Brookfield Asset Management (BAM) is well positioned heading into its fundraising cycle, with its private equity and infrastructure flagships, along with 60 fundraising strategies driving an estimated $150 billion in fundraising in 2026, RBC Capital Markets said Monday.
Brookfield's $3.5 billion of debt outstanding is below its US alternative asset management peers on key metrics including market cap, assets under management, and debt to fee-related earnings multiple, the brokerage said.
RBC sees Brookfield's rising debt as manageable and a good form of capital optimization over the long-term. However, the interest expense compresses distributable earnings growth in the near-term relative to fee-related earnings growth, and RBC estimates that the two metrics will converge in 2027, according to the note.
The private credit environment is turning more favorable for lenders, which should generate incremental fee opportunities for Brookfield Asset Management, the brokerage said.
RBC kept an outperform rating on Brookfield Asset Management and lowered the price target to $65 from $74.
Price: $49.36, Change: $-0.40, Percent Change: -0.80%