Latest news with #Brookfield
Business Insider
2 days ago
- Business
- Business Insider
M&A News: Brookfield Asset Management Stock (TSE:L) Slips After Buying First National Financial Corp.
It has been a big few days for asset manager stock Brookfield Asset Management (TSE:BAM). Not only did they have a major milestone recently, but they also made a big new deal to pick up First National Financial Corp. (TSE:FN). The move did Brookfield few favors with investors, though, as shares dipped fractionally in Monday morning's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Brookfield got together with Birch Hill Equity Partners and built an acquisition vehicle to take over First National. The deal was valued at around $2.9 billion, and sees the acquisition vehicle take over the funds managed by Birch Hill. Though Brookfield and Birch Hill will not take over completely, reports noted, as First National founders Stephen Smith and Moray Tawse will still have an indirect 19% interest in the company. The acquisition vehicle offered a purchase price of $48 per share, which at the time represented a 15.2% premium against the previous 30 days of trading, reports noted. It was also a figure that beat the stock's 52-week high, though not the peak share price, which was around $52 per share back in 2021. Strategic review indicated the deal would offer '…compelling value and liquidity to shareholders,' reports noted. A Win for Brookfield The dip in Brookfield's stock today may not be so much a reflection of displeasure at the First National deal, but rather, a bit of profit-taking. Just days ago, Brookfield posted an all-time share price high, reports noted, coming in at $62.66 per share US. Most of those share price gains were accomplished via one simple expedient: an excellent performance over the last year, which featured a 56.75% return at one point, reports noted. It is becoming clear to investors that Brookfield's asset management operations are delivering opportunity, and its overall strategy is bearing positive results. Is Brookfield a Good Stock to Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:BAM stock based on six Buys, four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 47.71% rally in its share price over the past year, the average BAM price target of C$84 per share implies 29.71% upside potential.
Calgary Herald
2 days ago
- Business
- Calgary Herald
With First National deal, Brookfield beefs up Canadian mortgage business in a big way
Brookfield Asset Management Ltd. is getting into the Canadian mortgage business in a big way, teaming up with Birch Hill Equity Partners Management Inc. to buy a majority stake in First National Financial Corp. in a $2.9-billion transaction. Article content Brookfield is already a significant player in mortgage insurance, following its 2019 purchase of a majority stake in Genworth MI Canada. The balance of Genworth, now called Sagen Mortgage Insurance Co. Canada, was purchased the following year. Article content Article content First National underwrites and services mostly prime residential — single-family, multi-unit — and commercial mortgages. With more than $155 billion in mortgages under administration, it is one of Canada's largest non-bank mortgage originators. Article content Brookfield's strategy of pursuing growth in the non-bank mortgage segment of private credit goes beyond the potential to integrate mortgage lending and insurance in Canada. The global asset manager has already expanded into the United States with the spring purchase of New York-based mortgage lender Angel Oak Cos. LP. Article content Over the past decade, Angel Oak has originated more than US$30 billion in residential mortgage loans and issued over 60 securitizations, a pace that was expected to accelerate as a result of 'growth in borrower segments that are underserved by traditional lenders,' Brookfield said in April. Article content Article content Brookfield's growing credit division, which encompasses partnerships with industry players such as Oaktree Capital Management Inc. and 17Capital LLP, already manages more than $300 billion of assets globally. Article content Article content The division focuses on a range of private credit investment strategies, including infrastructure, renewables, real estate, asset-backed and corporate credit, with return profiles spanning investment grade, sub-investment grade and opportunistic. Article content 'Generally, Brookfield seeks to leverage the ecosystem to drive upside for any of their portfolio companies,' said Jaeme Gloyn, an analyst at National Bank of Canada. Article content However, he said there are elements in the latest deal that will put some limits on the integration of mortgage underwriting and insurance in Canada. For one thing, Stephen Smith, First National's co-founder and one of its controlling shareholders — who will remain a minority indirect shareholder in First National after the transaction closes — is also an owner of Canada Guaranty Mortgage Insurance Co., the country's other large mortgage insurer that competes with Genworth/Sagen.
Los Angeles Times
2 days ago
- Business
- Los Angeles Times
Fontana Industrial Portfolio Acquired for $83.5 Million
Bridge Logistics Properties, a subsidiary of Bridge Investment Group Holdings Inc., acquired a recently constructed, three-building, industrial portfolio in Fontana for $83.5 million, or $251 per square foot. The 332,793-square-foot portfolio was acquired due to its proximity to dense population centers where there is limited new supply. 'Local municipal headwinds, AB 98, and general land scarcity are causing significant barriers to new development. Once economic conditions stabilize and tenant demand normalizes, we believe we will see value appreciation for existing assets,' said Paul Jones, managing director of Bridge Logistics Properties, in a statement. The company was founded in 2021 and now has more than 16 million square feet under management. It was founded by industrial real estate veterans with prior tenure at Brookfield, Prologis, IDI Logistics, Duke Realty, Hines and KTR Partners. Information for this article was sourced from Bridge Logistics Partners.
