Brookfield Asset Management has made a strategic move by relocating its head office from Toronto to New York. The purpose of this shift is to qualify for more US stock indexes and attract a wider range of investors. By moving to New York, Brookfield aims to increase its visibility among active public investors who use these indices as benchmarks.
According to Chief Financial Officer Hadley Peer Marshall, the decision to move to New York aligns with the fact that the US accounts for the largest portion of Brookfield Asset’s employees and revenue. However, despite the relocation, the company will remain incorporated in Canada. This move will not bring about any changes to the company’s operations, strategic plans, or dividend tax treatment.
In addition to the relocation, parent company Brookfield Corp. will exchange its current unlisted 73% stake in Brookfield Asset Management for publicly-traded stock. This swap involves BAM issuing Class A shares to its parent company in exchange for the shares currently held by the parent and its subsidiaries. The economic stake of Brookfield Corp. in BAM will remain the same, but the exchange aims to simplify Brookfield Asset’s structure and ensure that the publicly traded entity reflects its true value.
Shareholders of Brookfield Asset will have the opportunity to vote on the swap at a meeting scheduled for December 20th. This strategic move follows Brookfield Corp.’s decision to spin out 25% of its asset management unit into the publicly-traded BAM almost two years ago. Currently, BAM manages about $1 trillion in assets and has seen a 32% increase in its shares since the beginning of the year.
Mark Carney, who serves as the chair of Brookfield Asset Management, also holds the position of chair at Bloomberg Inc. This strategic move to New York showcases Brookfield’s commitment to expanding its reach and attracting more investors by aligning with major US stock indexes. The company’s focus on simplifying its structure and reflecting its true value through publicly traded shares demonstrates a strategic approach to growth and visibility in the financial market.
