Brookfield Asset Management

Brookfield Asset Management Inc. is an alternative asset management company focusing on real estate, renewable power, infrastructure and private equity.[4] The company's headquarters are located in Toronto, and it also has corporate offices in New York City, London, Rio de Janeiro and Sydney.[5][6]

Brookfield Asset Management Inc.
Public
Traded asTSX: BAM.A
NYSE: BAM
Euronext: BAMA
S&P/TSX 60 component
ISINCA1125851040 
IndustryFinancial services
Founded1899 (1899)
FounderWilliam Mackenzie
Frederick Stark Pearson
HeadquartersBrookfield Place,
Toronto
,
Canada
Area served
Worldwide
Key people
Frank McKenna (Chairman)
Bruce Flatt (CEO)
ServicesAsset management
RevenueUS$56 billion (2018)[1]
US$7.5 billion (2018)[1]
AUMUS$510.57 billion (2019)[2]
Total equityUS$97 billion (2018)[1]
Number of employees
80,000 operating employees
800 investment professionals[1]
Subsidiaries
Websitewww.brookfield.com/ 

History
See also: Edper Investments

The company was founded in 1899, as the São Paulo Tramway, Light and Power Company by William Mackenzie and Frederick Stark Pearson. Operating as in construction and management of electricity and transport infrastructure in Brazil.

In 1904, the Rio de Janeiro Tramway, Light and Power Company was founded by Mackenzie's group.[7]

In 1912, Brazilian Traction, Light and Power Company was incorporated in Toronto as a public company to develop hydro-electric power operations and other utility services in Brazil, becoming a holding company for São Paulo Tramway Co. and Rio de Janeiro Tramway Co.[8]

In 1916, Great Lakes Power Company was incorporated to provide hydro-electric power in Sault Ste. Marie and the Algoma District in Ontario.[9]

In 1966, Brazilian Traction, Light and Power Company changed its name to Brazilian Light and Power Company, and again in 1969, changed its name to Brascan Limited.[8] Brascan is a portmanteau of "Brasil" and "Canada".

In 1979, the company's Brazilian assets were transferred to Brazilian ownership (Eletropaulo and Light S.A.), the company meanwhile having diversified to other areas.[8] The company provided electricity and tram services in São Paulo and Rio de Janeiro, and the Brazilian side after a later restructuring still operates as Light S.A., short for Brazilian Traction, Light and Power Co. Ltd.[10]

In 2005, after 37 years, Brascan Corp. was renamed to Brookfield Asset Management Inc.[11]

In November 2008, in a process supervised by the Alberta courts, PricewaterhouseCoopers (PwC) was appointed receiver of a separate public company, Birch Mountain Resources, after Birch Mountain had defaulted on its debts. Birch Mountain's assets of $50 million dollars were transferred to Tricap Partners Ltd, which operates under the Hammerstone Corporation, a subsidiary of Brookfield Special Situations Group.[12] In September 2010, a group called Birch Mountain Shareholders for Justice filed a lawsuit with the Superior Court of Justice in Ontario, Canada, against Brookfield Asset Management challenging this acquisition and transfer of assets.[13] After five years of litigation the case was dismissed.[14] In May 2015, the plaintiffs filed a notice of appeal[15] which was also dismissed.[16]

In 2009, Brookfield sued financial and insurance giant American International Group (AIG) in a Manhattan federal court, alleging that AIG's collapse caused default provisions in interest-rate swaps. The suit stemmed from AIG's acceptance of a $182.3 billion bailout package from the federal government. The lawsuit backfired and the litigation ended with Brookfield agreeing to pay $905 million to settle the lawsuit.[17]

In 2013, a Brazilian prosecutor filed charges against the company's local division, alleging the company paid bribes to local officials, which is also a violation of U.S. federal criminal law. The bribes were allegedly used to pave the way for Brookfield to build a shopping center in Sao Paulo. The U.S. Securities and Exchange Commission also opened a formal investigation into the company about the bribery charges. The company denied the charges. The U.S. Department of Justice also opened a criminal investigation into the company regarding these allegations, and did not end up making any arrests.[18][19] According to the Stanford Law School Foreign Corrupt Practices Act Clearinghouse, which studied the case, the investigation and filing of charges was initiated by a whistleblower and anonymous tip. The company disclosed the investigations on several 6-K forms between 2013 and 2015.[20]

By 2018, Brookfield's major public subsidiaries included Brookfield Infrastructure Partners, Brookfield Renewable Partners, Brookfield Property Partners, and Brookfield Business Partners[21]

In August 2018, Brookfield signed a 99 year lease on Jared Kushner's financially troubled 666 Fifth Avenue skyscraper. The deal raised suspicions that the Qatar Investment Authority, a major investor in Brookfield, was attempting to influence the Trump administration.[22][23]

In August 2018, Brookfield purchased Westinghouse Electric Company, a manufacturer of large nuclear reactors, out of bankruptcy for $4.6 billion.[24] On March 13, 2019, Brookfield Asset Management announced that it had agreed to buy most of Oaktree Capital Management for about $4.7 billion, creating one of the world’s largest alternative money managers.[25]

