Brookfield Investor Day Transcript

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

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : It's Cherilyn Radbourne with TD Cowen. I wanted to dig in a little bit on transition investing. You mentioned on the last conference call that has now gained more credibility as a strategy for clients and they increasingly have allocations towards it. So maybe you could speak a little bit to where those allocations stand and where you think they could go? And then alongside that, how would you envision the product family growing into core and debt as we've seen in the other flagship families? Unidentified Company Representative Sure. So in a word, where are those allocations going, they're growing and they're growing very rapidly. But I'd perhaps make 2 points about what's driving that. One is, very simply, economics. There are very, very attractive risk-adjusted returns to be generated in transition investing with 0 return discount as a result of focusing on decarbonization. So part of that allocation decision is simply economic. And then secondly, there's an increased pragmatism around the world in transition investing that it's not about being black or white, but simply helping all sectors of the global economy become more sustainable than they are today. And that pragmatism is opening up a much larger opportunity set, a much bigger investable universe, which is therefore exciting people about allocating capital to this space. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2023 / 2:30PM, BN.N - Brookfield Investor Day To your comment around the product suite around transition investing, whenever we launch a new product, there's always 3 criteria. One, it needs to be a large investable opportunity set; two, we need to think that as Brookfield and Oaktree, we can be a global leader; and three, it can't conflict with anything that we're already doing in the business. And when we think about the transition opportunity set, there's certainly components of the white space there that would tick all 3 boxes, whether it be increasingly on the lending side or more special situations type investing, particularly for some of the new decarbonization solutions that need that scaling capital to get off the ground. Our focus right now is obviously the second vintage of our flagship fund, hopefully, another record fundraise. But no doubt, we'll be looking to expand the product offering within transition as well.

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : It's Cherilyn Radbourne from TD Cowen again. I think at one point in time, the company was contemplating possibly spinning off the insurance business kind of as a stand-alone entity in bringing in some third-party capital. Does that still make sense? And is that something that you can do while still preserving the strategic benefits to the overall franchise? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 12, 2023 / 2:30PM, BN.N - Brookfield Investor Day