Brookfield Corporation (BIP) Earnings Call Transcript & Summary

Please welcome from Brookfield Asset Management, Jason Fooks, Managing Director and Head of Public Investor Relations.

Good morning, and welcome. It is fantastic to see so many familiar faces back again this year for Brookfield Asset Management's 2024 Investor Day. On behalf of our entire management team, thank you for joining us. We appreciate your continued interest and partnership. We have a great agenda lined up today. So let's dive in. First, our CEO, Bruce Flatt, will begin by discussing the foundation we've built as an asset manager, since the launch of our first private fund just 25 years ago. and the formula that has driven success and continues to position us well today for the future. Then Connor Teskey, our President, will discuss how we'll utilize this position and capabilities across the Brookfield ecosystem to double our business from here. Following that, David Levi, CEO of our Global Client Group, will walk through our diverse fundraising channels and strategies for how we're going to deepen and strengthen our client relationships. And Hadley Peer Marshall, CFO, will bring it all together and discuss our 5-year financial plan. Now I know many of you were with us last year for our Investor Day and in true Brookfield fashion, we've listened to our shareholders. That's right, we've heard you. And so this year, we're adding something that we think everyone will appreciate, a break, all right? So you'll have some time to stretch your legs and recharge. But after the break, we'll dive into our platforms, what you'll hear about the opportunities we're capitalizing on in today's market across our business groups. Leaders from each of our business groups will share how we're deploying capital, sourcing deals and driving exceptional returns. And finally, Craig Noble, CEO of our Credit Group will close the day with a panel discussion on the current market environment and the tremendous growth opportunities we see ahead in credit. A few housekeeping notes. We'll save questions for the end of BAM's presentation. We'll be happy to take questions from our live and virtual audiences. For those in the room, just wait for the mic to reach you so everyone can hear your question clearly. And as always, I'd like to remind you that during the Q&A and throughout today's discussions will make forward-looking statements. These statements are predictions about future events and trends and are subject to risks and uncertainties. Actual results may differ materially from those we discuss today. For further details, please refer to our filings with securities regulators in Canada and the U.S. and the cautionary statements contained in our presentation, which are also available on our website. And with that, please silence your phones, sit back and enjoy the presentations. Let's welcome Bruce Flatt.

Good morning, everyone. Thank you all for being here. For those who came from close or far, thank you. We really appreciate your interest in Brookfield, and we hope we can make your time worthwhile today. Maybe the thing that I'm going to start off with, which may be the most important thing at this point in time in the markets is that for our business and for many businesses like us, the tailwinds of the sector are turning much more positive. And it's been a good couple of years for us. We've had tremendous success, but there were headwinds in the markets. And the environment we're in today has moved with tailwinds with more capital market activity, driven by lending activity coming back and driven by interest rates starting to come down over the next couple of years. So with that, I'll just reflect on the business today. This business has grown over the last 25 years, as Jason said, it now is a $70 billion company with $2.2 billion of fee-related earnings. Just over $500 billion of fee-bearing capital, 2,400 investment people and 240,000 operating employees that help us deliver returns to our investors at the high end of what we promised them. And that's really all we try to do on a day-to-day basis. What brought us here was a long history of a company, but the most -- the current business we launched in 1995, it's been a methodical building of the business over that time. And in a minute, Connor is going to tell you about what we're planning on for the next 25 years. The past 20 years, on a macro basis for this sector, leaving aside the things in the current environment, but the macro basis has been extremely positive. And essentially, when we started out, there was $2 trillion in alternatives. And today, that's $25 trillion. And what's happened is the wealth in the world has been pushing money into alternatives because of the returns you can get and the resiliency of many of these products. And it's as simple as that. So we've had a very good environment. We're going to tell you about why it should continue. Within that environment, our heritage has been that we always try to build businesses and run these operations as good as one possible can run. And I think one of the messages we'd like to leave you with is that that's now more important than ever, operating these businesses well. But it's pretty simple what we try to do. We try to pick relatively good sectors, which have trends with them. We raise capital, we invest the money. We try to operate the business as well. And by in large, we can then earn returns which exceed what we promise people for the risk that we take. And it's as simple as that. And maybe just taking them in order. When we're picking the sectors and we look at them, over the years, there has been many things that we've invested in. And we always -- the tagline that we've always operated with as we run, we operate, we build we buy the backbone of the global economy. But when we look back over the 25 years, the backbone of the global economy continues to evolve, and we have to evolve with it. So years ago, and it still is, but years ago, most of our money went into railroads and ports and hydro and pipelines. And today, it's going into telecom towers and data centers and solar and batteries and nuclear and logistics and housing and hospitality. And most of those things on the right-hand side, most of those things actually didn't exist 25 years ago as an investment asset class for private investors. And that's what's changed over the years, and we continue to have to evolve with the investment environment. So we always invest in the backbone of the global economy. But I think the most important thing to note is that it always changes. Second, we raised capital and our access to capital is almost unparalleled in the world. We have access to many different forms. We spent a lot of time over the years being methodical about it. But we have very large long-standing relationships with institutional clients around the world. It's very diverse and global and that proved its worth over the last 24 months and our access to the capital that Brookfield Corporation has gives us a special advantage versus many of our peers. On the investment side, what we're always trying to do is to identify businesses with secular trends assess an opportunity do we buy or do we build, leverage our ecosystem to give us information that most others don't have. And then over time, scale by buying or building businesses. Sometimes, we actually build the -- sometimes we build the businesses within our enterprise. And on this slide, you can see our renewables business over the last many years, we've built a business for -- we created a flagship transition fund that came out of infrastructure. We've now tacked on an emerging markets catalytic transition fund, we're building out a renewables -- we've built out a renewable side car on a global basis. We continue to push into credit opportunities around renewables. So we're taking the expertise we have and continuously diversifying the investment products we have for clients. On the other hand, sometimes we buy. And we decided early on in credit that our credit business wasn't scalable. It wasn't big enough for our clients that need large-scale products around the world. So we partnered with Oaktree. We now own just under 75% of the business it's fed and insurance platform, private wealth and a number of other partnerships that we've built within the business. But one must always -- some people can buy businesses, some people can leverage businesses. But one, the real value that gets created is to operate business as well. And our DNA in the organization has been as an owner operator and a builder of these businesses. It gives with our bottom-up intelligence that gives us knowledge that most organizations don't have. And it's enabled by a structure of decentralized teams and an organization that's allowed us to do that. And that really has been one of the differentiators of Brookfield over the years. Our operating culture has allowed that to succeed. And our values and many of you know this, but are to be very disciplined to be entrepreneurial, but to be very collaborative across the organization. And our approach as owner operators with a long-term view and a focus on operational excellence has allowed those things to succeed over the years, and we want to continue to do that. What that's allowed us to do is to achieve returns which are at the upper end of most similar investors like us in the industry. And you can see on this slide, the gross and the net IRRs in our flagship strategies over decades. And our clients come to us because we take care of them and we offer them things and we bring them big products, and we have diverse businesses, and we offer them lots of different things within our structure. But most of the reason they come to us is because they earn high returns for the risk that we take within the business, and that's the lifeblood of any investment firm. And over time, what happens is that as you raise money and as you operate the business as well and as you deliver high returns. And as you return capital to investors, they come back for more. And it's a circular exercise, and therefore, the repeat customers, and David Levi is going to talk later about our fundraising efforts, but the repeat customers coming back, they've come back because of success. And it's a virtual circle, and that's one of the moats that we have within this franchise. So before I turn it over to Connor, I'd just leave you really with 3 takeaways upfront. And then the team is going to talk about the business. But we have a long history of operating businesses, and that sets us apart from many similar groups like us. We have a growth model which should continue well into the future. And there are tremendous opportunities for us to expand the franchise grow the moat, build other businesses, tack on things adjacent to our strategies, and we think we're really just getting started. So with that, I'm going to turn it over to Connor, and he's going to talk about how we doubled the size of the business over the next while.

