Core Insights - Brookfield Asset Management announced an investment of up to SEK 95 billion ($10 billion) to develop AI infrastructure in Sweden, marking one of its largest AI investments in Europe and strengthening its partnership with the Swedish government and local entities [1][2][3] Investment Details - The investment will focus on a new AI center in Strängnäs, Sweden, which will support the national AI strategy and significantly increase the data center's capacity from 300MW to 750MW by acquiring approximately 350,000 sqm of additional land [2][3] - The new facility is expected to create over 1,000 permanent jobs and an additional 2,000 jobs during the 10-15 year construction period, making it the first of its kind in Sweden and one of the first in Europe [2][3] Strategic Importance - The investment is part of Brookfield's broader strategy to enhance AI infrastructure, which includes not only data centers but also data transfer, chip storage, and energy generation, aimed at boosting sovereign compute capabilities for both public and private sectors in Europe [3] - Brookfield has invested over €100 billion globally in the AI value chain, including a recent €20 billion infrastructure investment program in France, which features a €10 billion investment in the first AI factory in the country [3] Historical Context - Brookfield has been actively investing in Sweden since 2018, with a diverse portfolio that includes telecom towers, renewable power, social infrastructure, and logistics assets [4]

Core Viewpoint - The analysis compares Grupo Financiero Banorte SAB de CV (GBOOY) and Brookfield Asset Management (BAM) to determine which stock is more attractive to value investors [1] Valuation Metrics - GBOOY has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while BAM has a Zacks Rank of 3 (Hold) [3] - GBOOY's forward P/E ratio is 8.03, significantly lower than BAM's forward P/E of 33.93 [5] - GBOOY has a PEG ratio of 0.94, compared to BAM's PEG ratio of 2.03, suggesting GBOOY is more favorably valued in terms of expected earnings growth [5] - GBOOY's P/B ratio is 1.82, while BAM's P/B ratio is 10.25, further indicating GBOOY's relative undervaluation [6] - GBOOY earns a Value grade of A, whereas BAM receives a Value grade of F, highlighting GBOOY's stronger valuation metrics [6] Conclusion - GBOOY is positioned as the superior value option due to its solid earnings outlook and favorable valuation figures compared to BAM [7]

Core Viewpoint - Grupo Financiero Banorte SAB de CV (GBOOY) is currently viewed as a better value opportunity compared to Brookfield Asset Management (BAM) based on various valuation metrics and earnings outlook [1]. Valuation Metrics - GBOOY has a forward P/E ratio of 8.12, significantly lower than BAM's forward P/E of 35.75, indicating that GBOOY is undervalued relative to BAM [5]. - The PEG ratio for GBOOY is 0.95, while BAM's PEG ratio stands at 2.19, suggesting that GBOOY offers better value when considering expected earnings growth [5]. - GBOOY's P/B ratio is 1.82, compared to BAM's P/B of 10.76, further highlighting GBOOY's relative undervaluation [6]. Earnings Outlook - GBOOY is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7].

Financial Performance - Total revenues for Q1 2025 reached $1,081 million, a 22% increase from $884 million in Q1 2024[23] - Net income attributable to common stockholders was $581 million in Q1 2025, up 32% from $441 million in Q1 2024[23] - Comprehensive income attributable to common stockholders was $595 million in Q1 2025, compared to $439 million in Q1 2024, indicating a 35.6% increase[26] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024[30] - The net income for the three months ended March 31, 2025, was $580 million, compared to $440 million for the same period in 2024, resulting in basic and diluted earnings per share of $0.36[142] - Total Segment Revenues for Q1 2025 reached $1,154 million, compared to $999 million in Q1 2024, indicating a year-over-year increase of 15.5%[193] - Segment Earnings for Q1 2025 amounted to $576 million, compared to $474 million in Q1 2024, showing an increase of 21.5%[200] Assets and Liabilities - Total assets as of March 31, 2025, were $14,966 million, up from $14,157 million at the end of 2024, representing a 5.7% increase[22] - Total liabilities increased to $4,073 million as of March 31, 2025, compared to $2,966 million at the end of 2024, marking a 37.4% rise[22] - Cash and cash equivalents decreased to $332 million as of March 31, 2025, down from $404 million at the end of 2024, a decline of 17.8%[22] - The company’s retained deficit increased to $617 million as of March 31, 2025, compared to $488 million at the end of 2024[22] - Non-controlling interest in consolidated entities rose to $467 million as of March 31, 2025, up from $336 million at the end of 2024[22] Revenue Streams - Base management and advisory fees increased to $837 million, compared to $680 million in the same period last year, reflecting a 23% growth[23] - The company reported a carried interest allocation compensation of $146 million in Q1 2025, up from $84 million in Q1 2024[23] - Distributions to common stockholders increased to $707 million in Q1 2025 from $620 million in Q1 2024[30] - Total cash flow from operating activities was $265 million in Q1 2025, compared to $516 million in Q1 2024[30] - Other revenues include performance fees and are recognized on a gross basis as the instruments vest[66] Investments and Acquisitions - The company completed a corporate arrangement with Brookfield Corporation, acquiring a 73% interest in Brookfield Asset Management ULC[35] - The total purchase consideration for the 2025 Arrangement was $33 million, with BAM issuing approximately 1,194 million Class A Shares valued at $57.13 each[106] - BAM recognized a gain of $15 million from the disposal of its interest in Redwood Evergreen Fund LP during Q1 2025[116] - The fair value of intangible assets identified in the 2025 Arrangement was assessed at $215 million, including $57 million of deferred tax amounts[111] - The Company agreed to acquire a 50.1% stake in Angel Oak Companies for $145 million[205] Debt and Financing - The Company established a $750 million five-year revolving credit facility on August 29, 2024, to enhance liquidity[135] - As of March 31, 2025, BAM's total corporate borrowings amounted to $235 million, with revolving credit facilities having a capacity of $750 million and an average interest rate of 5.4%[137] - The Company completed its inaugural debt offering, raising approximately $750 million of 10-year bonds at a fixed rate of 5.795%[206] Market Conditions - U.S. GDP contracted by 0.3% for Q1 2025, down from a 2.4% expansion in Q4 2024, with an estimated slowdown to 1.8% growth for 2025[217] - U.S. inflation rate decreased to 2.4% as of March 31, 2025, compared to 2.9% at the end of 2024[217] - The U.S. unemployment rate remained stable between 4.0% and 4.2% during the first three months of 2025[217] - The U.S. Federal Reserve maintained a benchmark interest rate target range of 4.25% to 4.50% as of Q1 2025[218] - The S&P 500 index decreased by 4.6% during Q1 2025, while the MSCI Europe Index increased by 5.2%[220]

