Q4 2023 Brookfield Asset Management Earnings Call

February 7, 2024

[music].

Operator: Hello, and welcome to Brookfield Asset Management's fourth quarter 2023 conference call and webcast. At this time, all participants are in listen-only mode.

Hello, and welcome to Brookfield asset management's fourth quarter 2023 conference call and webcast.

At this time, all participants are in listen only mode.

After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will now need to press star one, one on your telephone.

To ask a question during the session you will now need to press star one one on your telephone.

I would now like to hand the conference over to our first speaker, Mr. Jason Fooks, Senior Vice President, Investor Relations. Please go ahead.

Jason Fooks: Thank you for joining us today for Brookfield Asset Management's earnings call. On the call today, we have Bruce Flatt, our Chief Executive Officer, Connor Teskey, our President, and Bahir Manios, our Chief Financial Officer.

Our call today, we have Bruce Flatt, our Chief Executive Officer Conor. Didn't hear. Our Chief Financial Officer.

Didn't hear. Our Chief Financial Officer.

Our Chief Financial Officer.

Bruce will start the call today with opening remarks, followed by Connor, who will talk about our growing fundraising capabilities. And finally, Bahir will discuss our financial and operating results for the business. After our formal comments, we'll turn the call over to the operator and take any analyst questions.

He will discuss our financial and operating results for the business.

After our formal comments, we'll turn the call over to the operator and take any.

Questions.

In order to accommodate all those who want to ask questions, we ask that you refrain from asking more than two questions at one time. If you guys should have additional questions, please rejoin the queue, I'll be happy to take additional questions at the end if time permits.

You should have additional questions. Please rejoin the queue there'll be happy to take additional questions at the end.

Speaker Change: Time permits.

Before we begin, I'd like to remind you that today's comments, including in responding to questions and in discussing new initiatives and our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S Securities law.

These statements reflect predictions of future events and trends and do not relate to historic events. They're subject to known and unknown risks and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S and the information available on our website.

Subject to known and unknown risks and future events and results may differ materially from such statements for further information on these risks and their potential impacts on our company. Please see our filings with the securities regulators in Canada, and the U S and the information available on our website.

And with that, I'll turn the call over to Bruce.

Yeah.

Bruce Flatt: Thank you Jason and welcome to everyone on the call. Our results were strong in the fourth quarter - our best quarter in an overall excellent first year for Brookfield Asset Management. In total, we raised 140 billion of capital, which includes 93 billion raised over the past year and $50 billion coming from the pending close of the [inaudible] insurance account with Brookfield Insurance. We were successful fundraising across our flagship funds, including new records for our infrastructure and private equity franchises.

Our results were strong in the fourth quarter. Our best quarter in an overall excellent first year for Brookfield asset management. In total we raised 140 billion of capital, which includes 93 billion raised over the past year and $50 billion coming from the pending close of the insurance. Insurance account with Brookfield reinsurance. We were successful fundraising across our flagship funds, including New records for our infrastructure and private equity franchises.

Our best quarter in an overall excellent first year for Brookfield asset management. In total we raised 140 billion of capital, which includes 93 billion raised over the past year and $50 billion coming from the pending close of the insurance. Insurance account with Brookfield reinsurance. We were successful fundraising across our flagship funds, including New records for our infrastructure and private equity franchises.

In total we raised 140 billion of capital, which includes 93 billion raised over the past year and $50 billion coming from the pending close of the insurance. Insurance account with Brookfield reinsurance. We were successful fundraising across our flagship funds, including New records for our infrastructure and private equity franchises.

Insurance account with Brookfield reinsurance. We were successful fundraising across our flagship funds, including New records for our infrastructure and private equity franchises.

We were successful fundraising across our flagship funds, including New records for our infrastructure and private equity franchises.

This past year, we fundraised across a broad set of complementary strategies and with an increasingly diversified set of global investors. We also launched a number of new funds, most notably, Oak Tree's Lending Partners Fund, which shows promise in evolving to be a six flagship series for us. Our goal is to always have a focus on providing exceptional value to our clients. Our goal has always been to generate strong risk adjusted returns by acquiring assets for value,

And with an increasingly diversified set of global investors. We also launched a number of new funds, most notably oak trees lending partners fund, which shows promise involving six flagship series for us. Our goal is to always have a focus on providing exceptional value to our clients. Our goal has always been to generate strong risk adjusted returns. Wiring assets for value.

We also launched a number of new funds, most notably oak trees lending partners fund, which shows promise involving six flagship series for us. Our goal is to always have a focus on providing exceptional value to our clients. Our goal has always been to generate strong risk adjusted returns. Wiring assets for value.

Our goal is to always have a focus on providing exceptional value to our clients. Our goal has always been to generate strong risk adjusted returns. Wiring assets for value.

Our goal is to always have a focus on providing exceptional value to our clients. Our goal has always been to generate strong risk adjusted returns by acquiring assets for value, leveraging our operational capabilities to grow cash flows and compounding capital over the long term. By staying ahead of market trends and continuously innovating, we've been able to help our clients achieve their investment objectives in ways that truly matter to them.

Speaker Change: Our goal has always been to generate strong risk adjusted returns. Wiring assets for value.

Wiring assets for value.

leveraging our operational capabilities to grow cash flows and compounding capital over the long term. By staying ahead of market trends and continuously innovating, we've been able to help our clients achieve their investment objectives in ways that truly matter to them. At the same time, this past year has been about making the necessary investments in our platform to position us for long term success and growth. We've been expanding our global fundraising organization as well as building our capabilities within insurance and private wealth.

By staying ahead of market trends and continuously innovating. We've been able to help our clients achieve their investment objectives in ways that truly matter to them. At the same time this past year has been about making the necessary investments in our platform to position us for long term success and growth.

We've been able to help our clients achieve their investment objectives in ways that truly matter to them. At the same time this past year has been about making the necessary investments in our platform to position us for long term success and growth.

At the same time, this past year has been about making the necessary investments in our platform to position us for long term success and growth. We've been expanding our global fundraising organization as well as building our capabilities within insurance and private wealth. with the expectation that they will grow to become meaningful contributors to our annual fund raising in the near term.

At the same time this past year has been about making the necessary investments in our platform to position us for long term success and growth.

We've been expanding our global fundraising organization as well as building our capabilities with an insurance and private wealth.

with the expectation that they will grow to become meaningful contributors to our annual fund raising in the near term. Fee related earnings grew 6% to $2.2 billion and distributable earnings grew 7% also to $2.2 billion. The significant capital we raised over the past year sets us up for strong growth in 2024. And with much of the investment in our platform complete, our cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean a strong year for FRE and DE growth.

with the expectation that they will grow to become meaningful contributors to our annual fund raising in the near term.

Our annual fund raising in the near term. Fee related earnings grew 6% to $2 2 billion and distributable earnings grew 7% also to $2 2 billion. Significant capital, we raised over the past year sets us up for strong growth in 2024. And with much of the investment in our platform complete. Cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

Fee related earnings grew 6% to $2 2 billion and distributable earnings grew 7% also to $2 2 billion. Significant capital, we raised over the past year sets us up for strong growth in 2024. And with much of the investment in our platform complete. Cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

Fee related earnings grew 6% to $2.2 billion and distributable earnings grew 7% also to $2.2 billion. The significant capital we raised over the past year sets us up for strong growth in 2024. And with much of the investment in our platform complete, our cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean a strong year for FRE and DE growth.

Significant capital, we raised over the past year sets us up for strong growth in 2024. And with much of the investment in our platform complete. Cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

And with much of the investment in our platform complete. Cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

Cost growth should moderate. The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

The combination of faster revenue growth and slower cost growth should mean, a strong year for FRE and D E growth.

More broadly, it appears that inflation has tempered, interest rates have peaked, and the Fed soon will begin easing rates. Markets struggle in the face of uncertainty and these actions signal improves stability, resulting in increased investor confidence in pricing risk and therefore enhanced liquidity to capital markets. Transaction volume should pick up as well, which will enable more managers, including us to monetize investments, return capital to partners and in turn enable those partners to reinvest in private funds for what should be an excellent environment for investing. We are going into this year with more than $100 billion of dry powder across our businesses, despite investing over $50 billion last year, one of our most active years of investing.

Interest rates have peaked. And the fed soon will begin easing rates. Market struggle in the face of uncertainty and these actions signal improves stability, resulting in increased investor confidence confidence in pricing risk and therefore enhanced liquidity to capital markets.

And the fed soon will begin easing rates. Market struggle in the face of uncertainty and these actions signal improves stability, resulting in increased investor confidence confidence in pricing risk and therefore enhanced liquidity to capital markets.

Market struggle in the face of uncertainty and these actions signal improves stability, resulting in increased investor confidence confidence in pricing risk and therefore enhanced liquidity to capital markets.

Transaction volume should pick up as well, which will enable more managers, including us to monetize investments, return capital to partners and in turn enable those partners to reinvest in private funds for what should be an excellent environment for investing. We are going into this year with more than $100 billion of dry powder across our businesses, despite investing over $50 billion last year, one of our most active years of investing.

Transaction volume should pick up as well. Which will enable more managers, including us.

Which will enable more managers, including us.

To monetize investments and return capital to partners and in turn enable those partners to reinvest in private funds for what should be an excellent environment for investing. We are going into this year with more than $100 billion of dry powder across our businesses.

We are going into this year with more than $100 billion of dry powder across our businesses.

We believe the environment will lead to continued consolidation in the industry. This is a theme you've heard us talk about a lot before. We participated in this consolidation five years ago with our Oaktree partnership and we continue to look at strategic opportunities to further broaden and strengthen our franchise. This tend towards consolidation is especially true for areas of the alternative asset management space that are most in favor by investors and should attract more capital. Infrastructure, renewable power, and energy transition are expected to be among the fastest growing alternative asset sectors for a very good reason. Investors continue to allocate to the space because these are assets that can deliver four things all investors see: market growth, principal safety and uncertain time, inflation protected cash flows, and long term capital appreciation.

This is a theme you've heard us talk about a lot before. We participated in this consolidation five years ago with our Oaktree partnership and. And we continue to look at strategic opportunities to further broaden and strengthen our franchise. This tend towards consolidation is especially true for areas of the alternative asset management space that are most in favor by investors and should attract more capital. Infrastructure renewable power and energy transition are expected to be on that.

We participated in this consolidation five years ago with our Oaktree partnership and. And we continue to look at strategic opportunities to further broaden and strengthen our franchise. This tend towards consolidation is especially true for areas of the alternative asset management space that are most in favor by investors and should attract more capital. Infrastructure renewable power and energy transition are expected to be on that.

And we continue to look at strategic opportunities to further broaden and strengthen our franchise. This tend towards consolidation is especially true for areas of the alternative asset management space that are most in favor by investors and should attract more capital. Infrastructure renewable power and energy transition are expected to be on that.

Speaker Change: This tend towards consolidation is especially true for areas of the alternative asset management space that are most in favor by investors and should attract more capital. Infrastructure renewable power and energy transition are expected to be on that.

Infrastructure renewable power and energy transition are expected to be on that.

The fastest growing alternative asset sectors for. For very good reason. Investors continue to allocate to the space because these are assets that can deliver four things.

For very good reason. Investors continue to allocate to the space because these are assets that can deliver four things.

Investors continue to allocate to the space because these are assets that can deliver four things.

all investors see: market growth, principal safety and uncertain time, inflation protected cash flows, and long term capital appreciation. We were an early mover into these areas after we identified that decarbonization, deglobalization, and digitalization were megatrends that were shaping the global economy. Governments, corporates, and other stakeholders have made commitments to net zero targets and are grappling with energy, security, supply chain resiliency and meeting the exponentially growing demand for data.

all investors see: market growth, principal safety and uncertain time, inflation protected cash flows, and long term capital appreciation.

Market growth. Principal safety and uncertain time. Inflation protected cash flows. Long term capital appreciation. We were an early mover into these areas after we identified the decarbonization. Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

Principal safety and uncertain time. Inflation protected cash flows. Long term capital appreciation. We were an early mover into these areas after we identified the decarbonization. Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

Inflation protected cash flows. Long term capital appreciation. We were an early mover into these areas after we identified the decarbonization. Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

Speaker Change: Long term capital appreciation. We were an early mover into these areas after we identified the decarbonization. Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

We were an early mover into these areas after we identified that decarbonization, deglobalization, and digitalization were megatrends that were shaping the global economy. Governments, corporates, and other stakeholders have made commitments to net zero targets and are grappling with energy, security, supply chain resiliency and meeting the exponentially growing demand for data. These challenges will require trillions of capital investment. And our infrastructure renewable power and energy transition businesses are well positioned to deliver solutions.

We were an early mover into these areas after we identified the decarbonization. Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

Globalization, and digitalization, where megatrends that we're shaping the global economy. Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

Governments corporates and other stakeholders have made commitments net zero targets and are grappling with energy security supply chain resiliency and meeting the exponentially growing demand for data.

These challenges will require trillions of capital investment. And our infrastructure renewable power and energy transition businesses are well positioned to deliver solutions. Today, we manage nearly $300 billion of assets across these businesses, making us the largest and most experienced in this space. We've used this first mover advantage to build critical expertise, deep relationships and we use our scale and source proprietary deals to pursue investment opportunities that are either too large or too difficult for most investors to execute. We believe that our scale diversity reputation and strong track record distinguish us in these areas and we continue to invest in our franchise and strengthen our brand and we believe we will come out of this period of consolidation even more dominant than we entered.

These challenges will require trillions of capital investment. And our infrastructure renewable power and energy transition businesses are well positioned to deliver solutions.