Good morning. Now the best part about what Bruce just said is not the success that's been delivered over the last 25 years, but rather how it positions us for the future. Most importantly, we have a business model that allows us to consistently deliver very attractive risk-adjusted returns for LP partners. But equally importantly, we have a leadership position in the most important and fastest-growing sectors of the alternatives market. And we have a business model that allows us to access the largest pools of capital being allocated to alternatives and turn around and deploy that capital into the largest investment trends on a global basis. And because of that, we expect to double the size of our business in less than 5 years. Said another way, everything we've built in the last 25 years, we expect to build again in less than 5 years going forward. And on the slide, you can see we define building our business in terms of the quantum of assets that we invest in and manage on behalf of our LP partners. But if we can double the size of the business in that aspect, we should more than double our cash flows and profits due to the inherent operating leverage in our business model. And the path to doing this is simple. It's laid out in front of us. about half that growth will come from our most established and most mature strategies. The other half will come from newer sources of growth that already exist within our business but are currently scaling rapidly off a lower base. Now it's easy to jump to the conclusion that the first bucket is about execution, and the second bucket is a bit more speculative. But the reality is we have been delivering growth in both these avenues for more than 20 years and that is what gives us confidence about our forecast. And the market opportunity is certainly there to support that growth ambition. The alternatives market is going to grow 2.5x in the next 10 years. Or said another way, over the next decade, the alternatives market is going to grow more than it has in the past 20 years combined. And that's all fine and good, but it's particularly important through the eyes of Brookfield Asset Management that has a leadership position in the fastest-growing largest and most important sectors in that alternatives market. We have an undisputed leadership position in infrastructure renewables and transition. We have leading global platforms in credit and real estate. And we have one of, if not the highest performing track record among flagship PE funds in the industry. We are as well positioned as anyone to capture that upcoming industry growth. And while each of these individual levers will grow in a somewhat linear fashion, when compounding together, they have a multiplier effect that should allow us to grow our business at something along the lines of a 20% CAGR going forward. And this brings us to what we feel is an underappreciated aspect of our business, which is that we have a business model that is not only well set up to support this growth, but actually enable it going forward. Our business model has evolved over the last 20 years, always adapting to the market opportunity in front of it. But that evolution has always been guided with the view of raising and deploying capital effectively at scale. Our asset management business started by looking to source institutional capital that could be invested alongside Brookfield's own money. But has since expanded to include accessing all the largest and deepest pools of capital that are now being allocated to alternatives. And not only the ones that are the largest pools of capital today but ones that will become increasingly important as we go forward. What this ensures is that on a continuous basis, and as we have just done, we are positioning the business for yet another step change in terms of organic growth. And today, we're well positioned in 3 different ways. We have one of the largest and most diverse institutional fundraising capabilities, which ensures we can raise capital across economic cycles. Secondly, through our public affiliates, we have turned the public markets into a true perpetual capital LP in our private funds. And 3, we have built out leading platforms to access both the retail wealth investor as well as the insurance channel. In fact, we've built out these platforms in just the last 3 to 4 years, and today, they represent over $100 billion of our capital. And all that fundraising capability needs to be matched by a deployment capability. But again, here, we are well positioned with a leadership position in the fastest-growing portions of the alternative markets, the ones that have the greatest need for private capital and are generating the most significant amount of interest from investors. And all these growth levers are things that we've been consistently doing for years. In fact, we believe we are at the early stage in the infancy in capturing some of these market opportunities. And in the case of things like retail and insurance, we've only recently put those dollars in the ground to invest in platforms that will now pay large and growing dividends going forward. It can't be understated how much easier it is to grow scale, diversify your platform going forward if you already have a base from which to do from and the leadership position to leverage. It's easier to grow in retail or insurance, if you already have the platform in place. It's easier to launch a new product if you already have a track record of successfully investing in that theme or that trend even before it was large enough to warrant a dedicated strategy. And our history and background of growing through both organic growth, building things within our business, or selectively buying ensures that as we look to capture these new growth opportunities, we can always do it in the most cost-effective manner. So as mentioned, we expect about half the doubling to come from our most established strategies, in particular, from institutional capital and the public markets through our listed affiliates. The other half is going to come from newer sources of growth, but the important thing to reiterate here is in all those cases, those platforms already exist today within the business, and they are rapidly scaling an increasingly marginal -- or increasingly productive marginal returns. But before we get into some of those newer growth opportunities, it's important to reiterate what continues to be the largest driver of our business, institutional fundraising has been that way in the past will continue to be that way in the future. And there's 2 things to highlight here. Our business, while market-leading and very mature is still in the early-to-mid innings of its growth profile and even its most prominent strategies. This is derived from the fact that our asset management business has really only been scaling rapidly over the last 10 to 15 years. And versus our peers, we are actually a bit younger. An example of this is our flagship infrastructure fund. We are currently in the process of monetizing the final few investments in our first-ever flagship infrastructure fund. At the same time, we've recently just raised and are now deploying the on-the-run version of that fund that is 10x bigger than the fund we are monetizing. What this means is even if our fund sizes were to plateau, which they are not going to do. We have over a decade of embedded growth within our business as the newer funds we raise are larger than the ones we monetize. And again, that assumes we don't increase the size of our funds, and we don't raise new products neither of which is going to happen. The other important thing about our institutional fundraising capability is at scale, but more importantly, it's diversity across both geographies and products. It's not lost upon us that from time to time, there are dynamics that in certain markets create headwinds in certain regions or for certain asset classes. We are deeply aware of those dynamics, but in a way somewhat insulated from them because we can offset any of those headwinds by raising more capital in a different region or a different