Tuesday, June 9, 2015

Seeking Alpha: Brookfield Asset Management's Fee Growth Bodes Well For The Future

If you want to torture yourself, try to build a detailed valuation model for Brookfield Asset Management (NYSE:BAM). I don't think there's much doubt that this firm is a premier fund manager in the world of real estate, power, infrastructure, and similar assets, but the process of estimating the cashflows from the publicly-traded LPs, the internally-managed funds, the directly-held assets, and the value of the private equity funds is challenging to say the least.

On a very simplistic level, I don't think it's entirely unreasonable to look at Brookfield Property Partners L.P. (NYSE:BPY), Brookfield Renewable Energy Partners L.P. (NYSE:BEP), and Brookfield Infrastructure Partners L.P. (NYSE:BIP), conclude that they are undervalued, and lean in the direction of assuming that Brookfield Asset Management is likewise undervalued. Going further and making some estimates and assumptions regarding the value of the asset management operations and unlisted assets, I believe that to be the case and that Brookfield is undervalued. What's more, I think the company is closing in on a point where its asset management operations are really about to take off and transform the perception of the company away from being a holding company and toward being an asset manager.

Follow this link for the full article:
Brookfield Asset Management's Fee Growth Bodes Well For The Future

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