And our infrastructure renewable power and energy transition businesses are well positioned. To deliver solutions. Today, we manage nearly $300 billion of assets across these businesses, making us the largest and most experienced in this space. We've used this first mover advantage to build critical expertise deep relationships and. And we use our scale and source proprietary deals to pursue investment. Opportunities that are either too large or too difficult for most investors to execute.

Today, we manage nearly $300 billion of assets across these businesses, making us the largest and most experienced in this space. We've used this first mover advantage to build critical expertise, deep relationships and we use our scale and source proprietary deals to pursue investment opportunities that are either too large or too difficult for most investors to execute. We believe that our scale diversity reputation and strong track record distinguish us in these areas and we continue to invest in our franchise and strengthen our brand and we believe we will come out of this period of consolidation even more dominant than we entered.

To deliver solutions. Today, we manage nearly $300 billion of assets across these businesses, making us the largest and most experienced in this space. We've used this first mover advantage to build critical expertise deep relationships and. And we use our scale and source proprietary deals to pursue investment. Opportunities that are either too large or too difficult for most investors to execute.

We've used this first mover advantage to build critical expertise deep relationships and. And we use our scale and source proprietary deals to pursue investment. Opportunities that are either too large or too difficult for most investors to execute.

Speaker Change: And we use our scale and source proprietary deals to pursue investment. Opportunities that are either too large or too difficult for most investors to execute.

Opportunities that are either too large or too difficult for most investors to execute.

We believe that our scale diversity reputation and strong track record distinguish us in these areas and we continue to invest in our franchise and strengthen our brand and. And we believe we will come out of this period of consolidation even more dominant than we entered.

Speaker Change: And we believe we will come out of this period of consolidation even more dominant than we entered.

With that overview, let me turn it over to Connor speak about the capabilities and strategy of our fundraising platform.

Connor Teskey: Thank you Bruce. Next, we will speak to our operations and how we have scaled our business, expanded the breadth of our product offerings, and enhanced our capabilities across capital raising channels.

Next we will speak to our operations and how we have scaled our business expanded the breadth of our product offerings and enhanced our capabilities across capital raising channels.

Today, our diversity across asset classes, product strategies, and fundraising sources enables us to raise and deploy capital more consistently year to year and in different market environments. This is increasingly a key differentiator in our franchise.

This past year is a good example of how our partnership approach and investment track record have allowed us to raise larger flagship funds and deliver on our ambitious capital raising targets.

At the same time, we have been expanding and diversifying our suite of complementary funds. Today, we have over 100 active funds across our business that cover a wide range of asset classes, products, and strategies, many of which we are fundraising for at any given time. In addition, we've also been building out our fundraising capabilities across an increasing number of channels.

Today, we have over 100 active funds across our business. They cover a wide range of asset classes products and strategies many of which we are fundraising for at any given time.

Speaker Change: In addition, we've also been building out our fundraising capabilities across an increasing number of channels.

In addition, we've also been building out our fundraising capabilities across an increasing number of channels. The result is that we can expect to raise approximately $75 billion annually separate and apart from our flagship funds, which are typically raised every few years. That should allow us to annually raised $90 billion to $100 billion on average at this point in time. Let us breakdown that figure a little bit.

The result is that we can expect to raise approximately $75 billion annually separate and apart from our flagship funds, which are typically raised every few years. That should allow us to annually raised $90 billion to $100 billion on average at this point in time. Let us breakdown that figure a little bit.

It should allow us to annually raised $90 billion to $100 billion on average at this point in time. Let us breakdown that figure a little bit.

Let us breakdown that figure a little bit.

While most of our fundraising will continue to be driven by our institutional sales team and by our public affiliates, we are continuing to grow other channels to augment and diversify our fundraising. A good example of this is the growth of our insurance solutions channel.

A good example. <unk>. This is the growth of our insurance solutions channel.

<unk>. This is the growth of our insurance solutions channel.

As Bruce mentioned, we expect the [inaudible] acquisition of ADL to close shortly, which will bring our fee bearing insurance capital up to more than $80 billion from approximately $35 billion today. At the same time, Brookfield reinsurance will become one of the largest writers of annuities in the United States. And by employing the same operational enhancements utilized following the acquisition of American National a few years ago, we expect to meaningfully grow ADL's pace of annuity underwriting. And over time, we should be able to organically raise $15 billion to $20 billion of insurance capital annually. And that would be independent of any additional insurance acquisitions that [inaudible] may do.

At the same time Brookfield reinsurance will become one of the largest writers of annuities in the United States. And by employing the same operational enhancements utilized following the acquisition of American National a few years ago.

And by employing the same operational enhancements utilized following the acquisition of American National a few years ago.

we expect to meaningfully grow ADL's pace of annuity underwriting. And over time, we should be able to organically raise $15 billion to $20 billion of insurance capital annually. And that would be independent of any additional insurance acquisitions that [inaudible] may do.

And over time, we should be able to organically raised $15 billion to $20 billion of insurance capital annually. And that would be independent of any additional insurance acquisitions that <unk> may do.

And that would be independent of any additional insurance acquisitions that <unk> may do.

We have also been building Brookfield Oaktree Wealth Solutions or BOWS which is our private wealth business. We have approximately 150 dedicated employees across 10 countries to meet the growing needs for alternative assets in the private wealth market. We have partnered with more than 50 wealth groups worldwide in delivering institutional quality investment strategies to their clients. We currently have five perpetual strategies, specifically developed for private wealth investors across credit, real estate, and more recently infrastructure.

We have approximately 150 dedicated employees across 10 countries to meet the growing needs for alternative assets in the private wealth market. We have partnered with more than 50 wealth groups worldwide in delivering institutional quality investment strategies to their clients. We currently have five perpetual strategies, specifically developed for private wealth investors across credit real estate and more recently infrastructure.

We have partnered with more than 50 wealth groups worldwide in delivering institutional quality investment strategies to their clients. We currently have five perpetual strategies, specifically developed for private wealth investors across credit real estate and more recently infrastructure.

We currently have five perpetual strategies, specifically developed for private wealth investors across credit real estate and more recently infrastructure.

At the beginning of last year, we launched the Brookfield Infrastructure Income Fund to investors in Asia Pacific and Europe. And recently, we launched the strategy in the United States. The strategy has been very well received and we've raised almost $2 billion over the past year. In total, we have raised approximately $7 billion of capital through our private wealth channel last year and over time, we expect this channel to grow to $12 to $15 billion of fundraising annually.

The strategy has been very well received and we've raised almost $2 billion over the past year in. In total we have raised approximately $7 billion of capital through our private wealth channel last year and over time, we expect this channel to grow to 12% to $15 billion. Fundraising annually.

In total we have raised approximately $7 billion of capital through our private wealth channel last year and over time, we expect this channel to grow to 12% to $15 billion. Fundraising annually.

Fundraising annually.

Switching gears now to product development. Core to our success has been our adaptability to the ever-changing market environment, and our focus on adding new products and solutions for our clients. The majority of our new products come organically from in-house product development. Our product development function works across our businesses and investor segments to leverage our investment expertise and global presence to develop new solutions to meet our clients' investment objectives. This serves as an important competitive advantage, allowing us to differentiate our platform from our competitors. It enhances our relationships with clients because we can create tailored strategies to meet their needs and proactively adjust to ever-changing market conditions. As a result, we expect the role of new product development to be an even bigger driver of our business going forward.

Core to our success has been our adaptability to the ever changing market environment, and our focus on adding new products and solutions for our clients. The majority of our new products come organically from in house product development. Our product development function works across our businesses and investor segments to leverage our investment expertise and global presence to develop new solutions to meet our clients' investment objectives.

The majority of our new products come organically from in house product development. Our product development function works across our businesses and investor segments to leverage our investment expertise and global presence to develop new solutions to meet our clients' investment objectives.

Our product development function works across our businesses and investor segments to leverage our investment expertise and global presence to develop new solutions to meet our clients' investment objectives.

This serves as an important competitive advantage, allowing us to differentiate our platform from our competitors.

It enhances our relationships with clients because we can create tailored strategies to meet their needs and proactively adjust to ever changing market conditions. As a result, we expect the role of new product development to be an even bigger driver of our business going forward.

As a result, we expect the role of new product development to be an even bigger driver of our business going forward.

Some of the new products and strategies we've recently announced include a 10 billion euro private investment grade debt fund with the purpose of originating and distributing high quality private credit investments. This initial fund will launch with $2.5 billion euros of seed funding in part from Brookfield reinsurance.

Then bill 10 billion Euro private investment grade debt fund with the purpose of originating and distributing high quality private credit investments.

This initial fund will launch with $2 5 billion euros of seed funding in part from Brookfield reinsurance.

Another example is a joint venture with Sequoia Heritage called Pine Grove, which will focus on acquiring secondary funds in the venture capital and technology sectors. Pine Grove is raising an inaugural funded in the first half of 2024 with 500 million in seed capital collectively from Brookfield and Sequoia. We also continue to leverage our deep relationships with investors in the Middle East and are launching a Middle East private equity fund this year as well. This region continues to be one of the fastest growing in the world and we have established ourselves as the best positioned sponsor in the market. Also, with our private equity franchise, we will be launching a newly formed financial infrastructure platform. This strategy focuses on opportunities in digital payments and services, a key pillar in the digitalization of the global economy over the coming years.

Pine Grove is raising an inaugural funded in the first half of 2024 with 500 million in seed capital collectively from Brookfield and Sequoia. We also continue to leverage our deep relationships with investors in the middle East and are launching a middle East private equity fund this year as well. This region continues to be one of the fastest growing in the world and we have established ourselves as the best positioned sponsor in the market.

We also continue to leverage our deep relationships with investors in the middle East and are launching a middle East private equity fund this year as well. This region continues to be one of the fastest growing in the world and we have established ourselves as the best positioned sponsor in the market.

This region continues to be one of the fastest growing in the world and we have established ourselves as the best positioned sponsor in the market.

Also with our private equity franchise, we will be launching a newly formed financial infrastructure platform. This strategy focus on focuses on opportunities in digital payments and services a key pillar in the digitalization of the global economy over the coming years.

This strategy focus on focuses on opportunities in digital payments and services a key pillar in the digitalization of the global economy over the coming years.

Lastly, we also recently announced the launch of our multibillion dollar catalytic transition fund, CTF, in partnership with UAE's Altera. Altera committed $1 billion of seed capital into this fund, which will have a differentiated and focused mandate on raising and deploying capital exclusively in emerging and developing markets with a focus on energy transition, industrial decarbonization, sustainable living and climate technologies.

Alterra committed $1 billion of seed capital into this fund, which will have a differentiated and focused mandate on raising and deploying capital exclusively in emerging and developing markets with a focus on energy transition industrial decarbonization sustainable living and climate technologies.

In addition to product development, at the same time, we always seek to strategically and selectively invest in and partner with managers that have capabilities that are complementary to our platform. We do so when investing can be done accretively and when building a product organically would take too long. This can be done at scale like we did with Oaktree in credit. And over the past five years, we've partnered in many ways, including building our private wealth business scaling our insurance business and sharing valuable insights across our portfolios. However, we also selectively make smaller tactical investments in managers that we believe can help scale and are complementary to our business.

Okay. In addition to product development at.

In addition to product development at.

At the same time, we always seek to strategically and selectively invest in and partner with managers that have capabilities that are complementary to our platform.

We do so when investing can be done accretively and when building a product organically would take too long.

This can be done at scale like we did with Oaktree in credit.

And over the past five years, we've partnered in many ways, including building, our private wealth business scaling our insurance business and sharing valuable insights across our portfolios.

However, we also selectively make smaller tactical investments in managers that we believe can help scale and are complementary to our business.

One example of the latter approach is our 50% interest in LCM, a European based private credit alternative asset manager. Since we began our partnership with the firm, LCM has tripled the size of their main fund in addition to growing across their platform. We think there is an opportunity to do more of these tactical acquisitions. These will be managers that can be assisted by the overall scale of our business and capital and managers whose growth can be accelerated when brought into the Brookfield ecosystem. Most will benefit from our insurance assets under management and from our client relationships. In addition, we can provide these managers with the proprietary data insights that we gather from our more than $900 billion of assets under management.

Since we began our partnership with the firm LCM has tripled the size of their main fund in addition to growing across their platform. We think there is an opportunity to do more of these tactical acquisitions. These will be managers that can be assisted by the overall scale of our business and capital and managers, whose growth can be accelerated when brought into the Brookfield ecosystem.

We think there is an opportunity to do more of these tactical acquisitions. These will be managers that can be assisted by the overall scale of our business and capital and managers, whose growth can be accelerated when brought into the Brookfield ecosystem.

Most will benefit from our insurance assets under management. From our client relationships.

From our client relationships.

In addition, we can provide these managers with the proprietary data insights that we gather from our more than $900 billion of assets under management. In order to manage our growing private credit capabilities across Brookfield, notably Oaktree, LCM, our Stock Gen partnership, and our insurance investment strategies, we recently placed all of our credit strategies under a new credit group, which is led by Craig Noble.

In addition, we can provide these managers with the proprietary data insights that we gather from our more than $900 billion of assets under management.

In order to manage our growing private credit capabilities across Brookfield, notably Oaktree, LCM, our Stock Gen partnership, and our insurance investment strategies, we recently placed all of our credit strategies under a new credit group, which is led by Craig Noble. Craig is a Brookfield veteran. He's been with us for approximately 20 years and was most recently responsible for our institutional and wealth fund raising.

In order to manage our growing private credit capability is across Brookfield, notably Oaktree LCM, our sock Gen partnership and our insurance investment strategies. We recently placed all of our credit strategies under our new credit group, which is led by Craig Noble.