asset class therefore, allowing us to raise significant sums of capital regardless of market conditions. And perhaps it's that strength in institutional fundraising that maybe has caused us not to explain the efforts we have made to access the retail wealth investor. Starting in 2021, in partnership with Oaktree, we created a platform with the sole purpose of growing our access to capital from the retail wealth channel. And the results have been tremendous, and we're really only scratching the surface. In fact, in 2023, more than 15% of our fund capital came from the retail wealth channel, and we expect that number to only increase going forward. The access to fundraising and the efforts there has been equally matched by development of products that are specifically designed for the retail investor. In fact, in particular, in our credit and infrastructure asset classes, our retail products are so successful that they are being restricted only by our level of deployment, where we continue to be disciplined, and we are, in fact, restraining capital inflows. We believe that this business can grow at a CAGR of 30% to 50% in the coming years, driven by not only increasing our fundraising, but the development of new products and in fact, putting entirely new verticals onto our private wealth channel, capturing what is a growing allocation from retail wealth into alternatives. Our growth in insurance has been perhaps a little bit more obvious. For years now, we have been a large deployer of capital on behalf of insurance institutions, and it's logical. Our focus on long duration, highly contracted inflation-linked real assets has always paired very well with long-duration insurance liabilities. This obviously took a step change higher with the build-out of our credit platform punctuated by our partnership with Oaktree in 2019. But again, while our product focus alignment with insurance is obvious, what may not be so forthcoming is how our business model is prepared to support that growth. Through our agreement with Brookfield's related party insurance company, Brookfield Wealth Solutions, that business is writing $15 billion to $20 billion of new products every year that we manage on their behalf. What's great is we do not need to incrementally fund raise to secure that capital, and we don't need to make a GP-like balance sheet commitment alongside of it. This is high-value, sticky asset-light capital for our business. Going forward, we expect this to grow enhanced even further by our insurance SMA program that really only started in the last 12 months, but is off to a very strong start. And then the last thing about our structure is our publicly listed affiliates. Through these businesses that together have a market cap of almost $60 billion, we have made the public markets via public securities, LP investors into our private funds. And this is true perpetual capital. It is not subject to a redemption of any kind, and it continues to grow as we scale our business. And the ownership of these vehicles creates an unprecedented level of alignment between ourselves as the manager, our private fund LPs and our shareholders. But switching gears, turning to deployment, the benefits of our business model continue. We have been saying for years that the biggest investment trends around the world are those of digitalization, decarbonization and deglobalization. Put very simply, it is because the capital needs and growth opportunities in these trends are so significant that they outstrip what is available from both public markets and from governments, creating a large and attractive opportunity for private capital. And while that opportunity is available to some where it is particularly attractive, is for those that can operate at scale at the intersection of one or multiple of these themes. And that is exactly where we play. Our scale and flexibility of capital allows us to be the go-to investor or the partner of choice for leading corporates around the world. We have the ability to play at scale, not only in North America and Europe, but the fastest-growing markets in the Middle East and Asia. Our global presence allows us to partner with leading global corporates around the world, helping them to debottleneck key critical path growth items wherever they do business. And lastly, our operating approach, our partnership approach and the fact that we have multiple pools of capital that are all uniquely designed for different situations ensures that we can always provide a capital solution that meets our counter-party needs as well as delivers attractive returns for our LP partners. Nowhere is this more obvious than how we are today investing in the AI revolution. We are one of the largest owner operator, developers, acquirers of data centers with 6 independent platforms on five continents. We are the single largest provider of green power to the large tech companies around the world supporting their increasing energy demands to support AI. Within our real estate business, we've made a concerted growth effort into science and innovation, often housing the users and developers of new AI applications. This doesn't even get into our private equity business that is making investments like Invent that provides critical goods and services to the assets across these segments. Our knowledge of the value chain, the growth opportunities, the capital requirements in this sector positions us well to continue to be one of the largest investors targeting the most attractive returns in what is one of the largest growth opportunities of this generation. But in terms of broadening out our product pipeline, we're really just getting started. Go back 10 years, our product offering was a little bit more narrow. It consisted primarily of global opportunistic equity control funds. But from there, the tangential growth opportunities are obvious. In each vertical, we want a core fund, a debt fund and a retail-specific product as a next step. And from there, we will grow into niche products, geographic specific products or structured investment solutions. And that's -- this is not uncharted territory. In fact, in the last 12 months, we have launched new products across every single one of our verticals, always with the same criteria. Is it a large and attractive investment opportunity, is it something where Brookfield is well positioned to be a market leader and is it complementary to our existing fund offering. And given some of the key investment trends that we have a front row seat to around the world, we will continue to expand that offering, leveraging our existing base to create new growth foundations for the future. And everything we have discussed to date has been all about how we can organically grow our existing business. But as discussed from time to time, we will choose to inorganically grow either via partnerships or through M&A when we feel that is more timely and more effective to capture market opportunity. We will continue to be very selective in this regard, only partnering with the best-in-class managers and those that we feel can grow much more quickly when incorporated into the Brookfield ecosystem. So we started this presentation by saying, if we can double the size of our business, we should more than double our cash flows and profits in the next 5 years. Doubling what we have done in the last 25. We think that is both achievable and within our grasp to actually exceed because, one, we have a market opportunity that supports that growth ambition. We have a leadership position in the fastest-growing and most important components of the alternative landscape. We have a business model that allows us to access the largest, fastest-growing and deepest pools of capital being allocated to alternatives and then a leadership position in terms of investing into the fastest-growing investment themes on a global basis. If we do what's in front of us, we should not only meet, but exceed those targets, and none of this includes no doubt some opportunities that will come to us unexpectedly over the next 5 years. With that, I will hand it over to David Levi.