Calgary Herald
2 days ago
- Business
- Calgary Herald
Brookfield beefs up Canadian mortgage business with First National deal
Brookfield Asset Management Ltd. is getting into the Canadian mortgage business in a big way, teaming up with Birch Hill Equity Partners Management Inc. to buy a majority stake in First National Financial Corp. in a $2.9-billion transaction. Article content Brookfield is already a significant player in mortgage insurance, following its 2019 purchase of a majority stake in Genworth MI Canada. The balance of Genworth, now called Sagen Mortgage Insurance Co. Canada, was purchased the following year. Article content Article content Article content First National underwrites and services mostly prime residential — single-family, multi-unit — and commercial mortgages. With more than $155 billion in mortgages under administration, it is one of Canada's largest non-bank mortgage originators. Article content Article content Brookfield's strategy of pursuing growth in the non-bank mortgage segment of private credit goes beyond the potential to integrate mortgage lending and insurance in Canada. The global asset manager has already expanded into the United States with the spring purchase of New York-based mortgage lender Angel Oak Cos. LP. Article content Over the past decade, Angel Oak has originated more than US$30 billion in residential mortgage loans and issued over 60 securitizations, a pace that was expected to accelerate as a result of 'growth in borrower segments that are underserved by traditional lenders,' Brookfield said in April. Article content Article content Brookfield's growing credit division, which encompasses partnerships with industry players such as Oaktree Capital Management Inc. and 17Capital LLP, already manages more than $300 billion of assets globally. Article content Article content The division focuses on a range of private credit investment strategies, including infrastructure, renewables, real estate, asset-backed and corporate credit, with return profiles spanning investment grade, sub-investment grade and opportunistic. Article content 'Generally, Brookfield seeks to leverage the ecosystem to drive upside for any of their portfolio companies,' said Jaeme Gloyn, an analyst at National Bank of Canada. Article content However, he said there are elements in the latest deal that will put some limits on the integration of mortgage underwriting and insurance in Canada. For one thing, Stephen Smith, First National's founder and one of its controlling shareholders — who will remain a minority indirect shareholder in First National after the transaction closes — is also an owner of Canada Guaranty Mortgage Insurance Co., the country's other large mortgage insurer that competes with Genworth/Sagen.
Vancouver Sun
2 days ago
- Business
- Vancouver Sun
Brookfield beefs up Canadian mortgage business with First National deal
Brookfield Asset Management Ltd. is getting into the Canadian mortgage business in a big way, teaming up with Birch Hill Equity Partners Management Inc. to buy a majority stake in First National Financial Corp. in a $2.9-billion transaction. Brookfield is already a significant player in mortgage insurance, following its 2019 purchase of a majority stake in Genworth MI Canada. The balance of Genworth, now called Sagen Mortgage Insurance Co. Canada, was purchased the following year. First National underwrites and services mostly prime residential — single-family, multi-unit — and commercial mortgages. With more than $155 billion in mortgages under administration, it is one of Canada's largest non-bank mortgage originators. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Brookfield's strategy of pursuing growth in the non-bank mortgage segment of private credit goes beyond the potential to integrate mortgage lending and insurance in Canada. The global asset manager has already expanded into the United States with the spring purchase of New York-based mortgage lender Angel Oak Cos. LP. Over the past decade, Angel Oak has originated more than US$30 billion in residential mortgage loans and issued over 60 securitizations, a pace that was expected to accelerate as a result of 'growth in borrower segments that are underserved by traditional lenders,' Brookfield said in April. Brookfield's growing credit division, which encompasses partnerships with industry players such as Oaktree Capital Management Inc. and 17Capital LLP, already manages more than $300 billion of assets globally. The division focuses on a range of private credit investment strategies, including infrastructure, renewables, real estate, asset-backed and corporate credit, with return profiles spanning investment grade, sub-investment grade and opportunistic. 'Generally, Brookfield seeks to leverage the ecosystem to drive upside for any of their portfolio companies,' said Jaeme Gloyn, an analyst at National Bank of Canada. However, he said there are elements in the latest deal that will put some limits on the integration of mortgage underwriting and insurance in Canada. For one thing, Stephen Smith, First National's founder and one of its controlling shareholders — who will remain a minority indirect shareholder in First National after the transaction closes — is also an owner of Canada Guaranty Mortgage Insurance Co., the country's other large mortgage insurer that competes with Genworth/Sagen. Gloyn also said First National is being purchased by private-equity funds managed by Brookfield Asset Management, while Genworth/Sagen is owned by another unit, Brookfield Business Partners. 'I would not expect concerns regarding competition,' he said. After the close of the First National transaction, expected in the fourth quarter, Brookfield and Birch Hill will own about 62 per cent of the company. The mortgage lender's controlling shareholders, Smith and Moray Tawse, will each retain an indirect holding of 19 per cent. The purchase price of $48 a share represents a 22.8 per cent premium to the volume-weighted average trading price over the 90 days leading up to the purchase announcement. Private-equity funds managed by Brookfield and Birch Hill emerged as the buyers following a strategic review conducted by First National. 'Outreach to a broad pool of potential buyers (resulted in) … several acquisition proposals that fell below the Birch Hill and Brookfield offer,' Gloyn said in a note on Monday. Jason Ellis, First National's chief executive, is expected to remain in place after the transaction closes, along with his leadership team. • Email: bshecter@