Craig is a Brookfield veteran. He's been with us for approximately 20 years and was most recently responsible for our institutional and wealth fund raising. Bringing all of our credit strategies together with our newly formed credit group, allows us to work effectively across our credit teams, provide excellent returns, and maximize our ability to create value for our clients. We are confident that credit will be a meaningful driver of growth over the next decade, given the industry tailwinds and our collective focus. This adjustment will help us achieve that.

Craig is a Brookfield veteran. He's been with us for approximately 20 years and was most recently responsible for our institutional and wealth fund raising.

Bringing all of our credit strategies together with our newly formed credit group, allows us to work effectively across our credit teams, provide excellent returns, and maximize our ability to create value for our clients. We are confident that credit will be a meaningful driver of growth over the next decade, given the industry tailwinds and our collective focus. This adjustment will help us achieve that.

Prior bringing all of our credit strategies together with our newly formed credit group allows us to work effectively across our credit teams provide excellent returns and maximize our ability to create value for our clients.

We are confident that credit will be a meaningful driver of <unk> growth over the next decade, given the industry tailwind and our collective focus. This adjustment will help us achieve that.

This adjustment will help us achieve that.

We will now turn the call over to Bahir to go through our financial and operating results for the quarter.

Bahir Manios: Thank you Connor and good morning everyone. So for this morning's call, I'll focus my remarks on three areas, starting with a discussion of our financial results for 2023. I will then do a bit of a recap on our capital raising efforts for the year and then conclude by touching on the outlook for 2024.

So for this morning's call I'll focus my remarks on three areas, starting with a discussion of our financial results for 2023.

I will then do a bit of a recap on our capital raising efforts for the year and then conclude by touching on the outlook for 2024.

So first just on financial results, fee related earnings or FRE for 2023 were $2.2 billion, up 6% from the prior year. This increase was primarily the result of capital raised for the various flagship funds, which we raised during the year, including our fifth infrastructure fund and six private equity fund as well as capital that we deployed within our various credit and complementary funds, where we earned fees on invested capital. These increases were somewhat offset by lower catch up fees and transaction fees, lower fees associated with our permanent capital vehicles and increased costs as we scaled up the business considerably in 2023. Distributable earnings for the year were also $2.2 billion, up 7% compared to 2022. This increase was primarily attributable to the increase that we had in our FRE.

This increase was primarily the result of capital raised for the various flagship funds. Which we raised during the year, including our fifth infrastructure fund and six private equity fund as. As well as capital that we deployed within our various credit and complementary funds, where we earned fees on invested capital.

Which we raised during the year, including our fifth infrastructure fund and six private equity fund as. As well as capital that we deployed within our various credit and complementary funds, where we earned fees on invested capital.

As well as capital that we deployed within our various credit and complementary funds, where we earned fees on invested capital.

These increases were somewhat offset by lower catch up fees and transaction fees. Lower fees associated with our permanent capital vehicles and increased costs as we scaled up the business considerably in 2023. Distributable earnings for the year were also $2 2 billion up 7% compared to 2022. This.

Lower fees associated with our permanent capital vehicles and increased costs as we scaled up the business considerably in 2023. Distributable earnings for the year were also $2 2 billion up 7% compared to 2022. This.

Distributable earnings for the year were also $2 2 billion up 7% compared to 2022. This.

This increase was primarily attributable to the increase that we had in our FRE.

We ended 2023 with 916 billion of AUM, our assets under management, up 126 billion or 16% from the end of 2022. Our fee bearing capital currently sits at 457 billion, up 39 billion and 9% compared to the prior year and will increase to over $500 billion with the shortly anticipated AEL deal. Our fee bearing capital benefited from strong inflows as well as capital deployed during the year in addition to higher valuations on our permanent capital vehicles. This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments, recorded over $30 billion of monetization across the business, and ended the year with $107 billion of uncalled fund commitments.

Our assets under management up 126 billion or 16% from the end of 2022. Our fee bearing capital currently sits at 457 billion up 39 billion and 9% compared to the prior year and will increase to over $500 billion with the shortly anticipated ABL deal. Our fee bearing capital benefited from strong inflows as well as capital deployed during the year. In addition to higher valuations on our permanent capital vehicles. This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments recorded over $30 billion of monetization across the business and ended the year with $107 billion of Uncalled fund commitments.

Our fee bearing capital currently sits at 457 billion up 39 billion and 9% compared to the prior year and will increase to over $500 billion with the shortly anticipated ABL deal. Our fee bearing capital benefited from strong inflows as well as capital deployed during the year. In addition to higher valuations on our permanent capital vehicles. This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments recorded over $30 billion of monetization across the business and ended the year with $107 billion of Uncalled fund commitments.

Our fee bearing capital benefited from strong inflows as well as capital deployed during the year in addition to higher valuations on our permanent capital vehicles. This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments, recorded over $30 billion of monetization across the business, and ended the year with $107 billion of uncalled fund commitments.

Our fee bearing capital benefited from strong inflows as well as capital deployed during the year. In addition to higher valuations on our permanent capital vehicles. This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments recorded over $30 billion of monetization across the business and ended the year with $107 billion of Uncalled fund commitments.

This was somewhat offset by capital that we returned to our clients during the year. Also during the year, we deployed $58 billion of capital in investments recorded over $30 billion of monetization across the business and ended the year with $107 billion of Uncalled fund commitments.

Also during the year, we deployed $58 billion of capital in investments recorded over $30 billion of monetization across the business and ended the year with $107 billion of Uncalled fund commitments.

Now turning to fundraising and as Bruce noted in his remarks, we had inflows of $93 billion over the past year, which will soon be over 140 billion once the AEL transaction closes and we get the approximately $50 billion of assets that come with this transaction that we will be managing. The $93 billion of inflows were spread across approximately 50 strategies as well as 13 billion of inflows coming from Brookfield's reinsurance business. We have held several large fund closes since our last earnings announcements raising $33 billion of capital. The most significant fundraising updates in deal activity since the beginning of the fourth quarter include

We will be managing. The $93 billion of inflows were spread across approximately 50 strategies as well as <unk> 13 billion of inflows coming from Brookfield reinsurance business. We have held several large funds fund closes since our last earnings announcements raising $33 billion of capital. The most significant fundraising updates in deal activity since the beginning of the fourth quarter include.

The $93 billion of inflows were spread across approximately 50 strategies as well as <unk> 13 billion of inflows coming from Brookfield reinsurance business. We have held several large funds fund closes since our last earnings announcements raising $33 billion of capital. The most significant fundraising updates in deal activity since the beginning of the fourth quarter include.

We have held several large funds fund closes since our last earnings announcements raising $33 billion of capital. The most significant fundraising updates in deal activity since the beginning of the fourth quarter include.

The most significant fundraising updates in deal activity since the beginning of the fourth quarter include first within our infrastructure business where we have two updates in December, we held the final close for the fifth vintage of our flagship global infrastructure fund, bringing the total strategy size to $30 billion. With approximately 200 investors committed to the fund, this fifth vintage is 40% larger than the predecessor fund. We are now approximately 40% deployed across six large scale assets and the momentum on the capital deployment front is very strong.

The most significant fundraising updates in deal activity since the beginning of the fourth quarter include.

first within our infrastructure business where we have two updates in December, we held the final close for the fifth vintage of our flagship global infrastructure fund, bringing the total strategy size to $30 billion. With approximately 200 investors committed to the fund, this fifth vintage is 40% larger than the predecessor fund. We are now approximately 40% deployed across six large scale assets and the momentum on the capital deployment front is very strong. Second, we held a final close for our infrastructure debt fund for a total strategy size of over $6 billion. Over 60% of the investors in this fund are new to the strategy showcasing Brookfield leadership position in the infrastructure debt space. Within our renewable power and transition business, we recently finalized the first close for the second vintage of our flagship global transition strategy at $10 billion.

Where we have two updates in December we held the final close for the fifth vintage of our flagship global infrastructure fund, bringing the total strategy size to $30 billion.

With approximately 200 investors committed to the fund this fifth vintage is 40% larger than the predecessor fund.

We are now approximately 40% deployed across six large scale assets and the momentum on the capital deployment front is very strong.

Second, we held a final close for our infrastructure debt fund for a total strategy size of over $6 billion. Over 60% of the investors in this fund are new to the strategy showcasing Brookfield leadership position in the infrastructure debt space. Within our renewable power and transition business, we recently finalized the first close for the second vintage of our flagship global transition strategy at $10 billion.

Second we held a final close for our infrastructure debt fund for a total strategy size of over $6 billion.

Over 60% of the investors in this fund are new to the strategy showcasing Brookfield leadership position and the infrastructure that space.

Within our renewable power and transition business. We recently finalized the first close for the second vintage of our flagship global transition strategy at $10 billion.

In the fourth quarter alone, we raised over $6 billion, including an aggregate $3 billion commitment to our transition strategies received from Altera. In real estate, we are completing the first close for the fifth vintage of our flagship real estate opportunistic fund strategy at $8 billion and expect the final close later in 2024. In our credit business, Oaktree raised $30 billion across the franchise in 2023, including almost $10 billion in the fourth quarter. The 12th vintage of our opportunistic credit fund raised $2 billion in the fourth quarter and our strategic lending partners fund raised a $1 billion, bringing the fund sizes to $8 billion and $4 billion, respectively at year end. Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraising for these funds later in 2024.

In real estate, we are completing the first close for the first for the fifth vintage of our flagship real estate opportunistic fund strategy at $8 billion and expect the final close later in 2024. In our credit business Oaktree rates $30 billion of Crocs franchise in 2023 <unk>. Including almost $10 billion in the fourth quarter. The 12th vintage of our opportunistic credit fund raised $2 billion in the fourth quarter and our strategic lending partners fund raised a $1 billion, bringing the fund size to 8 billion and $4 billion, respectively at year end. Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraise for these funds later in 2024.

In our credit business Oaktree rates $30 billion of Crocs franchise in 2023 <unk>. Including almost $10 billion in the fourth quarter. The 12th vintage of our opportunistic credit fund raised $2 billion in the fourth quarter and our strategic lending partners fund raised a $1 billion, bringing the fund size to 8 billion and $4 billion, respectively at year end. Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraise for these funds later in 2024.

Including almost $10 billion in the fourth quarter. The 12th vintage of our opportunistic credit fund raised $2 billion in the fourth quarter and our strategic lending partners fund raised a $1 billion, bringing the fund size to 8 billion and $4 billion, respectively at year end. Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraise for these funds later in 2024.

The 12th vintage of our opportunistic credit fund raised $2 billion in the fourth quarter and our strategic lending partners fund raised a $1 billion, bringing the fund size to 8 billion and $4 billion, respectively at year end. Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraise for these funds later in 2024.

Oaktree has a robust pipeline for additional private credit fund raising and we expect to complete the fundraise for these funds later in 2024.

Turning now towards our outlook for 2024, and as Connor highlighted, should be another very strong year on the fundraising front as we have four flagship funds that are still in the market and approximately 50 strategies that we have either started to raise the money for or expect to launch in the very near future. This should mean that we are in a good position to raise another $90 billion to $100 billion of capital in 2024 and this excludes the AEL acquisition as well as any of the capital that we raised as part of our 2023 plan that slipped into January of this year. We also have over $100 billion of dry powder available for deployment in what we expect should be a very attractive environment for investing. All of this should drive significant growth in our fee revenues in 2024.

In the very near future. This should mean that we are in a good position to raise another $90 billion to $100 billion of capital in 2024, and this excludes the <unk> acquisition.

This should mean that we are in a good position to raise another $90 billion to $100 billion of capital in 2024, and this excludes the <unk> acquisition.

as well as any of the capital that we raised as part of our 2023 plan that slipped into January of this year. We also have over $100 billion of dry powder available for deployment in what we expect should be a very attractive environment for investing. All of this should drive significant growth in our fee revenues in 2024. At the same time, as previously mentioned, we worked hard in 2023 to build much of our investment teams and infrastructure for all of these new fund strategies that Connor touched on. Much of that investment is now complete, so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said, and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

We also have over $100 billion of dry powder available for deployment and what we expect should be a very attractive environment for investing. All of this should drive significant growth in our fee revenues in 2024. At the same time as previously mentioned, we worked hard in 2023 to build much of our investment teams and infrastructure for all of these new fund strategies that Conor touched on. Much of that investment is now complete so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

All of this should drive significant growth in our fee revenues in 2024. At the same time as previously mentioned, we worked hard in 2023 to build much of our investment teams and infrastructure for all of these new fund strategies that Conor touched on. Much of that investment is now complete so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

At the same time, as previously mentioned, we worked hard in 2023 to build much of our investment teams and infrastructure for all of these new fund strategies that Connor touched on. Much of that investment is now complete, so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said, and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

At the same time as previously mentioned, we worked hard in 2023 to build much of our investment teams and infrastructure for all of these new fund strategies that Conor touched on. Much of that investment is now complete so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

Much of that investment is now complete so we expect our expense growth to moderate in 2024, resulting in a sizable improvement to our margins across the business. So with all that said and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

So with all that said and as we highlighted during our call last quarter, we expect to generate outsized growth in our fee related earnings in 2024.