Welcome. I am going to take the next bit of time here and really talk about the client perspective of the growth that you heard from Connor and Bruce, which is appropriate because my job is basically to spend my days talking to clients. So I hope to bring them into this room a bit. I'm going to really do 3 things. The first is I'm going to describe how we at Brookfield are set to meet the needs of our clients. Second, I'm going to talk about what sets us apart, which is our platform, which you've heard a bit about and our very unique approach to partnership, which we continue to evolve. And third, I'm going to spend some time talking about a handful of very targeted strategies that are going to get us to that $1.1 trillion that you've heard about. There are several key themes that are driving fundraising here at Brookfield. One, of course, is that the demand for alternatives is massive. But I would say beyond that, which maybe is the obvious. The demand is actually coming in different ways. It's coming from a different risk return perspective. It's coming from different sectors. It's coming from private credit. It's coming from the extensions that you heard about over the last 2 presenters. Investors also are seeking to consolidate the relationship with GPs. They're looking for their managers to do more. And that means to be able to do that, we have to do more, and we have to do it really, really well. And third, the wealth channel, which I'll talk about in a bit more detail, is absolutely growing. The press and the pundits' statements about this are certainly true. But we really believe it's only the beginning, and I'm going to share some research that would support that. So how do we differentiate? One is our breadth and at the same time, our specialization, I'll talk about our platform in a bit more detail in a few minutes. But the fact that we're as broad and big as we are, yet we're specialized in the things we do is a real differentiator. The second is our operational approach. We are operational experts. That is how we drive value. We're not financial engineers. We drive value through operating the assets. We have what we like to think of as global capabilities but a very local mindset. We are on the ground living, working, breathing in local markets. We also have a partnership mentality. We don't think of our investors as limited partners. We think of them as partners. We think about their businesses. We think about how we can help them. And we are willing to and have the scale and ability to customize investment solutions to meet investor demands. That product evolution has already started. Just in the last 3 years, we've launched 10 new strategies. And those new strategies have contributed 20% of our AUM. These are things where we're dabbling. These are things that drive scale. And interestingly, we've also built 8 new products in partnership with investors, we and they have talked about an idea and need a market opportunity. And we've actually built a product with them that then we broadened out to the broader market. That's really, really differentiated. Our Middle East private equity fund is a great example. Catalytic transition fund is a great example. But there's more to come. Certainly, successor funds, the next vintage is what we do. And as Connor described, they get bigger and bigger. The pressure is on for the fundraising organization. There are new business lines. Today, we're in the venture business, thanks to our partnership with Sequoia Heritage. That's bringing new capabilities to investors. That is as they consolidate their relationships being able to deliver even more. We have adjacent strategies. Opportunistic real estate used to be a global strategy only. Today, we have a European version. We have an APAC version, very differentiated. And in terms of our platform, we have, as I've mentioned, the investment capabilities that are in most demand for investors around the world. We have this broad sector expertise that really has the scale to actually drive value. And we deliver very meaningful co-invest opportunities for our investors. That platform, it's massive. 240,000 operating employees, 2,400 investment professionals operating in 30 countries around the world. I described the idea of being global with a local mindset. This is that. And this is exactly what investors want. But not just from an investment perspective, I would say from a client perspective as well, we are local. We live, work, in the markets that our clients live in, we speak their languages. We understand what they need, and that's really important. And as I said before, we like to think of our investors as more than just an LP. We think of them as a partner. First hallmark of partnership is we invest alongside of them. Our interests are aligned. And I will say, when I talk to clients, that fact is so incredibly important and so incredibly, incredibly differentiated. It drives and starts that partnership mentality. We also share investments with them. Co-invest are incredibly important, increasingly important. And over the last 10 years, we've delivered roughly $40 billion in Co-invest to our investors. And that's thanks to the scale, the size of the transactions that we do, very unique. And as I alluded to before, we don't think of our investors as just investors. We understand their businesses. We partner with them. We take our 240,000 operating employees and we share insights that we have in running our businesses in running our assets to help our investors run their own. Because in many ways, Brookfield is very, very similar to many of the entities for whom we manage money. And that, again, is a very differentiated perspective, a very, very differentiated capability. So Connor talked about this slide in describing our asset management business. I'm going to spend a few minutes talking about the fundraising channels we have. They're very diverse. It's very unique in the industry to have this level of diversification in terms of sources of capital for Brookfield. So first, institutional. Our institutional business is what many of you would know us for is what we've been doing the longest is what our focus has been. We have over 300 client-facing people in our institutional business, roughly 2,200 relationships. We operate in 12 markets around the world and do that importantly in a very targeted, very customized way. Engaging with clients the way they want to be engaged with, as I described. The second is our insurance business. As I mentioned, or as Connor mentioned, Brookfield Wealth Solutions is writing roughly $15 billion of new policies a year, which we are managing. And separate from that, we have other third-party relationships with roughly 150 insurance companies with whom we can do more. Third, our private wealth business is at scale and growing. 150 dedicated people focused just on private wealth, 160 wealth management platform relationships and growing. We have people today in 10 markets around the world dedicated to private wealth. And finally, which Connor spoke to, our public markets -- public affiliates are a really unique way to source capital for our private funds from the public markets. 2,500 institutional investors, $10 billion of retail shareholder capital incredibly unique. So to spend a few minutes on each one of these. Institutionally, we are, as I described, a trusted partner already. We manage capital for 39 of the largest 50 institutional investors in the world. And what's really interesting about this is they actually need us as much as we need them. They need to deploy massive amounts of capital. And because of our scale, because of our scope, we can do that for them. So it's not that we -- this is all about us -- them serving us by giving us capital. It's actually us helping them solve deployment challenges. Those top investors represent roughly 39% -- 35% of our fundraising. But we can do more. The same investors and their alternatives allocations, we represent only 2% of their alternative allocations. So as we cross-sell those investors deepen our partnerships with them. We believe we can meaningfully increase that percentage. So investing across the things we do, doing more with us in the things they already do. And as our product platform expands, bringing new strategies to them that are appropriate. So doing more with the biggest is an important part of our strategy. And we believe that as we do that over the next several years, that can contribute $25 billion a year to our annual fundraising. In addition to the biggest of the big, we also have several underpenetrated segments. Middle market institutions is an underpenetrated segment, family offices and insurance companies. Today, only 3% of our fundraising is sourced from family offices. I mean 9% of our fundraising is sourced from middle market institutions. These are institutions with capital between $2 billion and $15 billion. And only 10% of our fundraising is sourced from insurance companies. Our approach here is specialization. Our approach here is dedicated teams focused on these markets. Dedicated products focused on these markets, understanding the needs of these investors and building for them. And we believe as we do this, this will contribute roughly $20 billion of annual incremental fundraising to what we do. So in addition to these very specific initiatives to expand our footprint, we also have these secular tailwinds, allocations, alternatives are increasing. People want differentiated strategies, and we are in a leadership position across everything that all the asset classes where we focus. Turning to insurance for a minute. We do continue to grow our partnership with Brookfield Wealth Solutions. Today, we manage roughly $88 billion, which we believe over time, will grow by roughly $200 billion, an amazing source of capital. But what's also really interesting is in addition to what we can do for Brookfield Wealth Solutions, we can bring those same insights, those same capabilities, those same perspectives, those same products to the rest of the insurance community. And as I mentioned before, we do have relationships with insurers. We have roughly 150 relationships with insurance companies globally. But we haven't had the breadth of investment capability, the credit platform, the structuring expertise to do what we'll do in the future. So whether that's tailored, separately managed account programs for insurance companies that are bespoke for them, leveraging things like music royalties or aviation finance, investment-grade credit, et cetera, or it's our private funds structured in an insurance friendly way. We believe we can bring solutions to the insurance market that we simply couldn't before. And as we do that, that will contribute roughly $50 billion of capital. Private Wealth. So I have the benefit for some of you who were here, I'd be flattered, if you remember this, but maybe you might I was up on stage last year, representing our private wealth business, which we call