BROOKFIELD ASSET MANAGEMENT LTD Q2 2023 Earnings Call Transcript

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

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : My first question is with respect to the retrenchment going on in the banking sector. I was hoping you could talk about the potential for BAM to collaborate with your banking partners by effectively providing an external balance sheet to them. And just touch on what you consider to be BAM's competitive advantages to be the partner of choice in those situations.

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : And then secondly, with respect to BGTF II, I was hoping you could give some more color on how the market interest for that product has evolved, how important the deployment track record of the first fund is to that as well as the extent to which clients are differentiating between transition funds versus what might be best called green fund?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Just wanted to ask on the fundraising side, so you've talked about $37 billion raise this year, if exclude the $50 billion from AEL, how should we think about in terms of the key moving parts of getting to that a $100 billion? I think Bahir you mentioned the $20 billion that you're expecting from opportunistic and credit and direct lending for the remainder of this year. I don't know if it's this year, next 12 months, but if you can maybe give a little bit more insight as to maybe the potential size of some of the larger funds that would contribute getting to that a $100 billion target?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : And, sorry, just before I ask my second question, Bahir, just to confirm, you were saying about 50% of that remainder amount would come from the flagship funds?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : And then my second question is, I know, it's early days on fundraising for BSREP V, but just wondering if you're able to summarize at least the nature of the conversations and feedback and interest that you've had from LPs? And any sort of in insights you can share in terms of on asset mix, if that's might change much versus Fund 4?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : I wanted to talk about kind of the broader industry, and there have been some articles about fee pressure or discounting taking place despite kind of face rates on funds remaining intact. So I kind of longer fee holiday periods, larger co-investment rights, et cetera. Are you seeing any of that in your flagship fundraising today? And perhaps which kind of type of product are you seeing the least amount of pressure versus where you're seeing a bit of pressure?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : And maybe a quick follow-up before I ask my second question, Connor, where would you rank the absolute fee rate or the base fee rate? Like where would that rank as a factor amongst your LPs in their decision-making process with respect to the fund managers that choose? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2023 / 3:00PM, BAM.N - Q2 2023 BROOKFIELD ASSET MANAGEMENT LTD Earnings Call

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : And my second question, just coming back to the discussion on real estate and perhaps seeing the best opportunity that you've seen going back to the GFC, but it has been in real estate for a very long time? And Connor, you mentioned that the mindset for LP investors is starting to shift today in terms of concerns or evaluation kind of outlook to allocating capital in search of value. Like how long does that mindset shift typically take? Is it 6 months? Is it closer to 2 years? And like where in that cycle would you say the LP mindset is today?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : One clarification, if I may. Look the comment on BSREP V maybe being your best ever given a current environment, is that comment pertaining to the size of the fund or the potential returns, or both?