Financial Performance - Fee-related earnings increased by 26% year-over-year to $698 million, or $0.43 per share, driven by over $140 billion of capital raised in the past twelve months [3][8] - Distributable earnings rose by 20% to $654 million, or $0.40 per share, compared to the prior year period, primarily due to growth in fee-related earnings [4][8] - Total revenues for the quarter reached $1.081 billion, up from $884 million in the prior year, with management and incentive fee revenues increasing to $954 million [18] - Net income attributable to BAM for the quarter was $581 million, a 32% increase from the prior year period, primarily due to growth in fee-related earnings [4][21] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024 [22] - Fee-Related Earnings (FRE) reached $698 million, up 26% from $552 million in the same quarter last year [22] - Distributable Earnings (DE) amounted to $654 million, compared to $547 million in Q1 2024, reflecting a 19% growth [22] Capital and Fund Management - Fee-bearing capital grew to $549 billion, reflecting a $90 billion increase or 20% over the last twelve months [6][7] - The company raised $25 billion in the first quarter of 2025 across various strategies, including $7.1 billion in real estate and $14 billion in credit [9] - The flagship real estate strategy reached $16 billion, making it the largest real estate strategy ever raised by the company [2][9] - The company has $119 billion of uncalled fund commitments, which will generate approximately $520 million in fees annually once deployed [12] - A majority stake acquisition in Angel Oak, a mortgage and consumer products platform with over $18 billion in assets, is expected to enhance the company's credit capabilities [13] Liquidity and Financial Position - The company completed a bond offering of $750 million, improving its liquidity position and receiving an "A" credit rating from Fitch [12] - Interest expense paid to related parties rose to $13 million, up from $4 million in the previous year [22] Tax and Allocations - The provision for taxes increased to $75 million from $71 million year-over-year [22] - Carried interest allocations decreased significantly from $123 million in Q1 2024 to a negative $2 million in Q1 2025 [22] Investment Management - The company manages over $1 trillion in assets across various sectors, including renewable power and infrastructure [28] - Share of income from equity method investments improved to a loss of $58 million from a loss of $80 million year-over-year [22] Strategic Focus - The company emphasizes the importance of Fee-Related Earnings and Distributable Earnings as key performance measures [32][33] - Future outlook includes a focus on maintaining strong returns and managing risks associated with economic conditions and investment strategies [37][39]

Core Insights - Brookfield Asset Management reported a 26% year-over-year increase in fee-related earnings, reaching nearly $700 million for the quarter ended March 31, 2025, driven by significant capital inflows [1][3][8] - The company raised $25 billion in capital during the first quarter and over $140 billion in the past year, highlighting strong fundraising efforts across various strategies [1][9] - The flagship real estate strategy saw inflows of $6 billion, bringing its total size to approximately $16 billion, making it the largest real estate strategy ever raised by the company [1][2][9] Financial Performance - Fee-related earnings (FRE) for the quarter were $698 million, or $0.43 per share, compared to $552 million, or $0.34 per share, in the prior year [3][8] - Distributable earnings (DE) increased by 20% to $654 million, or $0.40 per share, from $547 million, or $0.34 per share, year-over-year [3][8] - Net income attributable to Brookfield Asset Management was $581 million for the quarter, up 32% from the previous year [3][8] Fundraising and Capital Deployment - The company raised $25 billion in the first quarter of 2025, with notable contributions from various sectors including real estate, private equity, and credit [9] - Significant capital deployments included $16 billion in the first quarter, with $3.5 billion in renewable power and transition, and $1.1 billion in private equity [9][10] - The company has nearly $120 billion of capital available for deployment, positioning it well for future investments [2][9] Strategic Initiatives - Brookfield Asset Management is expanding its partnerships and enhancing its credit capabilities to better serve clients [12] - The company announced an agreement to acquire a majority stake in Angel Oak, enhancing its capabilities in the U.S. mortgage credit market [13] - The firm increased its ownership interest in Oaktree by 1.5%, bringing its total stake to 74% [13]