Brookfield Oaktree Wealth Solutions. And I have the benefit of being on the team that built that business over the last several years. So I'd get a little revved up when we talk about private wealth here. We have built this business for scale. As I mentioned before, we have 150 professionals dedicated to private wealth, that's what they wake up thinking about. That's all they do is think about private wealth and what advisers need, what investors need in local markets. What we do in private wealth is we bring the capabilities of both Brookfield and of Oak Tree to the wealth market. So when we started 3 years ago, what that meant was we brought closed-ended drawdown funds in general to that market. And we still do that. But what we've added to that are capabilities that are bespoke for the Private Wealth segment, and I'll talk about that in a minute. And as I described before, one of the things that we're very proud of is that over just the last 3 years, we have brought those capabilities to our wealth partners around the world in scale. Pretty unprecedented, actually, to be able to over such a short period of time, bring our products to over 160 wealth management platforms around the world. And those products that we brought, as I said, started as our traditional institutionally focused closed-ended funds. And while we still do that, we now also bring the strategies that were designed for wealth. Oaktree's strategic credit, private lending in a structure that's friendly for wealth. Brookfield infrastructure income, infrastructure strategy, investing across the totality of what Brookfield does all designed for wealth and all resonating in the market. I mentioned before that there's a broad belief that the wealth segment -- alternative investment in the wealth segment is growing in a really significant way, and we certainly would agree with that. But one of the things that we felt was important was to really delve into the attitudes of investors and financial advisers around the world and build a program to help each group educate each other about alternatives and increase the pie, if you will. So over the last year, we surveyed roughly 2,000 investors and financial advisers in Hong Kong and Singapore, the U.S., Canada to understand what they think. We will be launching a program that will share a lot of this insight. But just to give you a little sneak peek here, 70% of investors who today are not using alternatives say that they would if their financial adviser recommended it. It's pretty amazing. It's kind of an assumption out there that most people who are investing in alternatives are the people that are investing in alternatives and they'll invest more, 70% of people who don't invest in alternatives would. It simply their financial adviser suggested it. The financial adviser side, 72% view alternatives as a key driver for their business. It's massive. So if those 72% of advisers recommended to the 70% of investors that they invest in alternatives, I can't do the math, but that's pretty impressive, 91% of financial advisers feel that spending the time to understand alternatives is worth it. Everybody knows that the education component is a big hurdle, and having them view the fact that it's worth it is a great place to start. So what are we doing going forward? From a wealth perspective, number one is we're going deeper in certain markets. We're localizing our strategies. Example there would be we've just launched a private credit strategy in Australia, built a product dedicated to the Japanese market. And we are tailoring our private equity capabilities for wealth. This is something we're super, super excited about. We did it in credit. We did it in real estate. We did it in infrastructure, and now we're doing it in private equity. So you'll be hearing much more about this. Last year, I suggested everybody follow Brookfield Oaktree Wealth Solutions on LinkedIn or web or whatever. If you do that, you'll hear more about this. And as I say, we are supporting the demand for education. So we continue to scale the business. We started in 2021. This year, we'll raise about $7 billion, and that is growing at roughly a 30% CAGR. So just to wrap up and bring it all together, as I said, and as you heard from Bruce and Connor, the objective is, over the next 5 years, we will reach $1.1 trillion in fee-bearing capital. And from a client perspective, we will get there by doing more with our existing partners, deepening those relationships with those partners, penetrating underpenetrated segments like insurance, the middle market, family offices, broadening our product offering to meet the needs of those investors, big and small, and continuing to grow in private wealth, and all of that supported by this amazing organization dedicated to the needs of our clients. So with that, I'm going to introduce Hadley, our CFO.

Thank you, everyone. You've heard from Bruce, Connor and David just now about how we're going to double our business. So we'll spend a little time talking about the details behind it, specifically in 4 areas. One is the characteristics of our earnings profile: stability, predictability, those types of characteristics. The second is our balance sheet and how that supports our growth. The third is the feedback that we've been receiving from our shareholders and some initiatives we're thinking about doing around that. And fourth is, of course, the 5-year plan and getting into the weeds around the numbers that will lead us to $1.1 trillion of fee-bearing capital. It's important to recognize that our earnings profile, it really benefits from stability, predictability and strong growth. The nature of our capital is resoundingly based on permanency, 87% of our capital is classified as either long term or permanent in nature. And what's interesting about that number is that 87% contributes 95% of our base management fees. Hence, the stability of our business. Now as a pure play asset manager, we operate with an asset-light model, no debt and limited realized carry for the next years. Now we're growing into our carry over the years, and I'll talk more about that later. But what that means is 100% of our fee-related earnings translates into distributable earnings, hence, the predictability of our business. And now we're on to growth. This is repetitive, but it's worth saying again, we have a leadership position in the fastest-growing areas of alternatives. You've heard from David around our fundraising channels and how we are able to access them in such a material way. We've got a broad base of product offering that fits the investment themes that our clients value. And in addition, we have a successful track record of executing expansion, whether it's buying or building. And all of that will help us double our earnings. And in fact, if you look back over the past 5 years, you can see the characteristics of these earnings, the stability, the predictability, the strong growth, and that's what led us to over $500 billion in fee-bearing capital at a 15% CAGR. So when you take that performance, that track record and then these characteristics, that gives us the confidence that we can deliver a 15-plus percent long-term annual dividend growth rate. Now let's spend a little time talking about the balance sheet, the source of strength that I mentioned early on. We have a bulletproof balance sheet in which strong liquidity is a top priority. We have about $1.9 billion of cash on hand, no debt, and the capacity to put in place over $5 billion of debt at high-grade rates, they call that [ AA- ]. And that will all support our growth. Now the balance sheet will be relevant in 2 material ways. One is, of course, building businesses, expanding our product set and our capabilities. And then two is supporting strategic partnerships. We kind of talked a little bit about this, but when we're thinking about building businesses, and I'll talk more about this as well later on, it's important to understand the criteria they're using, how we select which businesses we're going to grow internally. First is that to have strong client demand. Second, it's going to be where we can add value and become a market leader. Third, scalable with a large opportunity set. And fourth, where we're aligned with our clients. Now this last one is actually very important. It's a competitive advantage of ours for two reasons. One, this sets us in a different theme than our competitors. And two, it makes us a partner of choice. Clients value that we put sizable commitments into our fund for 2 reasons. One, it shows that we have confidence in our ability to deliver on the mandate and also achieve those risk-adjusted returns that we promised against the strategy. Now you can see that we've actually committed about $13 billion -- over $13 billion in the past year since our spin-off to our funds. But about more than 85% has been commenced through the broader Brookfield family, with only $1.6 billion the responsibility of Brookfield Asset Management, and that will be over the next 2 to 3 years. So our structure allows us to continue to be asset light but still have that competitive advantage that alignment with our clients. Now the other way that our balance sheet is very supportive to our growth is of course through strategic partnerships. And when we think about the strategic partnerships, we want to make sure that it's additive to our business; complementary, whether it's from an LP or geographic perspective; again, scalable; and then cultural alignment, and this is very important, actually, it's binary for us. And we've got two of our partners who are going to speak on the credit panel, Oaktree and Castlelake, and they'll spend a little bit more time talking about this. We've executed 6 strategic transactions over the past 5 years. The first one being Oaktree, of course, in which we bought 60%, that's grown to 73%. In this example, we used a new and innovative structure that's been quite successful. And we've got [ TD ] to carry that forward as we've entered into other partnerships. Now as you can also see, we've expanded our capabilities. I mean, Oaktree was tremendous in further building out our credit business. And then since then, we've got LCM and 17Capital, which is part of Oaktree, our fund finance business. We're now in the music royalty business with Primary Wave. Our venture capital endeavor with Pinegrove, [indiscernible] by Sequoia Heritage. And then finally, Castlelake, asset-backed finance, which we hope to close in the next few days. But what is it well known is that when we built this innovative structure, we built in the options over the next 5 years to acquire up to $250 million of fee-related earnings. And that's not built into our business plan. Now I talked and referenced earlier about some of the feedback that we've been receiving from our shareholders besides just the break. And we've been listening and we're trying to address it. So when you think about our spin-off of BAM, it helps simplify the story. It