP found a way to scale up in a meaningful way quickly after their spinoff, looks like BBU is doing the same.
« Last Edit: January 04, 2018, 04:59:36 PM by villainx »


gokou3

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Re: BAM - Brookfield Asset Management
« Reply #341 on: January 04, 2018, 05:46:38 PM »
I'm sorry for double posting.

It seems that Brookfield just did it again: BBP.UN to aquire Westinghouse Electric Company.

Seems like a deal similar to the Terraform deal after SUNE filed for bankruptcy. And a lot of capital send to work for the BAM system and BAM clients/BAM funds, most likely.

Subject to Bankruptcy Court approval, expected to close in third quarter of 2018.

- - - o 0 o - - -

BAM certainly has a lot of appeal to me. Let BAM do the value investing, and I can continue to behave like Beetle Bailey.

As long as they didn't take on those &*#%$^& CBI nuclear projects.  I'm assuming they wouldn't do something like that.

I believe this alleviates your concern?

Brookfield to buy Westinghouse's global nuclear business in $4.6-billion deal
http://business.financialpost.com/commodities/energy/brookfield-business-partners-to-buy-westinghouse-for-4-6-billion

Quote
The deal won’t include what had been the company’s most prized projects — plans to build its AP1000 reactors for U.S. utilities in South Carolina and Georgia. Those projects, plagued by delays and cost overruns, eventually led to its downfall, and Westinghouse has used the Chapter 11 process to distance itself from any obligations to them.

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #342 on: January 04, 2018, 10:10:12 PM »
Here is an article from NewsMaxFinance, that supplements gokou's post well.

BAM cherry picking & fishing in frothy white waters, leaving some proceeds and all the crappy things [in total, likely breadcrumbs] to the Westinghouse creditors.

Forbes [January 4, 2018]: Brookfield Goes Nuclear: Why You Should Watch The Canadian Giant's Restructuring Work.
« Last Edit: January 04, 2018, 11:02:15 PM by John Hjorth »
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investmd

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Re: BAM - Brookfield Asset Management
« Reply #343 on: January 05, 2018, 04:12:17 AM »
Thank you for the informative article - that continues the bullish on BAM theme present on this board.

Question: What does BAM actually hold vs. the spinoffs (BEP, BIP, BPO, others...) ? Do these spinoffs pay a fee to parent BAM? When an acquisition is made how do they decide if it is held by BAM or other? In this case it seems that the investment is being made and held under Brookfield Business Partners. If one owns BAM does one reap the benefits from spinoff companies? Seems to me that each spinoff has it's own CEO but works alongside BAM management to make deals.

Thanks for clarification.


Here is an article from NewsMaxFinance, that supplements gokou's post well.

BAM cherry picking & fishing in frothy white waters, leaving some proceeds and all the crappy things [in total, likely breadcrumbs] to the Westinghouse creditors.

Forbes [January 4, 2018]: Brookfield Goes Nuclear: Why You Should Watch The Canadian Giant's Restructuring Work.

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #344 on: January 05, 2018, 05:54:03 AM »
This acquisition seems a lot like Teekay where it is service/fee based and not very dependent on commodity pricing.

Bam owns a portion of all LPs and receieves fees from them. They have criteria that helps determine which LP gets which assets. For instance, BBU receieved a water infrastructure business in Brazil because it wasn't a dividend producer. If it was, BIP would have receieved it.

investmd

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Re: BAM - Brookfield Asset Management
« Reply #345 on: January 05, 2018, 09:22:43 AM »
This acquisition seems a lot like Teekay where it is service/fee based and not very dependent on commodity pricing.

Bam owns a portion of all LPs and receieves fees from them. They have criteria that helps determine which LP gets which assets. For instance, BBU receieved a water infrastructure business in Brazil because it wasn't a dividend producer. If it was, BIP would have receieved it.

Thanks Chrispy. In that case, for one looking to compound over a 10 yr + time period, and who doesn't need regular dividend payout, likely best to buy the parent BAM rather than buying individual LPs such as BIP, BEP. Does that make sense?

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #346 on: January 05, 2018, 09:40:26 AM »
Not in any way trying to take chrispy's privilege to respond here, just trying to contribute in a constructive way here for all readers on investmd's question.

The short and simplified answer to the question is yes.

The easiest way to get a perception of the fee structure inside the whole BAM system is to study Investor Day Presentation September 27, 2017 Presentation Material, section "Scorecard", p. 62 & onwards.
« Last Edit: January 05, 2018, 09:42:41 AM by John Hjorth »
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #347 on: January 05, 2018, 10:42:11 AM »
I agree with John. BAM benefits from the performance of all and receives fees.

The investor days presentations and transcripts are very enlightening. Very helpful with understanding what they do and how the business will grow.

Additionally, BAM invests along side the institutional clients. During the talk, Bruce mentioned how they will begin receiving the returns from early funds that will be immediately reinvested. I believe he talked about how that does not fully show up yet in the financials. I need to refresh myself on that and could be mistaken.

chrispy

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Re: BAM - Brookfield Asset Management
« Reply #348 on: January 05, 2018, 10:46:44 AM »
Hidden behind the shadows of the Westinghouse deal:

http://m.nasdaq.com/press-release/brookfield-business-partners-to-acquire-controlling-interest-in-schoeller-allibert-in-partnership-20180105-00038

Bruce mentioned in the recently posted Bloomberg video he was bullish on private equity. This must have been what he was talking about. BBU up 5 percent yesterday and today

TorontoRaptorsFan

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Re: BAM - Brookfield Asset Management
« Reply #349 on: January 05, 2018, 12:43:03 PM »
If Buffett is looking for an elephant to purchase why not acquire BAM and make Flatt the next CEO...