Group 1 - Brookfield Asset Management Ltd. announced the election of all 12 nominees to the board of directors at the annual meeting held on May 5, 2025 [1] - The voting results showed high approval rates for the nominees, with Angela F. Braly receiving 99.98% of votes in favor [2] - The company manages over $1 trillion in assets across various sectors including renewable power, infrastructure, private equity, real estate, and credit [4] Group 2 - The detailed voting results indicate that Barry Blattman received 98.06% approval, while other nominees also received similarly high percentages, reflecting strong shareholder support [2][5] - The meeting allowed for virtual attendance, indicating a modern approach to shareholder engagement [1] - Brookfield's investment strategy focuses on long-term value generation through real assets and essential service businesses [4]

Core Viewpoint - Brookfield Asset Management Ltd. has announced the pricing of its inaugural public offering of senior notes, amounting to $750 million with a 5.795% interest rate, due in 2035 [1][2]. Group 1: Offering Details - The offering consists of senior notes with a principal amount of $750 million, set to mature in 2035 and bearing an interest rate of 5.795% per annum [1]. - The net proceeds from the sale of the notes will be allocated for general corporate purposes [2]. - The offering is expected to close on April 24, 2025, pending customary closing conditions [2]. Group 2: Regulatory and Documentation - The notes are being offered under BAM's existing amended and restated base shelf prospectus filed in both the United States and Canada [3]. - In the U.S., the offering is made pursuant to an effective registration statement on Form F-10 filed with the U.S. Securities and Exchange Commission [3]. - Interested parties can access the relevant documents for free on EDGAR and SEDAR+ [3]. Group 3: Company Overview - Brookfield Asset Management Ltd. is a leading global alternative asset manager, headquartered in New York, managing over $1 trillion in assets across various sectors including renewable power, infrastructure, private equity, real estate, and credit [5]. - The company focuses on long-term investments in real assets and essential service businesses that are fundamental to the global economy [5]. - BAM offers a range of alternative investment products to a diverse clientele, including public and private pension plans, endowments, sovereign wealth funds, and private wealth investors [5].

Core Insights - Investors are evaluating XP Inc.A and Brookfield Asset Management for potential undervalued stock opportunities [1] - A strong Zacks Rank combined with a high Value grade is identified as an effective strategy for finding value stocks [2] Company Analysis - XP Inc.A has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to Brookfield Asset Management, which has a Zacks Rank of 4 (Sell) [3] - Value investors utilize various traditional metrics to identify undervalued companies [3] Valuation Metrics - XP has a forward P/E ratio of 8.46, significantly lower than Brookfield's forward P/E of 28.72 [5] - The PEG ratio for XP is 0.60, while Brookfield's PEG ratio is 1.81, suggesting XP is expected to grow earnings at a better rate relative to its price [5] - XP's P/B ratio stands at 2.02, compared to Brookfield's P/B of 6.15, further indicating XP's relative undervaluation [6] - XP's overall Value grade is A, while Brookfield's Value grade is F, reinforcing the perception that XP is the more attractive investment option [6]

Core Viewpoint - Brookfield Asset Management has established a new Investment Solutions Group (ISG) to provide tailored multi-asset portfolio solutions, led by Alper Daglioglu, with Howard Marks serving as Chair [1][2][4]. Group 1: Company Overview - Brookfield Asset Management is a leading global alternative asset manager headquartered in New York, managing over $1 trillion in assets across various sectors including renewable power, infrastructure, private equity, real estate, and credit [5]. - The firm focuses on long-term investments in real assets and essential service businesses that are critical to the global economy [5]. Group 2: Investment Solutions Group (ISG) - The newly formed ISG aims to deliver innovative multi-asset solutions to institutional, private wealth, and family office clients globally [2]. - ISG will leverage Brookfield's comprehensive investment capabilities and those of its partner firms, including Oaktree, Castlelake, Primary Wave, and Pinegrove Capital Partners [2]. Group 3: Leadership and Strategic Vision - Alper Daglioglu, with over two decades of experience at Morgan Stanley, has been appointed as the Head of ISG, emphasizing the importance of multi-strategy portfolio solutions [3][4]. - Howard Marks highlighted the significance of asset managers providing multi-strategy solutions rather than focusing solely on single investment products, indicating Daglioglu's suitability for this role [4]. - David Levi, CEO of Brookfield's Global Client Group, noted a growing trend among clients to work with fewer managers for deeper partnerships and better insights, which ISG aims to address [4].