Brookfield Asset Management: A Comprehensive Investment Guide

Brookfield Asset Management (BAM) is a leading global alternative asset manager with over $1 trillion of assets under management. The company has a diverse portfolio, including real estate, infrastructure, renewable power, private equity, and credit assets. BAM is an asset manager for private funds and serves as the general partner for several partnerships, investing its own capital into these partnerships. Investors can gain exposure to specific areas of its portfolio through partnerships such as Brookfield Property Partners, Brookfield Infrastructure Partners, Brookfield Renewable Partners, and Brookfield Business Partners. BAM also acquired a majority stake in Oaktree Capital Management, providing additional investment opportunities. With its market-leading position and strong growth profile, Brookfield offers investors a range of options to customise their basket of exposures or choose a little bit of everything that the company has to offer.

BAM's diverse portfolio

Brookfield Asset Management (BAM) is a leading global alternative asset manager with over $1 trillion of assets under management. BAM has developed a diverse portfolio of investments across renewable power and transition, infrastructure, private equity, real estate, and credit. This diversification allows BAM to generate attractive, long-term risk-adjusted returns for its clients and shareholders.

One of the key advantages of investing in BAM is the ability to customise your exposure to different asset classes. BAM has created several partnerships that allow investors to gain specific exposure to different areas of its portfolio. These partnerships include:

• Brookfield Property Partners (BPY): Focused on real estate, BPY owns, operates, and develops a diverse range of properties, including office, retail, multifamily, industrial, hospitality, and student housing assets.
• Brookfield Infrastructure Partners (BIP): BIP owns and operates critical infrastructure assets such as natural gas pipelines, electricity transmission lines, rail, toll roads, ports, and telecommunications towers in multiple countries.
• Brookfield Renewable Partners (BEP): BEP operates one of the largest publicly traded renewable power platforms, with a capacity of 18,000 MW generated through hydroelectric, wind, solar, and energy storage assets.
• Brookfield Business Partners (BBU): BBU is BAM's private equity partnership, focusing on owning and operating high-quality businesses with low costs and high barriers to entry. BBU has assets in various industries, including construction, energy, and mining.

In addition to these partnerships, BAM also has a main business at the top of its organisational chart. BAM serves as an asset manager for private funds and generates revenue through management fees and investments in its partnerships. Investing in BAM provides exposure to all the businesses under the Brookfield umbrella.

BAM's partnerships

Brookfield Asset Management (BAM) is a leading global alternative asset manager with over $1 trillion in assets under management. The company has a diverse portfolio, including renewable power, infrastructure, private equity, real estate, and credit.

BAM is the main business and serves as the general partner for several partnerships. It receives management and other fees from the accounts, funds, and partnerships it manages, and it also invests its own capital into its partnerships and other investments. Owners of BAM have exposure to and benefit from everything done under the Brookfield umbrella.

Due to its diverse portfolio, BAM has created several partnerships that allow investors to gain specific exposure to different areas. These partnerships include:

• Brookfield Property Partners (BPY): BPY focuses on real estate and has a global presence, with the majority of its assets in the United States, as well as in Canada, Brazil, Europe, Asia, and Australia.
• Brookfield Infrastructure Partners (BIP): BIP owns and operates infrastructure assets worldwide, including natural gas pipelines, electricity transmission lines, rail, toll roads, ports, telecommunications towers, and data centres.
• Brookfield Renewable Partners (BEP): BEP operates one of the world's largest publicly traded renewable power platforms, with the capacity to generate 18,000 MW of power using hydroelectric, wind, solar, and energy storage assets.
• Brookfield Business Partners (BBU): BBU is the private equity partnership, owning and operating high-quality businesses in various industries, including construction, energy, and mining.

In addition to these partnerships, BAM acquired a majority stake in Oaktree Capital Management in 2019, providing another investment opportunity for those specifically interested in Oaktree's business.

BAM's Oaktree business

In 2019, Brookfield Asset Management (BAM) acquired a majority stake in Oaktree Capital Management, a leader among global investment managers specialising in alternative investments. Oaktree has over $200 billion in assets under management, with a focus on opportunistic, value-oriented, and risk-controlled approaches to investments in credit, equity, and real estate.

To invest in BAM's Oaktree business, one can invest in one of Oaktree's two preferred stocks, Oaktree Specialty Lending Corporation (OCSL) or Oaktree Strategic Income Corporation (OCSI). Alternatively, investors can explore Oaktree's own brand of investment opportunities.

Following the acquisition, Oaktree Capital Group, LLC changed its name to Brookfield Oaktree Holdings, LLC ("BOH"). BOH holds a limited partner interest in Oaktree Capital I, L.P., which, along with certain other entities, forms part of the global investment management business of Oaktree Capital Management.

The acquisition of Oaktree by BAM created a rival to players like Blackstone, with a combined total of approximately $475 billion in assets under management. BAM's CEO, Bruce Flatt, expressed his desire for Oaktree's veteran distressed debt guru and co-founder, Howard Marks, to continue his investment work, including his renowned letters to clients. BAM intends to keep the Oaktree brand and allow it to operate independently, partnering to leverage their shared strengths and close investment philosophies.

BAM's private equity business

Brookfield Asset Management (BAM) is a leading global alternative asset manager with over $1 trillion of assets under management. The company has a diverse portfolio, including private equity, real estate, infrastructure, renewable power, and credit assets.

BAM's private equity strategy has been successful in fundraising, with strong momentum for many of its complementary funds. The company's vast operating team of hundreds of thousands of employees helps build value in the businesses it invests in. This, combined with its access to large-scale capital, enables BAM to make significant investments in sizeable and premier assets and businesses.

Overall, BAM's private equity business is an important part of its diverse portfolio, and the company's access to capital and operational expertise positions it well to make strategic investments in this area.

BAM's sustainability practices

One of BAM's key sustainability themes is the drive for sustainable construction. The company recognises the increasing demand for social and environmental sustainability in the construction industry and is committed to offering scalable sustainable solutions. This includes initiatives such as GROENR, which promotes sustainability in the Dutch construction sector through the new sustainable concrete concept, GROENR CONCRETE.

BAM also assists in the development of tools for managing Scope 3 carbon emissions in the FM sector and has achieved significant carbon emissions reductions in projects such as the Cross Tay Link Road project. The company has received awards for its sustainability efforts, including a regional sustainability award for its Medical School scheme in Lincoln.

In addition, BAM offers EV Charging solutions for businesses, supporting them on their road to zero emissions. The company also prioritises investing in renewable power and transition, infrastructure, and private equity, with a focus on long-term value creation.

Overall, BAM's sustainability practices are closely aligned with its business objectives, and the company is committed to creating a positive impact on people and the planet.

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