01—Abstract
Summary
Summary of the 20-F filed April 3, 2023. Cited figures are marked; the original filing is the authoritative source.
Brookfield Asset Management Ltd. (BAM) filed its 2022 10-K, detailing its operations as a pure-play global alternative asset manager.
The company, which began operating independently in December 2022 following a strategic separation from Brookfield Corporation, manages approximately $800 billiona in Assets Under Management (AUM) across diverse strategies including renewable power, infrastructure, private equity, real estate, and credit. A significant portion of its Fee-Bearing Capital (83% as of December 31, 2022) is long-dated or perpetual, providing a stable earnings base. The company generated substantial revenues and demonstrated growth in base management and advisory fees, driven by successful fundraising and capital deployment across its strategies.
Distributable Earnings, a key non-GAAP metric, saw an 11%b increase year-over-year, reflecting operational growth. The company's financial results are heavily influenced by its 25% ownership in Brookfield Asset Management ULC (the primary operating entity) and the broader economic environment affecting asset valuations and investment performance.
Brookfield highlights several risk factors, including dependence on the Corporation for certain operational aspects, volatility in its Class A share price, regulatory compliance, foreign currency fluctuations, and macroeconomic challenges such as rising interest rates and unfavorable economic conditions. The company's strategy focuses on increasing Fee-Bearing Capital, leveraging its competitive advantages in scale, operating expertise, and global reach to deliver value to clients and shareholders.
02—Key points
Key Highlights
- Brookfield Asset Management Ltd. is a pure-play global alternative asset manager with $800 billion in AUM as of December 31, 2022.
- 83% of Fee-Bearing Capital ($418 billion) is long-dated or perpetual, offering stability to earnings.
- Base management and advisory fees increased by 22% year-over-year in the pro forma consolidated statements, reaching $2.9 billion.
- Distributable Earnings increased by 11% year-over-year to $2.1 billion, driven by higher Fee-Related Earnings.
- The company operates across five key strategies: Renewable Power and Transition, Infrastructure, Private Equity, Real Estate, and Credit and Other.
- The strategic separation from Brookfield Corporation in December 2022 created BAM as an independent entity focused solely on asset management.
- Key risks include dependence on the Corporation, market volatility, regulatory changes, and macroeconomic factors like rising interest rates.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2022filed April 3, 2023Financial Statements
| Operating Expenses | $39.00M |
| Operating Income | -$2.00M |
| Interest Expense | $0 |
| Net Income | $19.00M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 396.20M |
| Shares Outstanding (Diluted) | 400.90M |
05—Questions
Frequently Asked Questions
What is Brookfield Asset Management Ltd.'s (BAM) primary business and how was it structured as of December 31, 2022?
Brookfield Asset Management Ltd. (BAM) operates as a pure-play global alternative asset manager. As of December 31, 2022, BAM holds a 25% interest in Brookfield Asset Management ULC, which is the primary entity that conducts the asset management business. Brookfield Corporation holds the remaining 75% interest in Brookfield Asset Management ULC. This structure was established following a strategic separation that occurred in December 2022.
What are BAM's key financial metrics and performance drivers?
BAM's financial performance is primarily driven by its Fee-Bearing Capital, which stood at $418 billion as of December 31, 2022. Key revenue streams include base management fees, incentive distributions, performance fees, and transaction fees. Distributable Earnings, a non-GAAP measure, is a key metric used by BAM to assess performance, showing an 11% increase year-over-year. The company's ability to raise and deploy capital across its diverse strategies is crucial for growth.
What are the main risks highlighted in the 10-K filing for BAM?
BAM identifies several key risks for investors, including: 1) dependence on Brookfield Corporation for operational support and capital, especially given the close relationship post-separation; 2) volatility in the trading price of its Class A shares; 3) risks associated with operating in a highly regulated industry and the potential for non-compliance; 4) foreign currency fluctuations affecting its global operations; 5) the impact of macroeconomic conditions such as rising interest rates and unfavorable economic conditions on its revenues and investment performance; and 6) risks specific to its investment strategies (e.g., real estate market downturns, infrastructure project risks).
How does BAM manage its diverse range of investment strategies?
BAM manages its assets across five principal strategies: Renewable Power and Transition, Infrastructure, Private Equity, Real Estate, and Credit and Other. Within these strategies, it offers a diversified suite of products including long-term private funds, permanent capital vehicles, perpetual strategies, and liquid strategies. This diversification aims to cater to a broad range of investor needs and market environments.
06—Continue