Brookfield Asset Management Inc. (NYSE:BAM) Q3 2023 Earnings Call Transcript

Mario Saric: Okay, and then my second one, and I appreciate Connor, you mentioned it might be a little bit too early to talk about BIF 6. As you mentioned, BIF 5 is already 40% committed. I know that historically, you’ll look to start fundraising for a successor fund once I think you’ve hit the 70% to 75% kind of deployed committed area, which if the thoughts on peak interest rates and transaction activity accelerating materialize, I guess we wouldn’t be too far off of that level, presumably by the end of next year, kind of early to mid ’25. So is that a very simplistic way of thinking of it? So when you hit 70% to 75%, you would push forward with the next fund pending client demand, or do you like to see a specific amount of time elapsed between the funds?

So for example, if I look at Slide 30 of the supplemental on the core plus and facade, the vintage years are about three years spread out apart. So is it more of a time thing or is it simply hitting 70% to 75% and for client demand, you’ll start the next phase?

Bruce Flatt: Mario, your approach is not far off. I would say we take great pride in ensuring we do our jobs well and deploy the capital prudently, but take advantage, deploy the capital prudently, but capitalize on the opportunities that are available in the market during the investment period of a fund. So we do not get overly fussed if a fund comes back to market a little quicker because there were great opportunities to deploy the capital, or similarly, we don’t get too fussed if a fund comes back to market slightly slower because there weren’t great opportunities to deploy the capital. So it is much more predicated on the deployment levels in the previous vintage. The only thing I would say is your rough thresholds are bang on.

They’re very accurate, but they are not absolute guidelines. We take into account how much capital has been deployed as well as what is the ongoing pipeline for those funds such that we’re only raising capital for the next vintage that can be readily deployed for those clients and those partners quickly after they’ve committed it. So your metrics are right, your thinking is bang on. The only thing I would add is we also take into account the pipeline of investments as well as in terms of deciding when to go with the next vintage.

Operator: Thank you. This concludes the question-and-answer session. I’d now like to turn the call over to Jason Fooks for closing remarks.

Jason Fooks: Okay, great. We appreciate all of the interest and if you have any additional questions on today’s release, please feel free to contact me directly. Thank you everyone for joining us.

Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.