And so with that as a backdrop, in addition to our balance sheet, which has close to $2.7 billion of cash and equivalents and no debt, I am pleased to report that the board of directors has declared a dividend of 38 cents per share for the first quarter of 2024 payable on March 28 to the shareholders of record as of the close of business on February 29th. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

In addition to our balance sheet, which has close to $2 7 billion of cash and equivalents and no debt. I am pleased to report that the board of directors has declared a dividend of 38. Per share for the first quarter of 2024 payable. Payable on March 28 to the shareholders of record. As of the close of business on February 29. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

I am pleased to report that the board of directors has declared a dividend of 38. Per share for the first quarter of 2024 payable. Payable on March 28 to the shareholders of record. As of the close of business on February 29. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

Per share for the first quarter of 2024 payable. Payable on March 28 to the shareholders of record. As of the close of business on February 29. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

Payable on March 28 to the shareholders of record. As of the close of business on February 29. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

As of the close of business on February 29. This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

This dividend increase represents a 19% annual growth rate, which is at the high end of our 15% to 20% target range for dividend annual dividend growth that we set out when we formed the company a year ago. This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

This dividend reaffirms our conviction around our outlook for earnings growth for the next year and beyond.

And so with that, that wraps up our collective prepared remarks for this morning. Thank you for joining the call and we'll now open it up for any questions. Operator?

Speaker Change: Questions operator.

Operator: Thank you. And as a reminder, if you have a question, you will now need to press star one, one on your telephone. If your question has been answered or you wish to remove yourself from the queue, please press star one, one again.

If your question has been answered or you wish to remove yourself from the queue. Please press star one one again.

Our first question will come from the line of Brian Bedell with Deutsche Bank.

Brian Bertram Bedell: Thanks. Good morning, Thanks for taking my questions. Just to clarify on the fund raising outlook for '24 and appreciate the comment on the detail, I counted about 110 billion potentially with another 35 billion scheduled to go with the flagship so just wanted to see if that seems correct and is the $10 billion transition first close is that all in calendar '24 or was some of that in the fourth quarter?

Just to clarify on the fund raising outlook for 'twenty four and appreciate all with the comment on the detail.

I count about 110 billion potentially with another 35 billion are scheduled to go with the flagship so.

Just wanted to see if that seems correct. The $10 billion transition first close is that. In calendar 'twenty, four or was some of that in.

The $10 billion transition first close is that. In calendar 'twenty, four or was some of that in.

In calendar 'twenty, four or was some of that in.

In the fourth quarter.

Connor Teskey: Good morning Brian. Thanks for the question. I'll maybe take that in two parts. The first maybe to answer your second question there, what happened at the end of 2023 is we completed our fundraising but almost entirely to service some of our largest LP partners around the world. They essentially committed to a number of our funds in 2023, but they needed to utilize 2024 allocations. So we did the fundraising work in 2023 and we closed it in the first couple of weeks of January and that's what causes some of that slip from Q4 into the early part of the year.

The first maybe to answer your second question there. What happened at the end of 2023, we completed our fundraising but almost entirely to service some of our largest LP partners around the world. <unk> essentially committed to a number of our funds in 2023, but they needed to utilize 2024 allocations. So we did the fundraising work in 2023, and we closed it in the first couple of weeks of January and that's what causes some of that slipped from Q4 into the early part of the year, we are not double counting.

What happened at the end of 2023, we completed our fundraising but almost entirely to service some of our largest LP partners around the world. <unk> essentially committed to a number of our funds in 2023, but they needed to utilize 2024 allocations. So we did the fundraising work in 2023, and we closed it in the first couple of weeks of January and that's what causes some of that slipped from Q4 into the early part of the year, we are not double counting.

<unk> essentially committed to a number of our funds in 2023, but they needed to utilize 2024 allocations. So we did the fundraising work in 2023, and we closed it in the first couple of weeks of January and that's what causes some of that slipped from Q4 into the early part of the year, we are not double counting.

We are not double counting those numbers when we give our outlook for 2024. We are treating that as 2023 raised capital and therefore, as we look ahead to this year, we do very much expect it to be in line with that call it run rate average of somewhere between 90 and $100 million, excluding the increase due to AEL closing.

Excluding the.

<unk> due to Aes <unk>. Closing.

Closing.

Brian Bertram Bedell: Got it. That's super clear. And then just as a follow up on insurance, I appreciate the color there on the $12 billion to $15 billion annual production. I guess maybe longer term, what's the appetite to do even more deals over time at the capacity that parents do more insurance [inaudible] division, even to a larger extent and expand that $12 to $15 billion in future years.

That's super clear and then just as a follow up on insurance. I appreciate the color there on the $12 billion to $15 billion annual.

I appreciate the color there on the $12 billion to $15 billion annual.

Anybody production. I guess maybe longer term. What's the appetite to do. Even more deals over time at the parent the capacity at the parent do more insurance, Joe and Paul. Struck this division. You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

I guess maybe longer term. What's the appetite to do. Even more deals over time at the parent the capacity at the parent do more insurance, Joe and Paul. Struck this division. You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

What's the appetite to do. Even more deals over time at the parent the capacity at the parent do more insurance, Joe and Paul. Struck this division. You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

Even more deals over time at the parent the capacity at the parent do more insurance, Joe and Paul. Struck this division. You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

Struck this division. You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

You've been you've been to a larger extent and expand that 12% to $15 billion in future years.

Connor Teskey: Great question Brian. Obviously that will be up to the team at [inaudible]. But what we would say is with the upcoming closing of the AEL transaction, that business has very, very significant scale in the United States and becomes one of the market leaders and can deliver tremendous amount of organic growth very accretively. Therefore, if [inaudible] was to consider further deal activity, we do expect that they may consider alternative markets beyond simply the United States.

That business has very very significant scale in the United States and becomes one of the market leaders and can deliver tremendous amount of organic growth very accretively. Therefore, if <unk> was to consider. Further deal activity, we do expect that they may consider alternative markets beyond simply the United States.

Therefore, if <unk> was to consider. Further deal activity, we do expect that they may consider alternative markets beyond simply the United States.

Further deal activity, we do expect that they may consider alternative markets beyond simply the United States.

Brian Bertram Bedell: Okay, great. Thanks very much.

Operator: Thank you. Our next question will come from the line of Cherilyn Radbourne with TD Cowen.

Our next question will come from the line of Cherilyn Radbourne.

With TD Cowen.

Cherilyn Radbourne: Thanks very much and good morning. Connor, I wanted to start with a question for you. In the CGTS press release earlier this week, you were quoted talking about how one of the emerging trends in transition investment involve supplying renewable power to the data and technology sector and I was just hoping you could elaborate on that a little bit and talk about how much of the second fund do you think will be devoted to that type of activity.

Conor I wanted to start with a question for you is that the GTS press release earlier this week.

You were quoted talking about how one of the emerging trends in transition and bachman involve decline renewable power to the data and technology sector and I was just hoping you could elaborate on that a little bit and talk about how much of the second fund do you think will be devoted to that type of deal. Activity.

Activity.

Connor Teskey: Good morning Cherilyn and love that question. Thank you. Maybe just to take a step back and lay the ground work a little bit, there is not much doubt that the leading technology companies around the world today are the largest and fastest growing businesses. And the way those businesses are growing is through cloud and AI. And the way to deliver cloud and AI is through the build out of more data center capacity. This obviously presents a tremendous opportunity for our infrastructure business and its leading data center capacity or its leading data center platform. But perhaps one thing that we feel is not entirely recognized is with the new large scale data centers that are required to support the growth of cloud and AI, these are very large computationally intensive and energy intensive and therefore, putting one of them on a power grid has a destabilizing impact and the large tech companies want to put multiple data centers on each power grid around the world. And therefore, increasingly in order to get your data center permitted you have to come with a power solution as well. And in an indirect way power is now on the critical path to growth for the large tech companies.

Maybe just to take a step back in. Lay the ground work a little bit. There is not much doubt that the leading technology companies around the world today are the largest and fastest growing businesses and the way those businesses are growing is through cloud and AI and the way to deliver cloud and AI is through the build out of more data center capacity.

Lay the ground work a little bit. There is not much doubt that the leading technology companies around the world today are the largest and fastest growing businesses and the way those businesses are growing is through cloud and AI and the way to deliver cloud and AI is through the build out of more data center capacity.

Speaker Change: There is not much doubt that the leading technology companies around the world today are the largest and fastest growing businesses and the way those businesses are growing is through cloud and AI and the way to deliver cloud and AI is through the build out of more data center capacity.

This obviously presents a tremendous opportunity for our infrastructure business and its leading data center capacity. Its leading data center platform. But perhaps one thing that we feel is not entirely recognized is.

Its leading data center platform. But perhaps one thing that we feel is not entirely recognized is.

But perhaps one thing that we feel is not entirely recognized is.

With the new large scale data centers that are required to support the growth of cloud and AI.

These are very large computationally intensive and energy intensive and therefore, putting one of them on a power grid has a deep stabilizing impact and the large tech companies want to put multiple data centers on each power grid around the world. And therefore increasingly in order to get your data center permitted yet has to come with a power solution as well and in an indirect way power is now on the critical path to growth for the large tech companies.

And therefore increasingly in order to get your data center permitted yet has to come with a power solution as well and in an indirect way power is now on the critical path to growth for the large tech companies.

And this is a real opportunity for Brookfield because we are perhaps one of, if not the only provider, who can provide not only scaled data center capacity, but also scaled clean energy solutions on a global basis to enable the growth of these large tech companies. And this is not a market opportunity for the future, this is a market opportunity right now. It lends itself to not only those that have the capital and the capabilities, but also those that put the work in in the past and have the platforms and the pipeline available to service these growing technology companies and it's been a huge driver of our business in both infrastructure and renewable power and transition. And to tie it all up with answering your question, I would expect renewables to continue to be somewhere between 35% and 50% of our global transition fund.

Provider, who can provide not only scaled data center capacity, but also scale clean energy solutions on a global basis to enable the growth of these large tech companies and this is not a market opportunity for the future. This is a market opportunity right now. It lends itself to not only those that have the capital and the capabilities, but also those that put the work and in the past and have the platforms and the pipeline available to service. These growing technology companies and it's been a huge driver of our business in both infrastructure and renewed. Power and transition and. Tie it all up with answering your question I would expect renewables to continue to be somewhere between 35% and 50% of our global transition fund.

It lends itself to not only those that have the capital and the capabilities, but also those that put the work and in the past and have the platforms and the pipeline available to service. These growing technology companies and it's been a huge driver of our business in both infrastructure and renewed. Power and transition and. Tie it all up with answering your question I would expect renewables to continue to be somewhere between 35% and 50% of our global transition fund.

Power and transition and. Tie it all up with answering your question I would expect renewables to continue to be somewhere between 35% and 50% of our global transition fund.

Tie it all up with answering your question I would expect renewables to continue to be somewhere between 35% and 50% of our global transition fund.

Cherilyn Radbourne: That's great color. Thank you. And then separately the letter to shareholders mentioned your existing LPs made a lot of crossover in Boston in the latest round of fundraising, could you talk about what that sort of crossover ratio is across your client base currently and where do you think that ratio can go based on your benchmarking?

And then separately the <unk>. Letter to shareholders mentioned. Existing Lps made a lot of crossover in Boston in the latest round of fundraising can you talk about what that sort of crossover ratio is across your client base currently.

Speaker Change: Letter to shareholders mentioned. Existing Lps made a lot of crossover in Boston in the latest round of fundraising can you talk about what that sort of crossover ratio is across your client base currently.

Existing Lps made a lot of crossover in Boston in the latest round of fundraising can you talk about what that sort of crossover ratio is across your client base currently.

Where do you think that ratio can go both from your benchmark.

Connor Teskey: Certainly. So it's obviously different fund to fund, but probably a rough rule of thumb that can be used is approximately 50% of the capital we raised across 2023 came from re ups from existing fund investors. 25% came from crossover investors and 25% came from new investors. That's probably a good rule of thumb breakdown. We are seeing that 25% from crossover investors as certainly the fastest growing of those three proportions and that's simply a function of our growing relationships with our clients and our ability to offer more products that might meet their interests.

Approximately 20, approximately 50% of the capital we raised across 2023 came from re ups from existing fund investors. 25% came from crossover investors and 25% came from new investors, that's probably a good rule of thumb breakdown, we are seeing that 25% from crossover investors. Certainly the the. The fastest growing of those.

25% came from crossover investors and 25% came from new investors, that's probably a good rule of thumb breakdown, we are seeing that 25% from crossover investors. Certainly the the. The fastest growing of those.

Certainly the the. The fastest growing of those.

The fastest growing of those.

three proportions and that's simply a function of our growing relationships with our clients and our ability to offer more products that might meet their interests.

Cherilyn Radbourne: And so just on average to dig a little deeper there like on average how many funds does the average LP investing with you and where do you think you can take that over time?

Connor Teskey: Certainly. So the number today is about two. The average LP we have is in approximately two of our funds, two of our strategies. We think there's lots of runway for growth in that number. We could see that number doubling over time. It is a process and something we work with our clients on but we do need to see that number moving in only one direction.

The number today is about two <unk>. Average LP, we have is an approximately two. Of our funds two of our strategies. We think theres lots of runway for growth in that number we could see that number doubling over time. It is a process and something we work with our clients on but we do see that number moving in only one direction.

Average LP, we have is an approximately two. Of our funds two of our strategies. We think theres lots of runway for growth in that number we could see that number doubling over time. It is a process and something we work with our clients on but we do see that number moving in only one direction.

Of our funds two of our strategies. We think theres lots of runway for growth in that number we could see that number doubling over time. It is a process and something we work with our clients on but we do see that number moving in only one direction.

We think theres lots of runway for growth in that number we could see that number doubling over time. It is a process and something we work with our clients on but we do see that number moving in only one direction.

Cherilyn Radbourne: Thank you for the time.

Thank you for the time.

