Brookfield's $50B deal spree
People familiar with these deals, has Brookfield been overpaying? Seems like they're all broadly marketed auctions, and they've been outbidding the market.
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I worked with them on one of their deals, they were fairly aggressive on a competitive process.My personal view is they are essentially rebalancing their overall portfolio away from infra / RE and may be somehow got it into their heads that it needs to happen quickly. Hence the acquisition spree …Most of these have been mature assets in established industries with poor growth but decent cash flows.. god knows how it will turn out in a recessionWud love to hear from someone working there
my guess is because they are in the process of spinning off the asset mgmt business, they are being pushed to deploy capital and start accruing mgmt fees
Brookfield is known to be a value investor, i.e. they would never pay high prices for assets, unless they can realize cost savings or synergies
away from infra?
this year they've agreed to buy Compass (5.5bn), Data4 (3.5bn), and Triton (13.4bn)
Rebalancing doesn essentially mean sit out on a sector
Well here's a data point... they own my apartment building. Current rent asking is > 15% below the peak and they are offering what amounts to ~60% off your first months rent.
Pain is coming.
Just anecdotal evidence, but have run against them in a not very competitive process in Europe and they paid full multiple on a very sell side adjusted ebitda. Doesn’t mean it will be a bad deal though
Network international?
If it is about Network International, they would realize substantial synergies with Magnati, so I guess paying full price in this case is still buying for value
No it was another transaction
None of these deals were made out of their PE team though, correct? They were all Infra or Real Estate from what I understood.
The Network International deal was done through the PE team
Only one transaction was done through their PE team and that was Network. The remaining as Analyst 1 pointed out are infra deals not PE.
It's too early to tell if they're overpaying in this market as a lot depends on cost of financing assumptions for their infra deals and are likely to be priced at infra returns and not PE returns so there's less upside to be had anyways.
Any updated views on Brookfield's corporate PE group? Understand it's not one of their core business lines (which are RE & infra/renewables). Whether it would be a good long-term seat, etc (NYC office).
They have been very busy in FIG
They've done 1 deal in FIG (Magnati with Network International as add-on)?
The transactions in which they acquired other asset managers (e.g. DWS' Secondaries) was for the wider Brookfield as a group, not fund specific
Given this is relatively a new post, I'll put my questions here in the comments. Can someone tell me the tiles at Brookfield?
I have seen: Analyst - Associate - Sr. Associate - VP - Director - Managing Director - Partner.
But in one of their job post, it mentions something like the "director role will report to VP". Can some one help clarify? And am I missing any levels above? Thanks,
No it’s analyst - associate - sr associate - VP - sr VP - MD - MP (each of these levels are typically 2-3yrs)
Directors are only in legal functions and mid/back office and they report to VPs
Curious whether anyone has any views on their Transition / Renewables platform.
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