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Brookfield weighs in on standalone asset management business

The firm’s fourth-quarter results published Thursday also showed net profit for common shareholders of $1.1 billion, up 74% year-over-year, with a dividend of 14 cents, up from 6 cents a year ago.

CEO Bruce Flatt’s letter in particular highlighted the strength of the asset management business, resulting in $6.3 billion in total distributable income, up nearly 50% year-over-year.

Along with $364 billion in fee-earning assets for Brookfield institutional investors, the firm has approximately $50 billion in equity capital that it has invested in the business over the decades.

According to the firm’s analysis, the equity value of the fee-earning portion of the business would be around $70-100 billion (and this does not include the $50 billion of equity capital invested in its business).

Flatt and his team are considering whether a separate company with such a valuation would be attractive to investors, especially those who don’t want to be exposed to growing parts of the broader company.

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