We initiate BAM with a Buy rating and $67 PT. Brookfield Asset Management is a global alternative asset manager and REIT, investing across real estate, infrastructure, renewables, private credit, and venture capital for institutional and retail clients.

The Buy rating is predicated on three investment theses:

1. We see 2025/26 revenues materially ahead of The street ($6.1/$7.2bn vs. $5.3/$6.0bn) on back-end loaded recognition of recently closed flagship funds (Real Estate Fund V, Transition Fund II) and under-appreciated incremental fee earnings from OAK/AO GP stakes.

2. We believe the market is not appropriately valuing the accelerating fee stream and BAM's explicit fee-bearing capital doubling to $1.1tn by 2029, positioning the company to deliver outperformance regardless of near-term macro noise.

3. We value BAM at a premium 15.0x FY26E EV/Sales multiple, which is justified given the structural scale, stickiness of long-term capital, and fee resiliency, which should prove to be a better indicator of operating performance than near-term macro volatility.

While above the peer group at 6.3x, it is justified given BAM's growth profile and is at the 10-year median multiple even as we frame the macro (i.e., elevated real rates) as a headwind.

Risks include fundraising/deployment delays and elevated real rates on private market valuations, which we have modeled conservatively.

The bottom line: BAM's combination of back-loaded fee acceleration coupled with structural growth delivers an attractive R/R, making current valuation a compelling entry point for long-term investors.

Structural scale as a competitive advantage: the visibility and durability of BAM’s capital formation engine