Brookfield Asset Management

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Brookfield Asset Management Inc.
TypePublic
TSXBAM.A
NYSEBAM
EuronextBAMA
S&P/TSX 60 component
IndustryFinancial services
Founded1899; 122 years ago (1899)
FounderWilliam Mackenzie
Frederick Stark Pearson
HeadquartersBrookfield Place, ,
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

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]

History[edit]

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".[citation needed]

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]

By 2018, Brookfield's major public subsidiaries included Brookfield Infrastructure Partners, Brookfield Renewable Partners, Brookfield Property Partners, and Brookfield Business Partners.[12] In August 2018, Brookfield purchased Westinghouse Electric Company, a manufacturer of large nuclear reactors, out of bankruptcy for $4.6 billion.[13]

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.[14] On 31 July 2019 the sale of Vodafone New Zealand Limited to a consortium comprising Infratil Limited and Brookfield Asset Management Inc. was settled.[15]

In 2020, in response to the COVID-19 pandemic, Brookfield's CEO, Bruce Flatt, assessed that the economic fallout was "much more manageable" than previous meltdowns.[16]

Lawsuits and controversy[edit]

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 were transferred to Tricap Partners Ltd, which operates under the Hammerstone Corporation, a subsidiary of Brookfield Special Situations Group.[17] 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.[18] After five years of litigation the case was dismissed.[19] In May 2015, the plaintiffs filed a notice of appeal[20] which was also dismissed.[21]

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.[22]

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 São 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.[23][24] 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.[25]

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.[26][27]

In November 2020, it was revealed that Brookfield might be partnering with telecommunications giant Rogers Communications to introduce condominiums to the site of the Rogers Centre, halving the space available for sport. The original multi-purpose stadium and its land cost $570 million, significantly funded by taxpayers, yet was sold 15 years later to Rogers for just $25 million.[28]

Brookfield Residential[edit]

Brookfield Residential Properties Inc.
TypeSubsidiary
IndustryReal estate development
Construction
FoundedMarch 31, 2011; 9 years ago (2011-03-31)
Headquarters,
Canada
Key people
Alan Norris
(Chairman & CEO)
Total assets$5.7 billion[29]
Total equity$1.6 billion[30]
Number of employees
950 (2013)[31]
ParentBrookfield Asset Management
Websitebrookfieldresidential.com

Brookfield Residential Properties Inc. is a North American home builder and land developer that has its headquarters in Calgary, Alberta.[32] The company entitles and develops land to create master-planned communities, as well as building and selling lots to third-party developers and to their own home building division.[33] The company also participates in select strategic real estate opportunities, including infill projects, mixed use developments, and joint ventures.[33] Total assets were $4.5 billion as of June 30, 2018.[34]

History[edit]

Brookfield Residential was founded in 1956.

Brookfield Residential Properties Inc. was formed on March 31, 2011, upon the completion of a merger that combined Brookfield Homes|Brookfield Homes Corporation with the residential group of Brookfield Office Properties consisting of Carma Developers and Brookfield Homes|Brookfield Homes (Ontario) Limited.[35]

In March 2015, Brookfield Residential Properties announced the acquisition of Grand Haven Homes, an Austin, Texas homebuilder.[36]

Contributions from Brookfield Residential Properties, other home builders, and the Government of Alberta lead to new affordable housing for homeless Calgarians in 2015.[37]

On March 13, 2015, Brookfield Asset Management and Brookfield Residential Properties Inc. announced the closing of the going private transaction of Brookfield Residential as a result of the 32.4 million common shares of Brookfield Residential acquired by Brookfield Asset Management.[33]

In October 2015, Brookfield Residential purchased luxury builder Albi Homes.[38]

In 2017, Brookfield Residential Properties constructed a Passive house as a pilot project to educate its trade suppliers on construction methods to meet Passive House Institute standards.[39]

In February 2018, it acquired some of the assets of San Diego-based real estate company OliverMcMillan, a developer of large-scale mixed use properties.[40]

Brookfield Residential Properties was awarded the 2018 Lowest HERS Index Score Canadian Production Builder with a HERS Index Score of 38 as part of the 2018 RESNET Cross Border Home Builder Challenge, which helps promote the utilization of the HERS Index.[41]

On September 14, 2018, Calgary’s Seton YMCA was renamed Brookfield Residential YMCA at Seton after a 3.5M investment[42]