Operator: Thank you. Our next question will come from the line of Alexander Blostein with Goldman Sachs.

Our next question will come from the line of Alexander <unk> with Goldman Sachs.

Alexander Blostein: Hi, good morning, Thank you for the question as well. So Connor, lots of discussion around product development and helpful color obviously around the $75 billion plus minus that you guys expect to get over time per year outside of flagships. I'm curious how that impacts your balance sheet strategy. So with respect to any GP co invest to kind of see some of these products and accelerate the growth, how do you think about utilizing something in that $3 billion cash you currently have on the balance sheet and I guess related to that how does that inform your acquisition strategy as well?

So lots of discussion around product development and helpful color, obviously around the $75 billion plus minus that you guys expect to get over time per year outside of flagships curious how that impacts your balance sheet strategy. So with respect to any GP co invest. To kind of see some of these products and accelerate the growth. How do you think about utilizing something in that $3 billion casualty. You currently have on the balance sheet and I guess related to that how does that inform your acquisition strategy as well.

To kind of see some of these products and accelerate the growth. How do you think about utilizing something in that $3 billion casualty. You currently have on the balance sheet and I guess related to that how does that inform your acquisition strategy as well.

Bahir Manios: Hey, Alex, it's Bahir. Maybe I can just start off and talk through the balance sheet strategy, and then probably Connor will chime in just on acquisitions and such. So look, as we noted in our investor day and our call last quarter, the most immediate uses for the balance sheet resources that we have in hand will be used to make GP commitments in a number of the complementary equity strategies that we have in addition to using some of that capital to seed new verticals, new strategies, and also to do selective GP acquisitions. So that's the strategy, that's what we're highly focused on.

Talk through the balance sheet strategy, and then probably Conor will chime in just on acquisitions and such. So look as we have. As we noted in our Investor day. And. Our call. Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

So look as we have. As we noted in our Investor day. And. Our call. Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

As we noted in our Investor day. And. Our call. Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

And. Our call. Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Our call. Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Last quarter that the most immediate uses for the balance sheet resources that we have in hand. Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Will be used to make GP commitments. In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

In a number of the complementary equity strategies that we have. In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

In addition to using some of that capital to seed new verticals new strategies. And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Speaker Change: And also to do selective GP. Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Acquisitions. So that's that's that's the strategy that's what we're highly focused on.

Some of the near term initiatives that we're working on and Connor touched on most of these in his remarks, but we will be allocating capital towards Pine Grove, our technology secondary strategy. We've got a special investment strategy, our BSI within our private equity group that we're also allocating capital to. Two secondary strategies, one in infrastructure, one in private equity, we're also going to be committing capital to. And then the two exciting new initiatives that we talked about today being the Middle Eastern private equity fund in addition to the financial backbone and our infrastructure strategy as well. So we're finalizing our plans, we don't have all the sort of final numbers on all of that but just wanted to give you an idea of all the vast amount of things that we're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our franchise going forward and then maybe Connor will speak to the acquisitions. For sure. I don't have much to add beyond what Bahir said other than to say that we're very fortunate to have very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority, if not the entirety of our balance sheet to go towards. We certainly view those as both the most accretive and most growth enabling opportunities for that capital.

Investment strategy, our BSI within our private equity group that we're also allocating capital to. Two secondary strategies running infrastructure one in private equity, we're also going to be committing capital to and then the two exciting new initiatives that we talked about today being the middle eastern. Private equity fund in addition to the financial backbone and our infrastructure strategy is as well so. We're finalizing our plans we don't have all the sort of final numbers. On all of that but just wanted to give you an idea of all the vast amount of things. We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Two secondary strategies running infrastructure one in private equity, we're also going to be committing capital to and then the two exciting new initiatives that we talked about today being the middle eastern. Private equity fund in addition to the financial backbone and our infrastructure strategy is as well so. We're finalizing our plans we don't have all the sort of final numbers. On all of that but just wanted to give you an idea of all the vast amount of things. We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Private equity fund in addition to the financial backbone and our infrastructure strategy is as well so. We're finalizing our plans we don't have all the sort of final numbers. On all of that but just wanted to give you an idea of all the vast amount of things. We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

We're finalizing our plans we don't have all the sort of final numbers. On all of that but just wanted to give you an idea of all the vast amount of things. We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

On all of that but just wanted to give you an idea of all the vast amount of things. We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

We're going to be doing to assist a number of our business units. And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

And these strategies are going to be very additive to our friend. Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Franchise going forward and then maybe carnival speak too. Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Acquisitions. For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

For sure. I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

I don't have much to add beyond what <unk> said other than to say that we're very fortunate to have. A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Connor Teskey: For sure. I don't have much to add beyond what Bahir said other than to say that we're very fortunate to have very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority, if not the entirety of our balance sheet to go towards. We certainly view those as both the most accretive and most growth enabling opportunities for that capital.

A very strong financial resources on our balance sheet and between some of the tactical GP M&A that we mentioned in our remarks and the feeding of the new product development that is where we expect the vast majority if not the <unk>. <unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

<unk> of our balance sheet to go towards we certainly view those as both the most accretive and most of that growth enabling opportunities for that capital.

Alexander Blostein: Great. That's helpful. Thanks. And then my follow up is around the fund raising targets you've laid out for 2024. So as we sort of think about the $90 billion to $100 billion of fund raising you expect to see this year, as the business becomes more diversified, the sources of that have obviously expanded so you have insurance, you have traditional style kind of LPGP funds, you got well so help us maybe frame what's the fee bearing capital associated with that 90 to 100, and then ultimately what's kind of the blended fee rate do you guys expect to come in. And I understand it's not going to come in on day one so it's not all going to hit in 2024, but help us maybe think about how this fundraising dynamic translate into actual management fees. Thanks.

As the business becomes more diversified the sources of that have obviously expanded so you have insurance you have traditional style kind of LPG P. Funds, you got well so help us maybe frame, what's the fee bearing capital associated with that 90 to 100, and then ultimately whats kind of the blended fee rate do you guys expect to come in and I understand it's not going to come in on day one. So it's not all going to hit in <unk>. 2024, but help us maybe think about how this fundraising dynamic translate into actual management fees. Thanks.

So it's not all going to hit in <unk>. 2024, but help us maybe think about how this fundraising dynamic translate into actual management fees. Thanks.

2024, but help us maybe think about how this fundraising dynamic translate into actual management fees. Thanks.

Bahir Manios: Hey, Alex, it's Bahir again. There's probably a lot of details. As you can imagine we've got as I noted in my remarks, we've got 50 strategies we're going to be fundraising on and that's just on what we call the complementary strategy side of things in addition to the four flagships. So with respect to fundraising, for 2024 the $90 billion to $100 billion target that we've set out for ourselves, you should expect a third of that to come from the flagships that we're still fundraising for. And as you know, we earn fees on committed capital there. A third will come from the complementary strategies. You could say half of those will come from equity related strategies, so financial infrastructure, Middle Eastern private equity, catalytic transition secondaries et cetera, and half of those will be from credit funds, so we will be out in the market next year with our real estate finance fund. Our royalties business is growing, our consumer finance business LCM is also growing. The number of strategies in Oaktree 17 capital et cetera, lots of great things happening there.

Tahira again. There's probably a lot of. A detailed as you can imagine we've got as a <unk>. Note that in my remarks, we've got. 50. And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

There's probably a lot of. A detailed as you can imagine we've got as a <unk>. Note that in my remarks, we've got. 50. And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

A detailed as you can imagine we've got as a <unk>. Note that in my remarks, we've got. 50. And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

Tahira: Note that in my remarks, we've got. 50. And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

50. And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

And that's just on the what we call the complementary strategy side of things in addition to the fore. Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

Flagship so with respect to fundraising the way. For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

For 2020 for the $90 billion to $100 billion. Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

Target that we've set out for ourselves you should expect a third of that to come from. The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

The flagships that we're still fundraising for and as you know. We earn fees on committed capital there. A third will come from that complementary.

We earn fees on committed capital there. A third will come from that complementary.

A third will come from that complementary.

strategies. You could say half of those will come from equity related strategies, so financial infrastructure, Middle Eastern private equity, catalytic transition secondaries et cetera, and half of those will be from credit funds, so we will be out in the market next year with our real estate finance fund. Our royalties business is growing, our consumer finance business LCM is also growing. The number of strategies in Oaktree 17 capital et cetera, lots of great things happening there. So broadly speaking, maybe half of that will be based on invested capital versus committed capital and it generally takes us three years or so to invest that capital. So a third comes from flagships, a third from complementary strategies, about 15% or so 20% comes from insurance inflows that Conner touched on. We will get paid on those right away as soon as we get them and then there is our normal course co investments that we do, perpetual strategies, semi liquid et cetera, so lots of things. And I'd say from a fee perspective, the average fees that we've had over the last couple of years, which is over 100 basis points we expect that to be consistent heading into 2024.

Credit funds, so we will be out in the market next year with our real estate. <unk> Finance fund our royalties business is growing our consumer finance business LCM is also growing. <unk> strategy is an oaktree 17 capital et cetera lots of great things happening there so broad. Broadly speaking maybe half of that will be based on invested capital. Versus committed capital and generally takes us three years or so to invest that capital and so if I can third comes from flagships third from complementary strategies. About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

<unk> Finance fund our royalties business is growing our consumer finance business LCM is also growing. <unk> strategy is an oaktree 17 capital et cetera lots of great things happening there so broad. Broadly speaking maybe half of that will be based on invested capital. Versus committed capital and generally takes us three years or so to invest that capital and so if I can third comes from flagships third from complementary strategies. About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

<unk> strategy is an oaktree 17 capital et cetera lots of great things happening there so broad. Broadly speaking maybe half of that will be based on invested capital. Versus committed capital and generally takes us three years or so to invest that capital and so if I can third comes from flagships third from complementary strategies. About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

Broadly speaking maybe half of that will be based on invested capital. Versus committed capital and generally takes us three years or so to invest that capital and so if I can third comes from flagships third from complementary strategies. About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

So broadly speaking, maybe half of that will be based on invested capital versus committed capital and it generally takes us three years or so to invest that capital. So a third comes from flagships, a third from complementary strategies, about 15% or so 20% comes from insurance inflows that Conner touched on. We will get paid on those right away as soon as we get them and then there is our normal course co investments that we do, perpetual strategies, semi liquid et cetera, so lots of things. And I'd say from a fee perspective, the average fees that we've had over the last couple of years, which is over 100 basis points we expect that to be consistent heading into 2024.

Versus committed capital and generally takes us three years or so to invest that capital and so if I can third comes from flagships third from complementary strategies. About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

About 15% or so 20% comes from insurance and flows that corner touched on we will get paid on those right away as soon as we get them and then there is the our normal course co investments that we do perpetual strategies semi liquid et cetera, so lots of things and. Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

Say from a fee perspective. The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

The average fees that we've had over the last couple of years, which is that over 100 basis points. We will be consistent. We expect that to be consistent heading into 2024.

We will be consistent. We expect that to be consistent heading into 2024.

We expect that to be consistent heading into 2024.

Alexander Blostein: Great. Super helpful. Thank you guys.

Bahir Manios: Thanks, Alex.

Operator: Thank you. Our next question will come from the line of Mike Brown with JBW.

Okay.

Operator: Our next question will come from the line of Mike Brown with <unk>. Sure.

Sure.

Michael C. Brown: Alright, great. Thanks for taking my questions. Just wanted to start on the insurance side of the business. Can you maybe just expand on the timing for the AEL close? I think the hope was a year end close, but I understand regulatory approvals take time, but what's maybe the updated view on that and anything you can maybe expand on what has caused it to not yet close?

Just wanted to start on the insurance side of the business can you maybe just expand on the timing for the AGL close I think the hope was that a year end close, but I understand regulatory approvals.

Take time, but what's maybe the updated view on that and. Anything you can maybe expand on what has. Cause it to not yet closed.

Anything you can maybe expand on what has. Cause it to not yet closed.

Cause it to not yet closed.

And then just in addition to the scaling of the insurance business at Brookfield Corp, do you think you have the right asset mix and scale to continue to service the insurance balance sheets? For example, do you expect to need to kind of continue to scale the ABS business, and as you do so, does that actually set you up well to win some more third party insurance AUM over time?

The scaling of the insurance business at Brookfield Corp. Do you think you have the right asset mix and scale to to continue to service the insurance balance sheets. Like for example, do you expect to need to kind of continue to scale the ABS. Business. And as you do so does that actually set you up well to win some more third party insurance AUM over time.

Do you think you have the right asset mix and scale to to continue to service the insurance balance sheets. Like for example, do you expect to need to kind of continue to scale the ABS. Business. And as you do so does that actually set you up well to win some more third party insurance AUM over time.

Business. And as you do so does that actually set you up well to win some more third party insurance AUM over time.

And as you do so does that actually set you up well to win some more third party insurance AUM over time.

Connor Teskey: Mike, thanks for the question. In terms of the AEL closing process, I would say, it's very normal course for a transaction of this type. In November, we received overwhelming support from the AEL shareholders. We continue to work through the regulatory process and I would say we continue to target closing shortly. Nothing really to report and certainly nothing out of the ordinary in how that process is progressing. In terms of how our platform is set up to service that insurance balance sheet and third party insurance clients, we feel that we are extremely well positioned today and we will only go from strength to strength in that regard. Really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to one of the largest and broadest credit franchises in the world, obviously with credit being a key asset class to service insurance, when you were able to pair credit with the long duration inflation linked assets that we have across real estate and infrastructure and renewables, we really feel that we have a product suite that is relatively unmatched in terms of servicing those clients.

