Brookfield Asset Management plans to spin off its asset-management business, according to a person familiar with the matter – a step designed to simplify the organizational structure at one of the world’s largest alternative investment firms.
The new publicly traded entity will control Brookfield’s fee-generating assets, such as real estate, infrastructure, credit, private equity and renewable energy. The unit’s assets under management were $364 billion as of Dec. 31.
The move will make the Toronto-based firm “asset-light,” a model preferred by investors, as it gives it the option to buy into the asset management unit without taking a piece of its skyscrapers and gas pipelines. Earlier this year, Chief Executive Officer Bruce Flatt told investors that the asset-management unit could have an equity value of as much as $100 billion.