Finances[edit]

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.[43]

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[44] 56,771 3,584 256,281

See also[edit]

References[edit]

  1. ^ a b c d "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.[dead link]
  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. ^ a b c "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.[dead link]
  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. ^ 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.
  13. ^ 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.
  14. ^ "Brookfield to Acquire 62% of Oaktree Capital Management". NASDAQ.com. Retrieved 2019-03-14.
  15. ^ https://www.bellgully.com/about-us/firm-news/vodafone-group-plc-settles-vodafone-new-zealand-sale-to-consortium
  16. ^ "Brookfield CEO sees coronavirus market meltdown as 'manageable' | Financial Post". 2020-03-23. Retrieved 2020-05-12.
  17. ^ "Birch Mountain names receiver" Archived 11 April 2014 at the Wayback Machine,Calgary Herald, Canada, 7 November 2008 Retrieved 22 July 2012
  18. ^ Gray, Jeff. "Squeezed-out Birch Mountain shareholders take on Brookfield",The Globe and Mail, Canada, 15 November 2011 Retrieved 22 July 2012
  19. ^ McDonald v Brookfield Asset Management Inc Archived 23 September 2015 at the Wayback Machine, 2015 ABQB 281
  20. ^ "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.
  21. ^ "Case Developments" (PDF). Brookfield Class Action Website. Retrieved 1 June 2015.
  22. ^ "AIG, Brookfield End Litigation Over Financial Crisis". Insurance Journal. 2013-09-24. Retrieved 2020-05-28.
  23. ^ Trevisani, Craig Karmin And Paulo (2013-03-08). "Brookfield Brazil Unit Draws SEC Scrutiny". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-05-12.
  24. ^ "Brookfield's Brazil mall operator charged with bribery". Reuters. 2013-02-05. Retrieved 2020-05-12.
  25. ^ "Foreign Corrupt Practices Act: Investigations Dataset". fcpa.stanford.edu. Retrieved 2020-05-12.
  26. ^ Levin, Bess (12 February 2019). "Qatar Shocked, Shocked to Learn It Accidentally Bailed out Jared Kushner". Vanity Fair. Retrieved 21 January 2020.
  27. ^ "Brookfield: inside the $500bn secretive investment firm". Financial Times. Retrieved 2020-05-12.
  28. ^ Willis, Andrew (27 November 2020). "Rogers seeks to build new ballpark for the Toronto Blue Jays". The Globe and Mail. p. A1.
  29. ^ Toronto Star
  30. ^ Brookfield Residential 2018 2014 Annual Report
  31. ^ Brookfield Residential 2018 2013 Annual Report
  32. ^ Myke Thomas (April 4, 2011). "Merger makes Brookfield a real estate titan". Calgary Sun. Retrieved April 4, 2012.
  33. ^ a b c "Brookfield Asset Management Closes Going Private Transaction of Brookfield Residential" (Press release). GlobeNewswire. March 13, 2015.
  34. ^ Brookfield Residential 2018 Q2 Interim Report
  35. ^ [1], Brookfield Residential and Brookfield Homes report completion of merger and contribution. Calgary and Fairfax, 31 March 2011.
  36. ^ [2], Brookfield Residential acquires Grand Haven Homes in Central Texas, 2 March 2015.
  37. ^ "Collaboration leads to new affordable housing for homeless Calgarians" (Press release). GlobeNewswire. June 9, 2015.
  38. ^ [3], Brookfield Residential acquires luxury builder Albi Homes. Skapin, Josh, Calgary Herald, 16 October 2015.
  39. ^ [4], Passive House in a Box, Crowther, Sharon, The Globe and Mail, 7 September 2017.
  40. ^ Brookfield Residential Acquires Developer OliverMcMillan, John Nelson, Shopping Centre Business (The Latest News), Feb. 8, 2018.
  41. ^ [5], Brookfield Residential wins award at 2018 RESNET Cross Border Home Builder Challenge. 27 March 2018.
  42. ^ Rumbolt, Ryan. [6], Calgary’s Seton YMCA renamed Brookfield Residential YMCA at Seton after 3.5M investment. Calgary, 14 September 2018.
  43. ^ "Reports & Filings". bam.brookfield.com. Retrieved 2018-11-07.
  44. ^ "Brookfield Asset Management". Fortune. Retrieved 2019-08-02.

External links[edit]