In response to the 2020 coronavirus epidemic, Brookfield's CEO, Bruce Flatt, assessed that the economic fallout was "much more manageable" than previous meltdowns.[26]

Finances

For the fiscal year 2018, Brookfield Asset Management reported earnings of US$3.584 billion, with an annual revenue of US$56.771 billion, an increase of 39.2% over the previous fiscal cycle. Brookfield Asset Management's shares traded at over $38 per share, and its market capitalization was valued at over US$40.8 billion in November 2018.[27]

Year Revenue
in mil. USD$		 Net income
in mil. USD$		 Total Assets
in mil. USD$		 Price per Share
in USD$
2005 5,256 1,662 26,058 7.61
2006 6,897 1,170 40,708 12.17
2007 9,343 787 55,597 16.74
2008 12,868 649 53,611 13.22
2009 12,082 454 61,902 9.33
2010 13,623 3,195 78,131 13.76
2011 15,921 3,674 91,030 16.72
2012 18,697 2,747 108,644 18.69
2013 20,830 3,844 112,745 22.42
2014 18,364 2,956 129,480 27.22
2015 19,913 2,207 139,514 32.47
2016 24,411 1,518 159,826 32.10
2017 40,786 1,317 192,720 38.17
2018[28] 56,771 3,584 256,281

See also

References
  1. "Brookfield Asset Management Reports 2017 Results" (PDF). Brookfield Asset Management. 31 December 2017. Retrieved 18 June 2018.
  2. Bruce Flatt (14 November 2019). "Letter to Shareholders" (PDF). Brookfield Asset Management. p. 2. Retrieved 9 December 2019.
  3. "Schedule 13D/A". U.S. Securities and Exchange Commission. Retrieved December 2, 2013.
  4. "Bloomberg Markets". Bloomberg.com. Retrieved 2017-05-01.
  5. "Global Presence". www.brookfieldproperties.com. Retrieved 2017-05-03.
  6. Kiesche, SA Editor Liz (2018-09-26). "Brookfield Asset Management sees excess cash ~$60B over 10 years". Seeking Alpha. Retrieved 2018-10-01.
  7. Regehr, Theodore. "Mackenzie, Sir William". Dictionary of Canadian Biography. Retrieved 8 December 2013.
  8. "Brascan Corporation History". International Directory of Company Histories. Retrieved 8 December 2013.
  9. "Industries: Business History of Utilities". Business History. Retrieved 8 December 2013.
  10. "Brazilian Traction Light and Power Company Ltd". Bloomberg L.P. Retrieved 4 December 2013.
  11. Won, Shirley (2005-09-16). "What's in a name? Plenty if it's Brascan". Globe and Mail. Archived from the original on 2016-04-22. Retrieved 2020-04-16.
  12. "Birch Mountain names receiver" Archived 11 April 2014 at the Wayback Machine,Calgary Herald, Canada, 7 November 2008 Retrieved 22 July 2012
  13. Gray, Jeff. "Squeezed-out Birch Mountain shareholders take on Brookfield",The Globe and Mail, Canada, 15 November 2011 Retrieved 22 July 2012
  14. McDonald v Brookfield Asset Management Inc Archived 23 September 2015 at the Wayback Machine, 2015 ABQB 281
  15. "In the Court of Appeal of Alberta/Citation: McDonald v Brookfield Asset Management Inc., 2016 ABCA 375" (PDF). 5 December 2016. Retrieved 1 June 2017.
  16. "Case Developments" (PDF). Brookfield Class Action Website. Retrieved 1 June 2015.
  17. "AIG, Brookfield End Litigation Over Financial Crisis". Insurance Journal. 2013-09-24. Retrieved 2020-05-28.
  18. Trevisani, Craig Karmin And Paulo (2013-03-08). "Brookfield Brazil Unit Draws SEC Scrutiny". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-05-12.
  19. "Brookfield's Brazil mall operator charged with bribery". Reuters. 2013-02-05. Retrieved 2020-05-12.
  20. "Foreign Corrupt Practices Act: Investigations Dataset". fcpa.stanford.edu. Retrieved 2020-05-12.
  21. Brewer, Reuben Gregg (16 September 2018). "Better Buy: Brookfield Infrastructure Partners L.P. vs. Brookfield Asset Management Inc". The Motley Fool. Retrieved 1 October 2018.
  22. Levin, Bess (12 February 2019). "Qatar Shocked, Shocked to Learn It Accidentally Bailed out Jared Kushner". Vanity Fair. Retrieved 21 January 2020.
  23. "Brookfield: inside the $500bn secretive investment firm". Financial Times. Retrieved 2020-05-12.
  24. Deveau, Scott (27 March 2019). "Brookfield Shuns 'Eat-What-You-Kill' in Private Equity Build-Out". Bloomberg. Archived from the original on 29 March 2019.
  25. "Brookfield to Acquire 62% of Oaktree Capital Management". NASDAQ.com. Retrieved 2019-03-14.
  26. "Brookfield CEO sees coronavirus market meltdown as 'manageable' | Financial Post". 2020-03-23. Retrieved 2020-05-12.
  27. "Reports & Filings". bam.brookfield.com. Retrieved 2018-11-07.
  28. "Brookfield Asset Management". Fortune. Retrieved 2019-08-02.
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