made us a pure-play asset manager and it expanded our shareholder base. But there is more that we can do. We want to continue to broaden that base into the deepest pools of capital. And specifically, when we think about the feedback that we've received, it's around further increasing the liquidity of BAM stock. And then as we've shifted more to a balanced U.S. and the rest of the world from a shareholder holdings perspective, some of the feedback has been around inclusion into other stock indices on the global and the U.S. side. So a few of the steps that we're contemplating taking are the first one is moving our headquarters to New York. Now this one makes sense just because we have the largest percentage of our employees, our revenues and our asset management located in the U.S. The second step is around exchanging shares. So let me take a step back. When we spun out BAM, we listed 25% with Brookfield Corporation owning 75% through an unlisted holding company. Now that's why our market cap only represents 25% of the true value. Now as a footnote, we've grown that to 27%. So what we're contemplating is Brookfield Corporation, taking its interest and exchanging it into BAM shares, and that will do two things, one, it'll make 100% of BAM publicly owned; and two, it will reflect the appropriate true value of our market cap at almost $70 billion. Now what will not change is BN's ownership at 73%, our Canadian incorporation, our dividend treatment because this is a nonevent for our shareholders. And there'll be no changes to how we operate and run our business. Now on to the 5-year plan. We have broad-based growth backed by our flagship funds, our complementary strategies and our credit business. The flagship funds have been and will continue to be the backbone to our growth of our business. In fact, if you look at the current round, we've got about $90 billion right now, and it will grow over the next 5 years by 15% to $105 billion, all total, bringing in $125 billion over the next 5 years. But it does more than just that. It actually serves as the mechanisms to further grow our complementary strategies on a compounding way. So let me give you an example. We launched our infrastructure flagship fund, BIF, back in 2008 at $2.7 billion. And since then, we've expanded in geographies that we find attractive and into sectors that we see value. And through that as well, we're able to build up further capabilities on the operating side and expertise on the asset knowledge perspective. So that led to launching our first complementary strategy, BID. And as many of you know, this is close to my heart since this is where I came from and I kind of call it the best. But BID is our high-yield infrastructure debt fund that we launched back in 2015. Since then a few years thereafter, we launched a super core open-ended strategy, BSIP. And then most recently, our structured solutions strategy, BISS. But BIF did more than just that. It actually was the catalyst for launching BGTF, our global transition fund. And day 1, that was a flagship at $15 billion. And we further expanded into our catalytic transition fund, our Asia Renewable fund. Now because we've been able to be successful across all of these strategies, we were able to last year, and you heard a little bit about this, launch our private wealth infrastructure income strategy in which it invests alongside our other complementary strategies and some of our -- in our flagships. So now you can see in totality how our flagships can really further expand our capabilities, our product set and build that growth on a compounded basis. And to give you some numbers of the existing strategies, we've raised $100 billion, and we've got about $30 billion in the market today. So now if you look back at 2019, just to put some additional numbers against this, we had 5 strategies that raised about $5 billion. Today, 50 strategies that raised $50 billion. And so over the next 5 years, we anticipate $260 billion coming in with 80 strategies. Credit is worth spending some time on because there's just tremendous growth that we see in the business. We're already quite large at $238 billion, and we plan to grow that to almost $600 billion. You've heard about the $90 billion as I just talked about as part of our flagship and our complementary strategies. And then through our partnership with Brookfield Wealth Solutions, we continue to see growth from that perspective, up to $200 billion, and you'll hear more about that in today's afternoon session. Finally, David summarized how we're expanding into third-party SMAs, especially around insurance companies, and that should generate another $50 billion. Now one thing to point out is the makeup of our credit business. Right now, we're about 30% private credit, and that will continue to expand to 50%. And just as a reminder, around that long-term and permanent nature, 85% hits that classification. Now in total, we should generate about $350 billion of capital coming in over the next 5 years related to credit. So here's in totality. I've talked about the $125 billion that's coming in from our flagships, and will support the growth of $260 billion coming in from our complementary strategies. And then insurance, which I just discussed at $250 billion. And then we've got about $85 billion coming in from affiliates, co-investments, et cetera, all while returning $160 billion of capital back to our clients. And that's super important to our clients because they value that, especially in today's environment, and that's the largest number that we've ever projected. So we get to the $1.1 trillion that you keep hearing about through those different vehicles. And I want to take you back to an earlier part of my presentation when I discuss that long-term and permanent nature, 87% of our capital. That's going to grow to 92%. And so you see the growth of our business, but you also see the growth in our stability. Later on, we're going to have the various business groups come up and talk about the growth. But here, you can see the actual numbers and we see growth across all of our businesses. Renewables, infrastructure and credit will be leaders, with renewables and credit doubling, more than doubling. Infrastructure will benefit from the growing aspects of the asset classes. Private equity, we'll see growth in its complementary strategies around BSI II, our structured solutions strategy and our Middle Eastern fund. And then real estate, given the distress in the industry we recently have seen, has created opportunities around bad balance sheet, maturity walls that will create tailwinds to further grow that business, all with a 16% CAGR. And that will drive our revenues to almost $9 billion. And a fee-related basis to BAM, $5 billion at a 17% CAGR. So per share basis, a little over $3. But what's also interesting, and I really want to point it out, it's the direct cost. You can see they're not growing as fast as our revenue. That's the operating leverage that's going to further expand our margins to over 60%. But there is further upside to our business. There is the second leg of growth. We don't have much carry today, but that's growing to $2 billion by 2029, and then $7 billion by 2034. So that will continue to drive our business. And you can see it here with our distributable earnings. Before taxes, we're going to reach about $6 billion at a 19% growth. And then post taxes, about more than $5 billion with an 18% growth level. So that we, on a per share basis, we're earning about $3.12. Now that will support a payout ratio of 95% and that long-term dividend growth rate of over 15% that I mentioned. So now you can see why we're so excited about our business. We're in a great position to take advantage of our strong balance sheet, our leadership position, the growth that we see in all of our businesses, including renewables, infrastructure and credit. And for that, we should earn above 15% attached to our fee-bearing capital, our fee-related earnings and our distributable earnings while returning most of them back to you. But all we have to do is execute our existing business plan. And there is upside to this business, as I pointed out. So that's why we think the best is yet to come. So now I get the pleasure of announcing the break. And so if we could have everyone back here at 11:30. After the break, we'll have the business groups present their growth prospects and then a credit panel that will talk about our capabilities and the growth attached to that business. Thank you. [Break]

Good morning, everyone. My name is Anuj Ranjan, I am the CEO of our Private Equity Group at Brookfield. And after all the buildup for that break, I feel a bit bad that I have to pull you all back. So whatever I say, it better be good. Thankfully, we've got -- you've heard a little bit today about our business model, which is simple and effective, as Connor said earlier. And David Levi then expanded on how we raise all of this capital, all of our different fundraising channels. I'm very pleased today to be here with many senior leaders from our organization to talk about how we spend that money, how we deploy that capital and invest it and earn superior returns. But before we dive straight in, I thought I'd highlight a few of our competitive advantages that are actually unique to Brookfield. They differentiate us as an asset manager, and they're shared by all of our businesses. If you think about our scale, for example, we've been talking a lot about $1 trillion of AUM. But what does $1 trillion of AUM really mean? It's a big number. It's a huge number. But what it means is 300 businesses that employ 240,000 people all over the world. It includes a 90 million square feet of logistics, it includes over 200 gigawatts of renewable power, it includes enough fiber optic cable to circle the world 1.5x, it also includes a manufacturer of 1/3 of the world's car batteries. And what we get from that is an immense amount of data, real-time insights, learning and knowledge that the entire business can access, that helps us make better decisions. It brings clarity to situations that may seem uncertain, and frankly, it makes us better investors. When you take that, you combine it with our deep local relationships from our boots on the ground in the 30 countries where we have offices, the relationships we've built with entrepreneurs and industrialists and companies, and also the 400 banks with whom we work with, many of whom are in this room, in many cases where we are often their largest lending relationship. All of that combined with these insights allows us to be a partner of choice in many situations. This, as a result of all this, about 2/3 of all the transactions we have done to date have been sourced on a proprietary basis and executed bilaterally. I'm going to come back to speak a little bit more about how this all relates to private equity in a moment. But for now, I'm pleased to call on my colleague, Sikander Rashid, to talk to you about infrastructure.

