Investor Presentaiton
Notice to Recipients
INVESTOR DAY 2021 - NOTICE TO RECIPIENTS
Brookfield is not making any offer or invitation of any kind by communication of this document to the recipient and under no circumstances is it to be construed as a prospectus or an advertisement.
Except where otherwise indicated herein, the information provided herein is based on matters as they exist as at June 30, 2021 and not as of any future date, is subject to change, and, unless
required by law, will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof.
Unless otherwise noted, all references to "$" or "Dollars" are to U.S. Dollars.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION
This presentation contains "forward-looking information" within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of the U.S. Securities Act of
1933, the U.S. Securities Exchange Act of 1934, and, "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities
regulations.
Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include, but are not limited to, statements which reflect
management's expectations regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives,
strategies and outlook of Brookfield Asset Management and its affiliates, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods.
Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as "expects," "likely," "anticipates," "plans," "believes," "estimates," "seeks,"
"intends," "targets," "projects," "forecasts," or negative versions thereof and other similar expressions, or future or conditional verbs such as "may," "will," "should," "would" and "could."
Below are certain of the forward-looking statements that are contained in this presentation and a number of assumptions underlying them.
Where this presentation refers to realized carried interest or carried interest, carried interest for existing funds is based on June 30, 2021, carry eligible capital or carried interest for future
funds is based on Brookfield's estimates of future fundraising as at June 30, 2021, as described below. In addition, this presentation assumes that existing and future funds meet their target gross
return. Target gross returns are typically 20+% for opportunistic funds; 13% to 15% for value-add funds; 12% to 15% for credit and core plus funds. Fee terms vary by investment strategy (carried
interest is approximately 15% to 20% subject to a preferred return and catch-up) and may change over time. This presentation assumes that capital is deployed evenly over a four-year investment
period and realized evenly over three years of sales. The year in which such sales commence varies by investment strategy and ranges from year 6 to year 10.
Where this presentation refers to future fundraising, or growth in fee-bearing capital we assume that flagship funds are raised every two to three years based on historical fund series and non-
flagship funds are raised annually within certain strategies, and in other strategies every two to three years. Unless otherwise stated, and for new product offerings, fund series' sizes remain
constant and consistent with target funds from period-to-period. This presentation also assumes that distributions are based on fund realizations evenly over the last years of fund life. The year in
which such sales commence varies by investment strategy.
References to distribution, growth, market valuation, and issuances relating to listed affiliates, include the following assumptions: (i) BIP and BEP grow over the plan period in line with
historical distribution rate growth, assuming current yield; (ii) the market price to IFRS discount on BPY is eliminated; (iii) BBU share price grows at a 10% annual rate; and (iv) total listed partnership
capitalization includes issuances related to debt and preferred equity for BIP and BEP, based on current debt to capitalization levels.
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