BROOKFIELD ASSET MANAGEMENT LTD Q3 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 : I was hoping you could start by giving us some color on what you're seeing in terms of consolidation amongst subscale alternative managers in this environment and whether that's something you continue to monitor with a view to possibly having an opportunity to round out your capabilities in select areas.

Question: Cherilyn Radbourne - TD Securities Equity Research - Analyst : Then with respect to insurance, I was looking for an update on how much of BAM insurance AUM has been committed versus deployed to BAM and Oaktree strategies to date and how you would expect that to evolve and impact FRE over the next 12 months?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : My first question is just with some of the recent announcements on new funds in partnership with SocGen and Sequoia, can you just talk about what kind of opportunity there is to partner with third parties to help create distribute new strategies?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. And just my second question was back at Investor Day, you talked about using the cash to make investments in LP commitments to the non-flagship non-Oaktree funds help seed new funds, but also invest if any of the affiliates were raising new equity. I think it was from the letter to shareholders, you talked about doing the LP investments and seeding new funds, but you didn't reference investing in new equity of the affiliates or raising capital. Is that still the plan? Or are you guys not going to be doing that going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2023 / 4:00PM, BAM.N - Q3 2023 BROOKFIELD ASSET MANAGEMENT LTD Earnings Call

Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst : Okay. Maybe as a follow-on to that last response on operating leverage. You've been essentially holding the line on expenses for a few quarters now. How would you guide us to think about expense growth looking out into 2024? I'm just trying to size the magnitude of the margin expansion opportunity with some of these chunkier fund closings starting to accrue fees towards the end of this year.

Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst : Okay. Fair enough. And then just in light of some of the comments on the private credit franchise, I just wanted to get your thoughts on how the product line might evolve over time to accommodate a step change in the scale of the insurance business. Do you see potential for inorganic growth as a means to further broaden out that suite of capabilities? Just wondering if there are any obvious gaps in the product lineup that you might look to address in private credit specifically?

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : And 2 really quick ones for me, more of a clarification on both. Just coming back to Rob's question on private fund distributions. Is there a kind of quantum range of expectations for '24 that you're comfortable providing like taking into consideration the underlying market liquidity that you think will support the forecast deployment initiatives that you have? Or is it hard to say what that may be at this point stage.

Question: Mario Saric - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. And then my second one, and I appreciate carry mentioned it may be a little bit too early to talk about BIF 6. As you mentioned, the 5 is already 40% committed. I know that historically, you'll look to start fundraising for a successor fund once I think you put the 70% to 75% kind of deployed committed area, which if the thoughts on peak interest rates and transaction activity accelerating materialize, I guess, we wouldn't be too far off of that level, presumably by the end of next year, kind of early to mid-25%. Is that a very simplistic way of thinking of it? So when you hit some of 75%, you would push forward with the next fund pending client demand? Or do you like to see a specific amount of time elapsed between the funds? So for example, if I look at Slide 30, the supplemental on the core plus infra side, the vintages are about 3 years spread of the part. So is it more of a time thing? Or is it simply hitting 775%. If there's client demand, you'll start the next series.