Thank you, Anuj, and good morning, everyone. It's a pleasure to be here today. It's great to be back in New York City after 3 years. In the next 10 minutes, I want to leave you with 3 key takeaways. First, Brookfield Infrastructure is a global leader across sectors, geographies and products. Two, the infrastructure supercycle is creating an unprecedented demand for private capital. And third, because of these tailwinds and our market position, we are really well positioned to continue to grow the business in line with what you just heard from Bruce, Connor and Hadley. Our track record is unmatched. It is second to none. In 2010, we had $13 billion in AUM. Fast forward to today, they've got $191 billion in assets under management, a global diversified business across geographies and sectors, as you can see on the slide. In addition to our track record, there's 2 key differentiators of our business I would like to highlight. The first one is the diversity of our products. Hadley talked about this. We have the ability through our infrastructure business to invest up and down the capital stack for the benefit of our investors and for our counterparties. We have the ability to offer bespoke solutions and cater to the needs of our counterparties. Secondly, our operations-oriented approach differentiates us from our peers. And there's 4 key tenets of this approach I would like to highlight today: enhanced contracting profile of our businesses; optimization of capital structures; investments at accretive growth projects; and lastly, thoughtful exits. Now let me provide a few examples that illustrate our approach. In 2022, we acquired a $20 billion business in Germany, which formulates the backbone of the German cellular system, a company called Deutsche Funkturm. We were successful in acquiring this business, not only because of our access to large-scale capital, but also our operating capabilities. Fast forward to today, within the last 24 months, we've effectively derisked 80% of the growth, third-party growth in the business, which is a huge outcome for the business and our partner. Another example, Compass Datacenters. This is a large-scale marquee hyperscale data center business based in North America. We acquired the company last year, and we were successful again, not only because of our access to large-scale capital, but because we had built a strong relationship with the management team, thanks to our credit business. Since our acquisition of Compass, we've committed an incremental $10 billion of CapEx at accretive returns to the business. Moving on to another example, Nordiqus. This was effectively a carve out of social infrastructure from a distressed seller last year. Since our acquisition, we've optimized the capital structure. We've put in investment-grade, project finance debt, with more leverage, better credit rating and lower duration adjusted cost of capital. This effectively optimizes the cost of capital of the business and as a result, improves the intrinsic value of the company. Fourth example, are thoughtful exits. TDF is our large digital infrastructure business in France. The last 12 months, we carved out the fiber business from TDF and sold it at an 18% IRR and 2x ROIC. That divestment is accretive for a TDF investment, but more importantly, what that divestment leaves behind is a pure play tower business, highly contracted, extremely well positioned to be acquired by either a strategic investor or a financial partner. And these are just 4 examples of many initiatives we've got going on around the world across our businesses, enhancing value. Looking ahead, the market opportunity has never been stronger. The need for capital has never been higher for infrastructure. The punchline is, the world needs $94 trillion of capital in the next 15 years alone. On one hand, we need capital to maintain and upgrade legacy infrastructure, including water pipes that bring water to your homes, gas pipelines, electricity wires that move electrons around the world, airports, toll roads. But on the other hand, there's a need for greenfield or new fresh infrastructure projects, including data centers and a few other areas I'll touch on shortly. Legacy, historically, a lot of this capital was provided by governments or publicly listed entities who today have several impediments, for example, market volatility or stretched balance sheet that impede their ability to continue to fund or subsidize this build-out. And that creates a unique opportunity for large-scale private capital providers such as Brookfield. So now the question is, what does that mean for our clients and what are some of the key areas we're focused on to grow the business? I'll provide a few examples of areas we're really excited about. Pharmaceuticals is the first one. Since the onset of COVID, the importance of securing medical supply chains has never been greater. In the next 5 years alone, incremental capital requirements for contracted pharmaceutical manufacturing and dedicated pharmaceutical logistics in the U.S. and Europe alone is $100 billion. Similarly, the need for industrial gas infrastructure, which is critical for semiconductor manufacturing, advanced manufacturing, hydrogen production has never been greater. The 4 largest industrial gas companies in the world are forecasting $75 billion of CapEx needs in the next 5 years alone. That's a 50% increase compared to the last CapEx cycle. Electricity grids. That's another example. This has been in the news quite frequently over the last few months. Electric grids in the U.S. and Europe are ill-equipped to facilitate net zero; to feed artificial intelligence infrastructure or data centers; and third, to secure the energy supply chains. For context, because of the geopolitical crisis in Germany, the CapEx needs for transmission lines, these are not distribution lines, this is not electricity generation, this is just the transportation of electrons from renewable power sources to the end users. That capital need, post the geopolitical crisis, has increased from $100 billion to $600 billion. At Germany, because of its constitution, doesn't have the ability to subsidize this by just borrowing more. For the first time in their history, they're contemplating private capital solutions. Now moving on to Artificial Intelligence. Has anyone heard the phrase, Artificial Intelligence in the last 18 months? It's everywhere. Yesterday, I picked up a hard copy of the Wall Street Journal at the hotel, it had 4 headlines on the front page. First, NVIDIA's antitrust probe because they got 80% market share of AI chips. Second, Apple's need to integrate AI into its products to compete with Samsung. Third, xAI and Tesla's rev share model. And fourth, in case you missed it, Jannik Sinner won the U.S. Open in straight sets. So what does that mean? 75% of the headlines on one of the best newspapers in the world yesterday morning talked about AI. And there's a reason for that. AI is primed to be the most impactful general-purpose technology in modern history. There's 3 other similar technologies so impactful we've seen in the last 3 to 4 decades. It was computers, semiconductors, and computers, semiconductors and the Internet. AI has the potential to be the next. Total economic productivity improvement from Artificial Intelligence is expected to be $18 trillion. That's an enormous number. But for us to get there, more importantly, total capital required is $8 trillion. This capital will be spent on data centers and renewable power, an area Natalie will touch on shortly. But there's a lot more to the AI value chain than just data centers and power. There's graphic processing units, which are 4x more expensive than CPUs or central processing units. So these graphic processing units are much needed for AI. Artificial Intelligence chips are much needed, 95% of these chips are produced in Taiwan today, and that production needs to be extrapolated across the world. One of these fabrication facilities cost up to $30 billion. And lastly, robotics. With the advancement of deep learning and combination of deep learning with accelerated compute, we finally have the ability to get closer to autonomous transportation and robotics. And that is another huge area of growth for Artificial Intelligence. But the punchline is, there's a lot of physical infrastructure required for us to get to that $18 trillion outcome. And that's a huge opportunity for Brookfield. As Connor explained earlier, we are the largest data center owners in the world, private data center owners, one of the largest renewable power owners. And that is what makes infrastructure really exciting. So in summary, 3 things. First, we're really pleased with where we are today as a business, but there's a lot more to do. Tailwinds for infrastructure have never been stronger. The market opportunity has never been better. And because of this, we're really excited and really well positioned to continue to grow the business across products, geographies and sectors. This concludes my presentation. Thank you for your time, and I'll hand the mic over to Natalie Adomait.

