Canadian asset manager Brookfield Asset Management (TSE:BAM) (NYSE:BAM) pulled off a decent win today, though investors weren’t exactly blown away by the notion. In fact, Brookfield is up modestly in Monday morning’s trading session thanks to a newfound partnership with Castlelake.
The agreement between the two calls for Brookfield to take 51% interest in Castlelake, but only in its “fee-related earnings.” To get that 51% stake, Brookfield put in roughly $1.5 billion, including some capital that would be invested by Brookfield Reinsurance, and placed it in some of Castlefield’s current strategies. This exchange of cash and ownership stakes will allow the two firms the ability to collaborate and find some better opportunities in the field that might have otherwise gone unnoticed.
Fingers in a Growing Range of Pies
“Opportunities in the field that might have otherwise gone unnoticed” is getting to be something of a theme at Brookfield, as just days ago, it announced a new “framework deal” with Microsoft (NASDAQ:MSFT) to sell renewable power for data center operations. Given Microsoft’s increasing push into the AI market, as well as its general presence in data centers, getting hands on the kilowatt-hours necessary to run the same was vital.
Actually, gigawatt-hours in this case, as Brookfield’s deal will supply 10.5 gigawatts from 2026 to 2030. Being able to do it with renewable power only gives Microsoft a further edge in the public relations area, and Brookfield can quietly laugh all the way to the bank in the process.
Is BAM Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BAM stock based on four Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 27.65% rally in its share price over the past year, the average BAM price target of C$63.79 per share implies 17.67% upside potential.
