Brookfield Asset Management Raises $26 Billion and Continues Strong Capital Growth
Brookfield Asset Management, a Toronto-based alternative asset manager, announced that it raised $26 billion in the third quarter and is on track to bring in close to $150 billion in fresh capital this year, despite a challenging fundraising environment. The company's President, Connor Teskey, expressed optimism about the year ahead, stating that 2023 is shaping up to be an excellent year for capital raising, which will lead to strong earnings and dividend growth in the future. Notably, $11 billion of the capital raised came into Oaktree funds.
Impressive Financial Performance
Brookfield Asset Management reported distributable earnings of $568 million in the quarter, representing an 8% increase from the previous year. The firm's fee-bearing capital, which measures the money raised for third parties, remained steady at $440 billion. Brookfield has set a goal of reaching $1 trillion in fee-bearing capital by 2028.
Active Investment Firm
Despite a relatively quiet period for mergers and acquisitions, Brookfield has been one of the most active investment firms this year. The company has raised $61 billion since the beginning of the year, leaving it with $102 billion in available capital to deploy. Recent notable deals include the acquisition of assets from bankrupt data center firm Cyxtera Technologies Inc. for $775 million and the purchase of Dubai-based credit card processor Network International Holdings Plc for approximately £2.2 billion ($2.7 billion).
In conclusion, Brookfield Asset Management's strong capital growth and impressive financial performance demonstrate its resilience and ability to navigate challenging market conditions. The company's active investment approach and successful fundraising efforts position it well for future growth and investment opportunities.
Hot Take: Brookfield's Capital Growth - A Beacon for New Businesses?
Brookfield Asset Management's recent announcement of raising $26 billion in the third quarter and its projection to amass close to $150 billion in fresh capital this year could serve as a guiding light for new businesses. Despite a challenging fundraising environment, Brookfield's impressive capital growth and financial performance underscore the power of strategic planning and execution.
Capital Raising - The Key to Growth
The company's success in capital raising, as expressed by its President, Connor Teskey, could inspire new businesses to rethink their fundraising strategies. The fact that Brookfield is on track for a stellar capital raising year, which is expected to drive strong earnings and dividend growth, highlights the importance of aggressive and smart fundraising in business growth.
Active Investment - A Path to Success
Brookfield's active investment approach, despite a relatively quiet period for mergers and acquisitions, sets a precedent for new businesses. The company's ability to raise substantial capital and make notable deals, such as the acquisition of assets from Cyxtera Technologies and Network International Holdings, demonstrates the potential of an active investment strategy.
In conclusion, Brookfield Asset Management's success story offers valuable insights for new businesses, emphasizing the significance of robust capital growth, strategic fundraising, and active investment in navigating challenging market conditions and driving business growth.