Brookfield stock climbs, assets soar to nearly $511B

NEW YORK Brookfield Asset Management Inc. said its assets swelled to more than half a trillion dollars at the end of the third quarter and it had over US$65 billion in capital available to continue its spending spree.

Assets ballooned to almost US$511 billion after the Toronto-based alternative asset manager closed its purchase of a 61.2-per-cent stake in Oaktree Capital Group at the end of the quarter.

“All of this positions us well for the coming several years,” Bruce Flatt, Brookfield chief executive officer said in a letter to investors Thursday with its quarterly results. “As our cash generation continues to grow, we will need to decide if, when, and how to return capital to shareholders.”

The company’s next round of funds, including credit, should reach US$100 billion, he said.

Brookfield shares reached a record high of $77.23 in Toronto and have gained 45 per cent this year for a market value of about $79 billion.

Institutional investors are increasingly looking to alternative assets managers, like Brookfield, with interest rates low and potentially going lower when a global slowdown occurs, Flatt said.

Brookfield believes the world is in a new phase of global rates in a range of -2 per cent to two per cent for the next five to seven years, he said.

“This is particularly relevant for us and will positively impact on all asset values and businesses that generate cash,” he added.

Fee-related earnings from the company before performance fees increased 35 per cent year over year, excluding the impact of the Oaktree acquisition, which closed at quarter end, Brookfield said.