In terms of the ADL closing process. I would say, it's very normal course for a transaction of this type in November we received overwhelming support from the Aes <unk> shareholders. We continue to work through the regulatory process and I would say we continue to target closing shortly. Nothing really to report and certainly nothing out of the out of the ordinary in how that process is progressing. In terms of how our platform is set up to service. That insurance balance sheet and third party. Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

I would say, it's very normal course for a transaction of this type in November we received overwhelming support from the Aes <unk> shareholders. We continue to work through the regulatory process and I would say we continue to target closing shortly. Nothing really to report and certainly nothing out of the out of the ordinary in how that process is progressing. In terms of how our platform is set up to service. That insurance balance sheet and third party. Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

Nothing really to report and certainly nothing out of the out of the ordinary in how that process is progressing. In terms of how our platform is set up to service. That insurance balance sheet and third party. Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

Tahira: In terms of how our platform is set up to service. That insurance balance sheet and third party. Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

That insurance balance sheet and third party. Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

Insurance clients. We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

We feel that we are extremely well positioned today and we will only go from strength to strength in that regard really our process of being well positioned to service insurance started in 2019 with our partnership with Oaktree and giving ourselves access to.

<unk>. One of the largest and broadest credit franchises in the world, obviously with credit being a key asset class to service insurance. When you were able to pair credit with the long duration inflation linked assets that we have across real estate and infrastructure and renewables.

One of the largest and broadest credit franchises in the world, obviously with credit being a key asset class to service insurance. When you were able to pair credit with the long duration inflation linked assets that we have across real estate and infrastructure and renewables.

we really feel that we have a product suite that is relatively unmatched in terms of servicing those clients. All that being said, there is room to run. And as we think about some of those tactical M&A opportunities, one that is top of mind are other credit type initiatives that may be well suited to service insurance clients. So your question is spot on. We think we're well positioned today, but can go from strength to strength in the future.

we really feel that we have a product suite that is relatively unmatched in terms of servicing those clients.

Relatively unmatched in terms of servicing those clients all of that being said there is room to run. And as we think about. Some of those tactical M&A opportunities one that is top of mind or other credit type initiatives that may be well suited to serve it. <unk> clients. So your question is spot on we think we're well positioned today, but can go from strength to strength in the future.

All that being said, there is room to run. And as we think about some of those tactical M&A opportunities, one that is top of mind are other credit type initiatives that may be well suited to service insurance clients. So your question is spot on. We think we're well positioned today, but can go from strength to strength in the future.

And as we think about. Some of those tactical M&A opportunities one that is top of mind or other credit type initiatives that may be well suited to serve it. <unk> clients. So your question is spot on we think we're well positioned today, but can go from strength to strength in the future.

Some of those tactical M&A opportunities one that is top of mind or other credit type initiatives that may be well suited to serve it. <unk> clients. So your question is spot on we think we're well positioned today, but can go from strength to strength in the future.

<unk> clients. So your question is spot on we think we're well positioned today, but can go from strength to strength in the future.

Michael C. Brown: Okay, great. Thanks for all that color. Maybe a question for Bahir. In 2023, the consolidated margin came in around 54%. As we look out to 2024, you have got a lot of moving pieces that are falling into place and certainly some large fund raising numbers that will kind of come through throughout the year. Is it possible that the margin gets back to the 56% level if it wasn't the kind of the prior year period, and what is kind of the run rate margin expansion potential that we should think about when we look beyond 2024?

Maybe a question for Bahir. In 2023 that the consolidated margin came in around 54% as we look out to 2024, you have got a lot of moving pieces that are falling into place and certainly some some large fund raising numbers that will kind.

In 2023 that the consolidated margin came in around 54% as we look out to 2024, you have got a lot of moving pieces that are falling into place and certainly some some large fund raising numbers that will kind.

Kind of come through throughout the year. Is it possible that the margin gets back to the 56 level, 56% level. If it wasn't the kind of the prior year period, and what is kind of the run rate margin expansion potential that we should think about when we when we when we look beyond 2024.

Is it possible that the margin gets back to the 56 level, 56% level. If it wasn't the kind of the prior year period, and what is kind of the run rate margin expansion potential that we should think about when we when we when we look beyond 2024.

Bahir Manios: Hey, Mike. Certainly. So look, when we're reporting and usually refer to our margins, we do it on sort of a proportionate basis, we've taken all of the Brookfield related activities, then pick an Oaktree at its share et. cetera, and to come up with a net to [inaudible] proportionate sort of margin of 56% for the year, so that's down 200 basis points from the prior year end. Our target starting in 2024 is to get back to certainly prior year levels and even higher for the years beyond. Lots of execution ahead of us, but that is at least the target that we've set out for ourselves internally as an organization.

Certainly so look when we. When we're reporting and usually refer to our margins, we do it on sort of a proportionate. Basis, we've taken all of the Brookfield related activities, then pick an oaktree at its share et. Et cetera, and to come up with a net to Bam proportionate sort of margin. 56% for the year, so that's down. 200 basis points from the prior year. Year end, our target starting in 2020 for us to get back.

When we're reporting and usually refer to our margins, we do it on sort of a proportionate. Basis, we've taken all of the Brookfield related activities, then pick an oaktree at its share et. Et cetera, and to come up with a net to Bam proportionate sort of margin. 56% for the year, so that's down. 200 basis points from the prior year. Year end, our target starting in 2020 for us to get back.

Basis, we've taken all of the Brookfield related activities, then pick an oaktree at its share et.

Et cetera, and to come up with a net to Bam proportionate sort of margin. 56% for the year, so that's down. 200 basis points from the prior year. Year end, our target starting in 2020 for us to get back.

56% for the year, so that's down. 200 basis points from the prior year. Year end, our target starting in 2020 for us to get back.

200 basis points from the prior year. Year end, our target starting in 2020 for us to get back.

Year end, our target starting in 2020 for us to get back.

Two. Certainly prior year levels and. And even higher for the years beyond. And lots of execution. Ahead of us, but that is at least the target that we've set out for ourselves internally. As an organization. Okay.

Certainly prior year levels and. And even higher for the years beyond. And lots of execution. Ahead of us, but that is at least the target that we've set out for ourselves internally. As an organization. Okay.

Tahira: And even higher for the years beyond. And lots of execution. Ahead of us, but that is at least the target that we've set out for ourselves internally. As an organization. Okay.

And lots of execution. Ahead of us, but that is at least the target that we've set out for ourselves internally. As an organization. Okay.

Ahead of us, but that is at least the target that we've set out for ourselves internally. As an organization. Okay.

As an organization. Okay.

Okay.

Michael C. Brown: Okay, that's very helpful. Thank you for that.

Bahir Manios: Thank you.

Operator: Thank you. Our next question will come from the line of Craig Siegenthaler with Bank of America.

Our next question will come from the line of Craig Siegenthaler with Bank of America.

Craig Siegenthaler: Hey, good morning everyone. My first one is another one on AEL. There's quite a few off managers with partnerships with annuity underwriters now and they are all looking to grow. So it looks like competition is intensifying and at the same time interest rates are now falling which do indicate that annuity sales may also go down. So I know the ROE and NIM doesn't exactly matter for Pam it's more of a [inaudible] issue, but higher competition could impact your retail channel flow. So my question really is what are your thoughts on the competitive landscape today?

There's quite a few off managers with partnerships with annuity underwriter's now and they are all looking to grow so it looks like competition is intensifying and at the same time interest rates are now falling which do indicate that annuity sales may also go down so I know the ROE and NIM doesn't exactly matter for Pam it's more of a. <unk> issue, but higher competition could impact your retail channel flow somewhat my question really is what are your thoughts on the competitive landscape today.

<unk> issue, but higher competition could impact your retail channel flow somewhat my question really is what are your thoughts on the competitive landscape today.

Connor Teskey: Good morning Craig. Thanks for the question. There would be two answers to that question. One, the nice thing about the AEL transaction is we have a playbook that we just executed on through American National and we knew exactly what we did there in order to drive growth and increase profitability in that business and we see a lot of the same attributes and opportunities upon closing AEL. And yes, the market backdrop will influence that but we think a lot of the near term performance and growth is going to be within our control. And while interest rates and competition may have an impact, the second point is, upon closing this transaction, we have very meaningful scale in the United States and that will be a key differentiator and a competitive advantage that positions us well even in a deferring interest rate environment that may be more competitive. We think our scale will continue to provide a competitive advantage and a bit of a moat that will allow us to continue to drive that call it $12 billion to $15 billion of growth annually.

There would be two two answers to that question. One. The nice thing about the ADL transaction is we have a playbook that we just executed on through American National and we knew exactly what we did there in order to drive growth and increased profitability in that business and we see a lot of the same attributes.

Tahira: One. The nice thing about the ADL transaction is we have a playbook that we just executed on through American National and we knew exactly what we did there in order to drive growth and increased profitability in that business and we see a lot of the same attributes.

The nice thing about the ADL transaction is we have a playbook that we just executed on through American National and we knew exactly what we did there in order to drive growth and increased profitability in that business and we see a lot of the same attributes.

The opportunity is upon closing. And yes, the market backdrop will will influence that but we think a lot of the near term performance and growth is going to be within our control and while interest rates and competition. May have an impact.

And yes, the market backdrop will will influence that but we think a lot of the near term performance and growth is going to be within our control and while interest rates and competition. May have an impact.

May have an impact.

the second point is, upon closing this transaction, we have very meaningful scale in the United States and that will be a key differentiator and a competitive advantage that positions us well even in a deferring interest rate environment that may be more competitive. We think our scale will continue to provide a competitive advantage and a bit of a moat that will allow us to continue to drive that call it $12 billion to $15 billion of growth annually.

Upon closing this transaction, we have very meaningful scale in the United States and that will be a key differentiator and a competitive advantage that positions us well even in the. Deferring interest rate environment that may be more competitive we think our scale. We will continue to provide a competitive advantage and a bit of a moat that will allow us to continue to drive that that call. It. At $12 billion to $15 billion.

Deferring interest rate environment that may be more competitive we think our scale. We will continue to provide a competitive advantage and a bit of a moat that will allow us to continue to drive that that call. It. At $12 billion to $15 billion.

We will continue to provide a competitive advantage and a bit of a moat that will allow us to continue to drive that that call. It. At $12 billion to $15 billion.

At $12 billion to $15 billion.

Of growth annually.

Craig Siegenthaler: Thanks. My follow up is on real estate fund five. So the last two vintages were 15 billion. You already raised 8 billion through January so more than halfway to the prior sizes. I wanted your perspective on kind of recent conversations with LPs, feedback from the roadshows, do you think you're going to be able to hit that 15 billion dollars level by your final close which I think you said will be later this year, so we're penciling it at around 4Q '24 for the final close of real estate fund five.

The last two vintages were <unk> 15 billion. <unk> raised 8 billion through January so more than halfway to the prior sizes. I wanted your perspective on kind of recent conversations with Lps. Feedback from the Roadshows. Do you think youre going to be able to hit that.

<unk> raised 8 billion through January so more than halfway to the prior sizes. I wanted your perspective on kind of recent conversations with Lps. Feedback from the Roadshows. Do you think youre going to be able to hit that.

I wanted your perspective on kind of recent conversations with Lps. Feedback from the Roadshows. Do you think youre going to be able to hit that.

Feedback from the Roadshows. Do you think youre going to be able to hit that.

Do you think youre going to be able to hit that.

billion dollars level by your final close which I think you said will be later this year, so we're penciling it at around 4Q '24 for the final close of real estate fund five. Yeah, very little concern. We're thrilled with the traction that the fund has been getting and really, it's important to recognize what our flagship fund offers. This is a fund, an opportunistic real estate fund that has delivered 18% net IRRs across four vintages to date and is for lack of a better term, perfectly suited for the current market environment. So I would say the traction is very strong. First close at more than 50% of the fund target is a very, very strong indication. And a point we would highlight is that's very much in line with the previous funds as well in terms of their first close. And perhaps the thing that gets us really excited is the the re up rates we're seeing from our clients are particularly strong in real estate and that's really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

billion dollars level by your final close which I think you said will be later this year, so we're penciling it at around 4Q '24 for the final close of real estate fund five.

The final close of real estate fund VI. Yes. Very little concern, we're thrilled with the traction that the fund has been getting and really.

Yes. Very little concern, we're thrilled with the traction that the fund has been getting and really.

Very little concern, we're thrilled with the traction that the fund has been getting and really.

Connor Teskey: Yeah, very little concern. We're thrilled with the traction that the fund has been getting and really, it's important to recognize what our flagship fund offers. This is a fund, an opportunistic real estate fund that has delivered 18% net IRRs across four vintages to date and is for lack of a better term, perfectly suited for the current market environment. So I would say the traction is very strong. First close at more than 50% of the fund target is a very, very strong indication. And a point we would highlight is that's very much in line with the previous funds as well in terms of their first close. And perhaps the thing that gets us really excited is the the re up rates we're seeing from our clients are particularly strong in real estate and that's really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

It's important to recognize what our flagship fund offers. This is a fund an opportunistic real estate fund that has delivered. 18% net IRR is across four vintages to date and is. For lack of a better term perfectly suited for the current market environment. So I would say the trend the traction is very strong. First close at more than <unk>. 50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

This is a fund an opportunistic real estate fund that has delivered. 18% net IRR is across four vintages to date and is. For lack of a better term perfectly suited for the current market environment. So I would say the trend the traction is very strong. First close at more than <unk>. 50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

18% net IRR is across four vintages to date and is. For lack of a better term perfectly suited for the current market environment. So I would say the trend the traction is very strong. First close at more than <unk>. 50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

For lack of a better term perfectly suited for the current market environment. So I would say the trend the traction is very strong. First close at more than <unk>. 50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

First close at more than <unk>. 50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

50% of the fund target is a very very strong. Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

Indication and a point we would highlight is that's very much in line with the previous funds as well in terms of their first close and perhaps the thing that gets us really excited is the. The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

The re up rates, we're seeing from our clients are particularly strong in. In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

In real estate and Thats really a function of our franchise and something that gives us confidence in hitting that target fund rates this year.

