Brookfield mulls spinning off asset management unit at up to $100bn valuation

Canada’s Brookfield Asset Management Inc is considering spinning off its asset management unit at a valuation of $70bn to $100bn, according to a letter sent to shareholders on Thursday.

The move to separate the business, either in the public or private market, could open up growth options “that do not exist today”, Chief Executive Officer Bruce Flatt wrote in the letter.

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The Toronto-based company said it was “asset-heavy” compared to most of its peers and that dimmed its appeal to some shareholders. Brookfield manages over $690bn in assets across real estate, infrastructure, renewable power and transition, private equity and credit.

The newly spun-off company could also potentially attract interest from investors who do not want exposure to Brookfield’s other units, such as the reinsurance business launched last year, Flatt added.

Earlier on Thursday, the alternative asset manager reported a 74% jump in fourth-quarter profit applicable to common shareholders to $1.12 billion.

Source: Reuters

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