BROOKFIELD ASSET MANAGEMENT LTD at Goldman Sachs U.S. Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alex Blostein - Goldman Sachs - Analyst : We'll see, and a few more to go. So I'll try to keep it fresh though. Okay. So let's start with next year, and your priorities for 2025. You guys had an Investor Day only a couple of months ago. You refreshed your five year targets. You talked about high teen growth in FRE, and total earnings, obviously pretty ambitious, but realistic. As you start to execute towards that plan, talk to us a little bit about what your key priorities are? What your focus areas are for next year?

Question: Alex Blostein - Goldman Sachs - Analyst : That's a big statement. Okay. Let's unpack why that is. Let's start with fundraising, to your point, the environment has gotten better, including the AEL acquisition this year. You guys brought in about $110 billion of info, obviously, some of that is inorganic, but even the organic piece was quite substantial. As you turn your focus to 2025, talk to us a little bit about your expectations for next year's fundraising and also take into account that the number of your big flagship funds are wrapping up this year, what are likely to be the bigger drivers of fundraising in 2025?

Question: Alex Blostein - Goldman Sachs - Analyst : Yeah. No, definitely very large addressable market for sure. Over the last couple of quarters, you talked a bit more about monetization opportunities. It's part of the business, you return capital, you invest capital, you harvested your return to (inaudible) piece. When you look out into sort of expectations for increased capital velocity in the space, the monetization outlook feels much better than it's been over the last few years. So talk to us a little bit about what that means for Brookfield, which part of your investment portfolios you're likely to be more active in, monetizing things over the next kind of 12 to 18 months. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 3:40PM, BAM.N - BROOKFIELD ASSET MANAGEMENT LTD at Goldman Sachs U.S. Financial Services Conference

Question: Alex Blostein - Goldman Sachs - Analyst : Yeah, no clearly a lot of pent up demand also for LPs to get some of that cash back in their hands. For you guys though, so when I think about 2025 exit opportunities, I know you said you guys were active in renewables on the exit front, is that likely going to be the pool of capital that you'll see more monetization in next year as well, or is that going to broaden?

Question: Alex Blostein - Goldman Sachs - Analyst : Great. Okay, let's flip to the other side of that coin, and let's talk a little bit about deployment of capital. A little steadier, but also you guys have seen a lot of acceleration in your own activity when you deploy capital yet still, I think there's over $100 billion of capital available for deployment. And you spoke to very sizable transactions that are in the pipeline on the last call, and really over the last over the last couple of quarters. Can you frame areas of deployment that you're most active in today? With many of your peers focused on some of the similar trends, AI, infra, renewable energy, housing, private credit. What differentiates Brookfield and the opportunity to deploy capital in these areas?

Question: Alex Blostein - Goldman Sachs - Analyst : Okay. Got you. Okay. Why don't we get into some of the individual businesses? I wanted to start with private credit. It's Brookfield's largest business at this point. I think it accounts for a little bit of over a third of the firm's total management fees. There are several businesses that sit underneath it. There's Oaktree and some of their more established kind of distressed businesses, direct lending business, some of their liquid capabilities. You've got the insurance business that we talked a little bit about earlier. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 3:40PM, BAM.N - BROOKFIELD ASSET MANAGEMENT LTD at Goldman Sachs U.S. Financial Services Conference There's the IMA, and there's the relationship with Brookfield corporate. And there's some of the more newer capabilities in asset back finance, private credit 2.0, however you want to call that. Over the next two to three years, can you talk a little bit about which one of these sub verticals you most excited about, or what do you see the most attractive growth opportunities for Brookfield over the last few years?

Question: Alex Blostein - Goldman Sachs - Analyst : Yeah. You bring up a really interesting point with respect to origination. And that's the question that we get a lot of, I think a lot of managers try to really differentiate themselves when they talk about private credit, asset backed finance, these longer duration paper in the context of other things that are available out there. So in terms of your capabilities, you've acquired Castlelake, that brings some unique capabilities on the origination front. How do you think about the sort of internal TAM from your ownership in some of these really large infrastructure assets and other things, that could produce enough origination for you on the credit side?

Question: Alex Blostein - Goldman Sachs - Analyst : Yeah. Insurance will be a big part of that, as you mentioned. So let's talk for a couple of minutes about that. You guys have pretty ambitious growth targets there. Even earlier today, you talked about sort of $20 billion-ish a year in origination from your sort of internal insurance channel, that's now part of BN. You talked about that going to $40 billion at some point of time. It's a pretty competitive space. There's a lot of others that are trying to do similar. What gives you guys an edge in insurance? How do you achieve these targets? How do you gain share, especially an annuity channel which has been fairly mature and pretty competitive?

Question: Alex Blostein - Goldman Sachs - Analyst : Got it, sort of related to that. Wealth came up a couple of times over our conversation today, and obviously, it's been an important topic for the space for a while. You guys have a couple of semi liquid retail products dedicated to that market, one in private credit, one in Infra. Those are scaling but remain relatively small in the context of Brookfield Asset Management. Talk to us a little bit about other product innovation you're thinking about for this channel. How do you plan to scale and amplify distribution of this part of the market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 3:40PM, BAM.N - BROOKFIELD ASSET MANAGEMENT LTD at Goldman Sachs U.S. Financial Services Conference

Question: Alex Blostein - Goldman Sachs - Analyst : Scale is critical in this business. You guys are obviously very large, you have a lot of resources deployed here. But as you think about partnering potential with some of the other existing players, whether it's like a KKR and Capital Group partnership, but there are others that are leaning into this convergence between liquid and illiquid markets. How are you thinking about that as a prospect for Brookfield? Does it make sense? Does it not make sense? Is that something that's on your radar?

Question: Alex Blostein - Goldman Sachs - Analyst : Okay. Let's talk about some of the other key points of the business. I want to zone in on renewables, been a really powerful growth area for the firm. Both energy transition business and your kind of legacy kind of classic renewables business as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 3:40PM, BAM.N - BROOKFIELD ASSET MANAGEMENT LTD at Goldman Sachs U.S. Financial Services Conference It's part of the, I wouldn't say the entire growth theme here, but part of it was the fact that Inflation Reduction Act opened up incremental opportunities in this marketplace for you and some of the others. Nobody knows what happens, but to an extent the Act gets watered down or goes away entirely. How do you think about that with respect to interest in the asset class, and the returns you can generate there?

Question: Alex Blostein - Goldman Sachs - Analyst : I see. Okay. Let's wrap up with a question around some of the inorganic opportunities you guys might see in the business. You've been inquisitive in the past, obviously, most recently, you've done a couple of relatively smaller deals, but the ones that give you some interesting of capabilities. Talk to us a little bit about the framework for M&A from here. Obviously, Brookfield Asset Management is a very healthy balance sheet, lots of cash, quite healthy multiple. What else is on your radar from an M&A perspective? And is it likely to follow a similar path, kind of smaller niche things? Or could there be something bigger on the horizon?