Craig Siegenthaler: Thank you very much.

Operator: Thank you. Our next question will come from the line of Nik Priebe with CIBC Capital Markets.

Thank you. Our next question will come from the line of Nik Priebe with CIBC capital markets.

Our next question will come from the line of Nik Priebe with CIBC capital markets.

Nik Priebe: Okay, thanks. I wanted to ask a question about fundraising dynamics and your experience with the second iteration of the transition fund. I think you've suggested that you're anticipating an expansion in the number of LPs in fund two, but considering that the vast majority of assets in the first fund are still unrealized, as you seek to broaden the investor base, does that create an impediment for a subset of investors. And in that context, not to put the cart before the horse, but would you expect more success or momentum on that front for the third vintage specifically considering that the inaugural find at that time would be a bit more mature in its life cycle?

Want to ask a question about fundraising dynamics and your experience with the second iteration of the transition fund. I think you've suggested that you're anticipating an expansion in the number of Lps and fund too. But considering that the vast majority of assets in the first fund are still unrealized as you seek to broaden the investor base does that create an impediment for a subset of investors and in that context not to put the cart before the horse, but would you expect more success or momentum on that front for the third vintage specifically considering that the.

I think you've suggested that you're anticipating an expansion in the number of Lps and fund too. But considering that the vast majority of assets in the first fund are still unrealized as you seek to broaden the investor base does that create an impediment for a subset of investors and in that context not to put the cart before the horse, but would you expect more success or momentum on that front for the third vintage specifically considering that the.

But considering that the vast majority of assets in the first fund are still unrealized as you seek to broaden the investor base does that create an impediment for a subset of investors and in that context not to put the cart before the horse, but would you expect more success or momentum on that front for the third vintage specifically considering that the.

Inaugural find at that time would be a bit more mature in its life cycle.

Connor Teskey: Thanks Nik. Perhaps a few things to unpack there. The first I would say is let me start by saying yes, we have a very strong belief that the number of LPs in BDTF2 will dramatically, meaningfully exceed the number of LPs in BDTF1. The first reason is a macro reason, which is although we're only call it three years between fundraising for successive vintages, two things have happened in the market on a very accelerated pace over those three years. One is many institutional investors around the world either now have a transition allocation or they have at least determined where within their business transition investments fit and they have a dedicated pool of capital towards those types of strategies. That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of LPs looking to deploy in these types of strategies.

The first I would say is a let me start by saying yes. We have a very strong belief that the number of Lps in beta Etfs two will. Dramatically meaningfully exceed the number of Lps and <unk> one. The first reason is a macro reason which is. Although we're only call it three years.

We have a very strong belief that the number of Lps in beta Etfs two will. Dramatically meaningfully exceed the number of Lps and <unk> one. The first reason is a macro reason which is. Although we're only call it three years.

Dramatically meaningfully exceed the number of Lps and <unk> one. The first reason is a macro reason which is. Although we're only call it three years.

The first reason is a macro reason which is. Although we're only call it three years.

Although we're only call it three years.

Between. Fundraising for successive vintages, two things have happened in the market. On a very accelerated pace over those three years, one is many institutional investors around the world either now have a transition allocation or they have at least determined where within their business transition investments fit and they have a dedicated. Pool of capital towards those types of strategies. That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of lp's looking to deploy in these types of strategies.

Fundraising for successive vintages, two things have happened in the market. On a very accelerated pace over those three years, one is many institutional investors around the world either now have a transition allocation or they have at least determined where within their business transition investments fit and they have a dedicated. Pool of capital towards those types of strategies. That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of lp's looking to deploy in these types of strategies.

On a very accelerated pace over those three years, one is many institutional investors around the world either now have a transition allocation or they have at least determined where within their business transition investments fit and they have a dedicated. Pool of capital towards those types of strategies. That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of lp's looking to deploy in these types of strategies.

Pool of capital towards those types of strategies. That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of lp's looking to deploy in these types of strategies.

That dynamic has increased meaningfully versus 2021, and therefore, we are seeing a much broader opportunity set in terms of lp's looking to deploy in these types of strategies.

The second one is entirely commercial which is the last two or three years have demonstrated to market participants that investing in transition is a very, very attractive risk adjusted return and a very large and growing attractive commercial strategy and therefore, we are seeing not only bigger allocations but more investors allocating to this space. Those are the macro dynamics. The comment I would make more specific to our cadence that's coming back to the market is yes, we don't have realized marks in BGTF1 yet as a result of the fund only being largely invested over the last couple of years, but what we're seeing from LP partners, both existing and new potential partners is it's very clear some of the key macro trends that we got out in front of and some of the very attractive value entry points we secured in that BGTF1 fund and therefore, while there aren't realized marks that people can rely on, the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors and I would say quite supportive of our fundraising for BGTF2. So is it an unusual dynamic? Perhaps. And do we view it as an impediment to fundraising? No, we do not.

Market participants that investing in transition is a very very attractive risk adjusted return and a very large and growing. Attractive commercial strategy and therefore, we are seeing not only bigger allocations, but. More investors allocating to this space. Those are the macro dynamics that the comment I would make more specific to R. K. Cadence that's coming back to the market is yes, we do.

Attractive commercial strategy and therefore, we are seeing not only bigger allocations, but. More investors allocating to this space. Those are the macro dynamics that the comment I would make more specific to R. K. Cadence that's coming back to the market is yes, we do.

More investors allocating to this space. Those are the macro dynamics that the comment I would make more specific to R. K. Cadence that's coming back to the market is yes, we do.

Those are the macro dynamics that the comment I would make more specific to R. K. Cadence that's coming back to the market is yes, we do.

Cadence that's coming back to the market is yes, we do.

Don't have realized marks in BG TF one yet. As a result of the fund only being largely invested over the last couple of years, but. What we're seeing from LP partners, both existing and new potential partners is it's very clear some of the key macro trends that we got out in front of. And some of the very attractive value entry points. We secured in that BG TF, one fund and therefore, while there aren't realized marks that people can rely on the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors. I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

As a result of the fund only being largely invested over the last couple of years, but. What we're seeing from LP partners, both existing and new potential partners is it's very clear some of the key macro trends that we got out in front of. And some of the very attractive value entry points. We secured in that BG TF, one fund and therefore, while there aren't realized marks that people can rely on the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors. I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

What we're seeing from LP partners, both existing and new potential partners is it's very clear some of the key macro trends that we got out in front of. And some of the very attractive value entry points. We secured in that BG TF, one fund and therefore, while there aren't realized marks that people can rely on the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors. I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

And some of the very attractive value entry points. We secured in that BG TF, one fund and therefore, while there aren't realized marks that people can rely on the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors. I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

We secured in that BG TF, one fund and therefore, while there aren't realized marks that people can rely on the value entry point that we were able to secure using our scale and using our operating capabilities are very obvious to investors. I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

I would say quite supportive of our fundraising for <unk> II. So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

So is it an unusual dynamic perhaps do we view it as an impediment to fundraising no we do not.

Nik Priebe: Okay, that's good color. And then just shifting gears, I understand the way that carried interest is shared between the manager and the corporation. It won't be a meaningful contributor to the distributable earnings in the immediate future, but I was wondering if you could talk a little bit about how much carry you've accrued so far and just how big do you envision that component of the earnings profile becoming in the longer run, say five years from now.

And then just shifting gears I understand the way that carried interest is shared between the manager and the corporation.

It won't be a meaningful contributor to the distributable earnings in the immediate future, but I was wondering if you could talk a little bit about how much carry you've accrued so far. And just how big do you envision that component of the earnings profile, becoming in the longer run. So you say five years from now.

And just how big do you envision that component of the earnings profile, becoming in the longer run. So you say five years from now.

Connor Teskey: Certainly. And maybe just as a reminder to everyone, at the time of the spin out accrued carry was last at BN, so we were starting from a clean slate and then on go forward carry, one third goes to BN and two thirds remains with Bam. So exactly as was just mentioned, we do not expect realized carry to be a meaningful part of our DE for the first five years post spin out to date our accrued carry has reached about $200 million, but we expect that to continue to grow very, very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized carry in approximately the $2 billion range with that more than tripling in the three to four years following that. So while it is a bit deferred in the future, this becomes a very meaningful driver of our economics come the latter portion of the decade.

At the time of the spin out accrued carry was last at BN. So we were starting from. Clean slate and then on go forward Carrie. One third goes to BN and two thirds remains with Bam. Exactly as was just mentioned we do not expect. Realized carry to be a meaningful part of our day for for the first five years post spin out. To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Clean slate and then on go forward Carrie. One third goes to BN and two thirds remains with Bam. Exactly as was just mentioned we do not expect. Realized carry to be a meaningful part of our day for for the first five years post spin out. To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

One third goes to BN and two thirds remains with Bam. Exactly as was just mentioned we do not expect. Realized carry to be a meaningful part of our day for for the first five years post spin out. To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Exactly as was just mentioned we do not expect. Realized carry to be a meaningful part of our day for for the first five years post spin out. To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Realized carry to be a meaningful part of our day for for the first five years post spin out. To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Tahira: To date. Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Our accrued carry has reached about $200 million. But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

But we expect that to continue to grow very very meaningfully going forward. By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

By the end of the decade, I think in our Investor Day forecast, we suggested that by 2029, we expect to see realized. Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Cary in approximately the $2 billion range with that more than tripling in the three to four years following that so while it is a bit deferred in the future. This becomes a very meaningful. Driver of our economics. Come the latter portion of the decade.

Driver of our economics. Come the latter portion of the decade.

Come the latter portion of the decade.

Nik Priebe: Okay. That's it for me. Thank you.

Operator: Thank you. Our next question will come from the line of Kenneth Worthington with JP Morgan.

Tahira: Our next question will come from the line of Kenneth Worthington with JP Morgan.

Kenneth Brooks Worthington: Hi, good morning, good afternoon, thanks for taking the questions. We're seeing renewed concerns about the commercial real estate market in the US, I would say punctuated by some comments by Janet Yellen, highlighting some risks here, how do you see the investment and realization environment sort of developing in 2024 and your real estate business broadly as the year continues to roll on?

We're seeing renewed concerns about the commercial real estate market in the U S. I would say punctuated by some comments by Janet Yellen, highlighting some risks here, how do you see the investment and realization environment sort of developing in 2024 and your real estate business broadly as the year continues to roll on. Certainly thanks.

Certainly thanks.

Connor Teskey: Thanks, Ken. Maybe just a couple of points here. There is no doubt that there is a little bit of stress in certain portions of the real estate market. But while that temporary stress is a reality for some, it's also an opportunity for others. And with the breadth of our real estate franchise and how we fund our businesses, we're in a great position to ride through this environment, continue to keep refinancing our businesses. And the one thing that's often being overlooked in the real estate market right now is high quality underlying assets are performing exceptionally well. The issue is on funding and liquidity as opposed to underlying operating performance and that's certainly what we're seeing in our portfolio. So you combine that strong operating performance with how we fund our businesses, we see a path to riding through this, but this is where the opportunity is created. And we mentioned that we're seeing great traction for our best rep franchises in the market. It is well positioned to take advantage in this market environment and secure some very, very attractive value entry points and that's why I think we're seeing such strong fund raising success there.

Maybe just a couple of points here is. There is no doubt that there is a little bit of stress in certain portions of the real estate market. But while that stress that temporary stress. Is a reality for some it's also an opportunity for others. And with the breadth of our real estate franchise.

There is no doubt that there is a little bit of stress in certain portions of the real estate market.

But while that stress that temporary stress. Is a reality for some it's also an opportunity for others. And with the breadth of our real estate franchise.

Is a reality for some it's also an opportunity for others. And with the breadth of our real estate franchise.

And with the breadth of our real estate franchise.

And how we fund our businesses, we're in a great position to ride through this environment continued to keep refinancing our businesses and the one thing that's often being overlooked in the real estate market right. Now is high quality underlying assets are performing exceptionally well the issue is on.

funding and liquidity as opposed to underlying operating performance and that's certainly what we're seeing in our portfolio. So you combine that strong operating performance with how we fund our businesses, we see a path to riding through this, but this is where the opportunity is created. And we mentioned that we're seeing great traction for our best rep franchises in the market. It is well positioned to take advantage in this market environment and secure some very, very attractive value entry points and that's why I think we're seeing such strong fund raising success there. The second part of your question went to asset liquidity

We see a path to riding through this. But this is where the opportunity is created and we mentioned that we're seeing great traction for our best Rep franchise Thats in the market. It is well positioned to take advantage in this market environment and secure some very very attractive value entry points and Thats why I think we're seeing such strong fund raising success there. The second part of your question went to <unk>. Asset liquidity.

But this is where the opportunity is created and we mentioned that we're seeing great traction for our best Rep franchise Thats in the market. It is well positioned to take advantage in this market environment and secure some very very attractive value entry points and Thats why I think we're seeing such strong fund raising success there. The second part of your question went to <unk>. Asset liquidity.

It is well positioned to take advantage in this market environment and secure some very very attractive value entry points and Thats why I think we're seeing such strong fund raising success there. The second part of your question went to <unk>. Asset liquidity.

