Mr. Connor Teskey reports

BROOKFIELD ASSET MANAGEMENT ANNOUNCES STRONG THIRD QUARTER RESULTS

Brookfield Asset Management Ltd. has released its financial results for the quarter ended Sept. 30, 2023.

Connor Teskey, president of Brookfield Asset Management, stated: "We had an excellent quarter from a fundraising perspective. We raised $61-billion of capital year-to-date, with $26-billion of that capital in the third quarter. We are very fortunate that the businesses where we have established a leadership position remain in strong demand by investors. We closed our sixth private equity strategy at $12-billion, our largest ever to date. We also held strong closes for our fifth infrastructure flagship fund and third infrastructure debt fund, and began raising capital for our second transition flagship fund. When completed, those funds should represent the largest funds ever raised by a sponsor for each of these respective strategies."

He continued: "Two thousand twenty-three is shaping up to be an excellent year for capital raising, which sets the stage next year for excellent earnings and dividend growth. With fundraising momentum continuing to ramp up in the fourth quarter, first closes coming for our second transition flagship fund and our fifth real estate flagship fund, as well as the anticipated completion of a contract to manage AEL's insurance assets, we remain on track for close to our $150-billion capital raising target."

Operating results

Brookfield Asset Management

Net income for the publicly traded entity Brookfield Asset Management totalled $122-million for the quarter. Brookfield Asset Management owns a 25-per-cent interest in its asset management business and the remaining 75 per cent is owned by Brookfield Corp. In order to provide meaningful comparative information, the following discussion relates to the financial results on a 100 per cent basis for its asset management business (Brookfield Asset Management).

Brookfield Asset Management's distributable earnings were $568-million for the quarter and $2.2-billion over the last 12 months. Fee-related earnings comprise approximately 100 per cent of distributable earnings for both the quarter and the last 12 months. Despite price valuations of the company's publicly listed permanent capital vehicles, strong fundraising and capital deployment efforts drove fee-related earnings to $565-million for the quarter. This resulted in an increase of 8 per cent compared with the prior-year period.

Operating highlights:

• The company raised $71-billion over the last 12 months, with $26-billion raised during the third quarter and $61-billion raised year-to-date. Notable fundraising updates during the third quarter to date include:
  • The company raised a collective $4.3-billion of capital between its two largest infrastructure funds. In the fifth vintage of the company's flagship infrastructure fund, it raised $3-billion of capital, growing the fund to over $27-billion, and expect to hold a final close by the end of the year. Subsequent to quarter-end, Brookfield Asset Management held a final close for its third infrastructure debt fund of $1.3-billion of capital, making this vintage more than double the size of its predecessor fund with over $6-billion of capital commitments.
  • Brookfield Asset Management raised $11-billion across Oaktree funds, including $3.2-billion for its 12th opportunistic credit fund and $2.3-billion for its strategic lending partners fund.
  • Brookfield Asset Management held a final close of $715-million for the sixth vintage of its flagship private equity strategy during the quarter, which, at $12-billion, makes this the largest private equity strategy it has ever raised.
• Fee-bearing capital was $440-billion at the end of the third quarter, flat from the prior quarter and up $33-billion, or 8 per cent, over the past year:
  • The above year-over-year increase in fee-bearing capital contributed to growth in fee-related earnings to $2.2-billion over the last 12 months, representing a 13-per-cent increase over the prior-year period, excluding performance fees.
• In the third quarter, Brookfield Asset Management deployed $18-billion of capital into investments across a number of large-scale, high-quality businesses and assets. Notable deployments in the quarter include:
  • From the company's infrastructure flagship, it deployed $4.7-billion of capital, including $1.4-billion of co-invest capital, toward the acquisition of Triton International, announced in April of this year. Triton is the world's largest lessor of intermodal shipping containers, and this transaction expands the buildout of the company's international logistics and supply chain operations capabilities.
  • Also from the company's infrastructure flagship, it deployed $2.5-billion to finance the acquisition of Data4. This acquisition is Brookfield's first major entry into the European data centre market, and is an important part of the company's goal of owning and operating one of the largest hyperscale data centre platforms in the world.
  • Across Oaktree funds, Brookfield Asset Management deployed $6.5-billion of capital, including $1.9-billion deployed out of the 11th vintage of its opportunistic credit fund, approximately $660-million out of the 12th vintage of its opportunistic credit fund and approximately $660-million out of its sponsor fund credit business. Credit opportunities will only get better heading into 2024.
• As of Sept. 30, 2023, Brookfield Asset Management had a total of $102-billion of uncalled fund commitments:
  • Uncalled fund commitments include $45-billion which is not currently earning fees, but that will earn approximately $450-million of fees annually once deployed.
  • The company holds close to $3-billion of cash and equivalents on its balance sheet.

Strategic initiatives in the quarter

In September, Brookfield Asset Management announced a strategic partnership with Societe Generale to originate and distribute high-quality private credit investments through a new private investment-grade debt fund. The initial fund is targeting a total of 10 billion euros, and will launch with 2.5 billion euros of seed funding at inception from Brookfield Corp. and Societe Generale.

In August, Brookfield Asset Management and Sequoia Heritage finalized a 50/50 joint venture agreement to form Pinegrove Capital. Pinegrove is focused on secondary and structured capital solutions in the technology and venture capital space. Brookfield brings considerable expertise in secondaries and structured investments, and Sequoia Heritage has a strong record of investing in the technology sector. Brookfield Asset Management and Sequoia Heritage will collectively invest $500-million as anchor investors, with an inaugural fund expected to launch in the first half of 2024.

Regular dividend declaration and establishment of dividend reinvestment program

The board of directors of Brookfield Asset Management declared a quarterly dividend of 32 cents per share, payable on Dec. 29, 2023, to shareholders of record as of the close of business on Nov. 30, 2023.

Additional information

The letter to shareholders and the supplemental information for the three months and 12 months ended Sept. 30, 2023, contain further information on the company's strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company's website.

The statements contained herein are based primarily on information that has been extracted from the company's financial statements for the quarter ended Sept. 30, 2023, which have been prepared using United States GAAP (generally accepted accounting principles). The amounts have not been audited by Brookfield Asset Management's external auditor.

Brookfield Asset Management's board of directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements, prior to its release.

Information on the company's dividends can be found on its website under stock and distributions, distribution history section, at the company's website.

Quarterly earnings call details

Investors, analysts and other interested parties can access Brookfield Asset Management's third quarter 2023 results, as well as the shareholders' letter and supplemental information, on the company's website under the reports and filings section.

To participate in the conference call today at 11 a.m. ET, please preregister on-line. Upon registering, you will be e-mailed a dial-in number and unique PIN.

The conference call will also be webcast live on-line. For those unable to participate in the conference call, the telephone replay will be archived and available until Nov. 6, 2024, or available on the company's website.

About Brookfield Asset Management Ltd.

Brookfield Asset Management is a leading global alternative asset manager with $850-billion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. It invests client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy. It offers a range of alternative investment products to investors around the world -- including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors. It draws on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for its clients, across economic cycles.

Please note that Brookfield Asset Management's previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+, and can also be found in the investor section of its website. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

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