The second part of your question went to <unk>. Asset liquidity.

The second part of your question went to asset liquidity and perhaps I'd make a comment that applies to real estate, but perhaps applies to all of our asset classes. Throughout 2023 interest rates were increasing but more important than them increasing was their trajectory was uncertain. And that uncertainty did not make for a robust environment for capital recycling and for monetization. What we saw across real estate as well as our other asset classes like renewable infrastructure is high quality assets of small to medium size could still received very, very attractive bids and we monetize assets across all of our platforms in that way. But what was more difficult in that environment was large scale monetization. With increasing stability in interest rates, we do see that market coming back in 2024. It will take time. It will we think accelerate throughout the year. But the good news for us is we were able to use our scale to invest in 2023 when there were very few bidders and we made the conscious decision to not force ourselves to realize assets in that market and more appropriately wait for better times. So all in all, we do see liquidity accelerating throughout 2024, not only in real estate, but across our asset classes and that's simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

Tahira: Asset liquidity.

and perhaps I'd make a comment that applies to real estate, but perhaps applies to all of our asset classes. Throughout 2023 interest rates were increasing but more important than them increasing was their trajectory was uncertain. And that uncertainty did not make for a robust environment for capital recycling and for monetization. What we saw across real estate as well as our other asset classes like renewable infrastructure is high quality assets of small to medium size could still received very, very attractive bids and we monetize assets across all of our platforms in that way. But what was more difficult in that environment was large scale monetization. With increasing stability in interest rates, we do see that market coming back in 2024. It will take time. It will we think accelerate throughout the year. But the good news for us is we were able to use our scale to invest in 2023 when there were very few bidders and we made the conscious decision to not force ourselves to realize assets in that market and more appropriately wait for better times. So all in all, we do see liquidity accelerating throughout 2024, not only in real estate, but across our asset classes and that's simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

Throughout 2023. Interest rates were increasing but more important than them increasing was their trajectory was uncertain. And that uncertainty did not make for a robust environment.

Interest rates were increasing but more important than them increasing was their trajectory was uncertain. And that uncertainty did not make for a robust environment.

And that uncertainty did not make for a robust environment.

For capital recycling and for monetization. What we saw across real estate as well as our other class asset classes like renewable and infrastructure is high quality assets are small to medium size could still received very very attractive bids and we monetize assets across all of our platforms in that way, but what was more difficult and not <unk>. <unk> was.

What we saw across real estate as well as our other class asset classes like renewable and infrastructure is high quality assets are small to medium size could still received very very attractive bids and we monetize assets across all of our platforms in that way, but what was more difficult and not <unk>. <unk> was.

<unk> was.

With increasing stability in interest rates, we do see that market coming back in 2024. It will take time. It will we think accelerate throughout the year. But the good news for us is we were able to use our scale to invest in 2023 when there were very few bidders and we made the conscious decision to not force ourselves to realize assets in that market and more appropriately wait for better times. So all in all, we do see liquidity accelerating throughout 2024, not only in real estate, but across our asset classes and that's simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

Large scale monetization with increasing stability in interest rates, we do see that market coming back in 2024. It will take time. It will we think accelerate throughout the year, but the good news for US is we were able to use our scale to invest in 2023.

When there were very few bidders and we made the conscious decision to. Not force ourselves to realize assets in that market. And more appropriately wait for better times so. All in all we do see liquidity accelerating throughout 2020 for not only in real estate, but across our asset classes and thats simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

Not force ourselves to realize assets in that market. And more appropriately wait for better times so. All in all we do see liquidity accelerating throughout 2020 for not only in real estate, but across our asset classes and thats simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

And more appropriately wait for better times so. All in all we do see liquidity accelerating throughout 2020 for not only in real estate, but across our asset classes and thats simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

All in all we do see liquidity accelerating throughout 2020 for not only in real estate, but across our asset classes and thats simply a function of the uncertainty in the market increasingly being removed as interest rates stabilize.

Kenneth Brooks Worthington: Okay, brilliant. Thank you. And maybe for Bahir, I think this is more of a clarification, credit had a substantial pickup in inflows and outflows this quarter, page 25 of the supplement and it looks like the insurance piece was a big driver of that on page seven of the supplement. Is there anything seasonal about the fourth quarter or was it Argo that really impacted the fourth quarter inflows and outflows? And as we think about the insurance contribution to your fund raising target, the $15 billion to $20 billion guide over time, is that a gross number or is that sort of a net number net of the outflows that the insurance piece kind of sees? So just trying to figure out how to think about that in the context of the longer term fund raising guidance.

25 page 25 of the supplement and it looks like the insurance piece was a big driver of that on page seven of the supplement is there anything seasonal about the fourth quarter or was it argo that really impacted the fourth quarter inflows and outflows and as we think about the insurance contribution to your fund raising target the <unk>.

$18 billion to $20 billion guide over time is that a gross number or is that sort of a net number. Net of the outflows that the insurance piece, so just trying to figure out how to think about that. In the context of the. Longer term fund raising guidance.

Net of the outflows that the insurance piece, so just trying to figure out how to think about that. In the context of the. Longer term fund raising guidance.

In the context of the. Longer term fund raising guidance.

Tahira: Longer term fund raising guidance.

Connor Teskey: Hey, Ken. You're absolutely correct. The fourth quarter insurance inflows benefited quite substantially from the Argo transaction that we spoke about. With respect to the outflows within credit, I may just want to clarify that with you after the call, but it may have been some funds that reached the end of fifth cycle, if I remember correctly. And then with respect to the last point, the 15% to 20 is a net number that we're using based on the forecast of the various platforms that we have built in our insurance business. Aside from the annuities business that gets sort of all the headlines, Brookfield reinsurance is also built up or is in the process of building up a sizable pension risk transfer business in the US. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and also are in the process of building a similar business in the UK where that market is also quite significant.

<unk>. Youre absolutely correct. The fourth quarter insurance and. Flows. Benefited. Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Youre absolutely correct. The fourth quarter insurance and. Flows. Benefited. Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

The fourth quarter insurance and. Flows. Benefited. Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Flows. Benefited. Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Benefited. Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Quite substantially from the Argo transaction. We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

We spoke about. With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

With respect to the outflows. Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Within credit. We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

We may I may just want to clarify that with you after the call, but it may have been. Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Some funds that reached the end. Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Fifth cycle, if I remember correctly, and then with respect to the loss. The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

The 15% to 20 is a net. Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Number that we're using based on. The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

The forecast of the various platforms that we have. We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

We have built in our insurance business. Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Aside from. The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

The annuities business that gets sort of all that. That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

That gets all the headlines. Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Brookfield reinsurance is also built up or is in the process of building up a. Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Sizable pension risk transfer business. In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

In the U S. It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

It started to bid on mandates at the latter part of 2023, and there is going to be considerable growth coming from that channel in 2024 and. And also are in the process of building a similar business in the UK where that market is also. Quite significant.

And also are in the process of building a similar business in the UK where that market is also. Quite significant.

Quite significant.

Kenneth Brooks Worthington: Okay, brilliant. Thank you very much.

Connor Teskey: Thanks Ken.

Operator: Thank you. Our next question will come from the line of Mario Saric with Scotiabank.

Mario Saric: Hi, good afternoon. Just two quick ones on my end. Bahir, your comment on expected outside growth in FRE in '24, is that expectation or the definition of outflow kind of is that relative to '23 actual growth or your target kind of FRE growth of 15% to 20% overtime that you outlined at the Investor Day? I just wanted to clarify kind of what you thought about when you [inaudible].

Sorry in 'twenty four. Expectation or the definition of outflow kind of is that relative to 'twenty three actual growth or your target kind of FRE growth of 15% to 20% overtime that you opened up the investors I just wanted to clarify kind of what you thought about when you cycle cost.

Expectation or the definition of outflow kind of is that relative to 'twenty three actual growth or your target kind of FRE growth of 15% to 20% overtime that you opened up the investors I just wanted to clarify kind of what you thought about when you cycle cost.

Bahir Manios: Hi, Mario. Yeah, apologies if I've confused you in terms of definitions, but we set out that 15% to 20% CAGR that we expect to deliver on from an FRE perspective over the planned period. To clarify what I meant is 2024 should exceed that target just even given all of the capital inflows that came in in 2023 that alone should be a big contributor in addition to expenses moderating as we noted and then we've got such a healthy pipeline for 2024, so that's what I really meant.

Yes, I apologize if ive. Confused in terms of. Definitions, but we set out that 15% to 20%. CAGR that we expect to deliver on from an FRE perspective over the planned period. To clarify what I meant is 2024 should be should exceed that. At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

Confused in terms of. Definitions, but we set out that 15% to 20%. CAGR that we expect to deliver on from an FRE perspective over the planned period. To clarify what I meant is 2024 should be should exceed that. At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

Definitions, but we set out that 15% to 20%. CAGR that we expect to deliver on from an FRE perspective over the planned period. To clarify what I meant is 2024 should be should exceed that. At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

CAGR that we expect to deliver on from an FRE perspective over the planned period. To clarify what I meant is 2024 should be should exceed that. At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

To clarify what I meant is 2024 should be should exceed that. At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

At target just even given. All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

Speaker Change: All of the capital inflows that came in in 2023 that alone should be a big contributor contributor. In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

In addition to. Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

Expenses moderating as we noted and then we've got such a healthy pipeline. For 2024, so thats, what I really meant.

For 2024, so thats, what I really meant.

Mario Saric: Perfect, okay. And just as a quick follow up on your commentary on the margin, coming back to 22 levels [inaudible] basis points up year over year, is that inclusive or exclusive of [inaudible] and the capital coming from them?

Coming back to 2002 levels are able colder basis points up year over year is that inclusive or exclusive. And the capital coming from them.

And the capital coming from them.

Connor Teskey: It's all in Mario. It's all inclusive.

Inclusive.

Mario Saric: Okay. And then my second question, maybe dovetailing on the previous question just in terms of 2024 transaction volumes monetization and so on, there was a comment both in the press release and in the shareholder letter kind of unrealized valuations responding [inaudible] busy transaction activity for the next few years. I think Connor you mentioned that may be a bit slow to start but it start to accelerate. Are you suggesting the expectation that valuations are expected to rise from here on in i.e kind of valuation have troughed or where do you think a narrowing in the bid ask spread will materialize resulting in lower valuation initially which will be the ultimate catalyst to reignite transaction volumes?

Maybe dovetailing on the previous question just in terms of 2020 for transaction volumes monetization and so on and there was a comment both in the press release in the shareholder letter kind of unrealized valuations responding.

Coordinator busy transaction activity for the next few years Conor you mentioned that may be a bit slow to start but it start to accelerate. Are you, suggesting the expectation that valuations are expected to rise from here on in it.

Are you, suggesting the expectation that valuations are expected to rise from here on in it.

Kind of valuation trough, where do you think a narrowing in the bid ask spread will materialize, resulting in lower valuation initially which will be the ultimate catalysts to reignite transaction volumes.

Connor Teskey: Mario, the answer to your two questions at the end is both, but perhaps I'll clarify maybe something I said a moment ago. We are already seeing transaction volumes in the early part of Q1 higher than they were in Q3 or Q4 of 2023. So while we do expect them to continue to accelerate throughout the year, we're off to a very strong start in terms of that acceleration. And really for high quality assets, I would say the bid in early 2024 has been very, very robust and what we are seeing is new year allocations, stability in interest rates, and an increasingly open financing market, really being a driver of one enhanced transaction activity and two, creating an environment that's more supportive for valuation. So the point I would make is the answer to your questions is it's both but I would highlight that it's already started, it's not something that we're only forecasting for the future. Okay. Those are my two, thank you.

Maybe something I said, a moment ago, we are already seeing transaction volumes in the early part of Q1 higher than they were in Q3 or Q4 of 2023. So while we do expect them to continue to accelerate throughout the year, we're off to a very strong start. In terms of that acceleration. It really for high quality assets I would say the bid in early 2024 has been very very robust and what we are seeing is. New year allocations stability in interest rates and an increasingly open financing market. Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

So while we do expect them to continue to accelerate throughout the year, we're off to a very strong start. In terms of that acceleration. It really for high quality assets I would say the bid in early 2024 has been very very robust and what we are seeing is. New year allocations stability in interest rates and an increasingly open financing market. Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

In terms of that acceleration. It really for high quality assets I would say the bid in early 2024 has been very very robust and what we are seeing is. New year allocations stability in interest rates and an increasingly open financing market. Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

It really for high quality assets I would say the bid in early 2024 has been very very robust and what we are seeing is. New year allocations stability in interest rates and an increasingly open financing market. Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

New year allocations stability in interest rates and an increasingly open financing market. Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

Really being a driver of one enhanced transaction activity. And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

And two. Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

Creating an environment that's more supportive for valuation so the point I would make is the answer to your questions is it both but I would highlight that it's already started it's not something that we're only forecasting for the future. Okay. Those are my two thank you.

Mario Saric: Okay. Those are my two, thank you.

Okay. Those are my two thank you.

Operator: That concludes today's question and answer session. I would like to turn the call back to Connor Teskey for closing remarks.

Connor Teskey: Great, thank you. Go ahead Jason.

Go ahead Jason.

Jason Fooks: Great. I'll just say if anyone else should have additional questions on today's release, please feel free to contact me directly. Thank you everyone for joining us and we'll see you next time.

You everyone for joining us and we'll see you next time.

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

Okay. Okay. Yes.

Okay. Yes.

Yes.

Q4 2023 Brookfield Asset Management Earnings Call

Request a DemoDemo

BN.

Brookfield

Earnings