All right. Good morning. I'm excited to be here today to talk about one of the fastest growing areas in our business, and that's renewables and transition. Last year was a record year for the transition sector. We saw $1.8 trillion of capital flow into this space. It's a space that's seen strong historic growth over the last decade of roughly 25% year-over-year. But despite that strong historic growth, more capital is still needed to be invested. Estimates place us at about $5 trillion of capital that needs to flow into renewables and transition every single year from now until 2030, and that number actually goes up in the years after that. That means, by the time we reach 2050, renewables and transition will be well over $100 trillion investment opportunity. Now a lot of that capital is going to flow into renewables. And that's because at the same time that we're seeing our existing thermal fleet taken offline and being replaced by cleaner sources of power, at that same time, electricity demand is expected to double. That means we're going to have to add 8 terawatts of renewable capacity. That's a tripling of our current installed capacity base. This creates a massive investment opportunity. And what I want to do today is talk about 3 of the key tailwinds that we're really seeing that are driving the demand and the investment need in the sector. And then at the end, I'm going to come back to talk both about the investor demand and 3 of the exciting investment opportunities that we're specifically spending time on in the space. But let's get right into it. And I'll start with the first key driver. That is the increasing demand for net zero solutions that we're seeing come from both corporates and from governments. For corporates, the opportunity to invest in decarbonization is a business opportunity. We are seeing corporates invest in decarbonization because their end-customers demand lower carbon and greener products. So moving into this space presents an opportunity to gain market share if they move faster. Within our business today, we're seeing that corporate demand flow through. To give you an example, in our renewables portfolio, 90% of the contracts that we executed last year were with corporates, not governments. And we're seeing those same conversations filter through also on the carbon capture side and the biofuel side as well. But it's for some of those newer decarbonization technologies where we're really seeing government step up. Since 2021 when governments around the world set aggressive net zero targets, well those net zero targets have since been translated into attractive subsidy programs like the IRA in the U.S. and the Green Deal in Europe. And those subsidy programs help newer technologies become economically viable, but they also help existing viable technologies today like renewables build out more projects faster because more of those pipelines are actually able to meet the target hurdle returns that investors like us require. The second major driver is electrification, and specifically AI and the increase in data centers. Sika already mentioned how AI is driving a step change in data consumption and in data center development. But on the power side, what this is doing is translating into an expected 15x increase in the need for power from the technology sector alone through 2030. In the U.S., in some areas of the U.S. where we've already seen a lot of data center buildout, grid constraints are starting to be observed. And in some conversations that we've had with data center developers, they're telling us that they might not be able to achieve permits to build new data centers if they don't have the new incremental power supply identified and secured. This creates a great opportunity for someone like us that has both the infrastructure capabilities and the power capabilities to really partner with these data center developers to provide full-scale solutions and help them build out their business. Of course, the last driver I have to mention is the competitive cost of renewables. Renewable power is the lowest cost source of bulk power, representing a roughly 50% decrease in costs from thermal sources. And as manufacturing capacity continues to scale in the space, we'll see costs continue to come down, further enhancing and establishing the position, the competitive position that renewables has today. All of these tailwinds that I just mentioned are long term. They're structural in nature, and will create a massive opportunity for investment. And at Brookfield, we are best positioned to be able to execute in this space. That's because as you've heard a few times already today, we have the largest transition platform globally with over $100 billion of AUM, 34 gigawatts of operational capacity and a 200 gigawatt pipeline. And our portfolio is diversified both geographically and across all core renewable technologies. But it's really our 100-year history of being owner operators that leaves us better placed than our peers to drive value through our active asset management and operational approach. In addition to over 100 investment employees, we have over 5,000 operating employees in our business, covering everything from grid management to procurement to contracting and development. And having that internal skill set has never been more important than it is today because in transition, you cannot just write a check to become the leader, you have to build it. And that's why Brookfield's approach of maintaining lean centralized teams to work with our local development platforms leaves us best placed to be able to allocate capital to where we see the best risk-adjusted returns around the world and never compromising on our disciplined approach to investment. Now switching to talk about 3 of the key investment opportunities that we're spending the most time on in our business today. And the first one I want to talk about actually comes from one of the drivers I mentioned just a few moments ago, and that's corporate-backed renewables. Perhaps the best way to talk about how that demand has flown through into investment opportunity is the highlighted deal we announced earlier this year. In June, we signed an agreement with Microsoft to deliver for them 10.5 gigawatts of renewable capacity through 2030. For us, we've secured a AAA-rated PPA counterpart who's committed to execute with us at market prices. We will be able to accelerate our project pipelines and furthermore, expand our investment opportunities, knowing that we have the conviction and the commitment of this partner behind us. So more capital out the door faster at lower risk and all without compromising our target hurdle returns. This is a great example of our platform in action. Microsoft chose us because we are a credible and an experienced developer who has, time and time again, worked with them and delivered projects on our committed timelines. And what's more, our global platform and our access to capital mean that we can be a partner to them in accomplishing their renewable objectives, not just in one region but across the globe. The second investment opportunity we're spending a lot of time on is batteries. And let me start with the conclusion. We think this sector alone will represent a $3 trillion investment opportunity. The commercial case for this technology is quite simple, cost -- as cost of the technology have come down, the revenue arbitrage opportunity and the commercial need for these assets has really been increasing. And that's ultimately being driven by the increasing proliferation of renewables on the grid. At Brookfield, we've been making a number of investments into this sector to further establish ourselves as a leader in the space. One deal which we announced earlier this year is an investment into Neoen, a leading global battery storage developer. With that acquisition, we took our already very significant portfolio in batteries to 2 gigawatts of operating and under construction capacity. And with that business and our broader pipelines, we see line of sight to add over 8 gigawatts of capacity over the next 5 years. The final investment theme that I want to talk about is sustainable solutions. And these are really the other low-carbon solutions, which are required to be scaled as they become proven technologies. An example of one of these would be Sustainable Aviation Fuel or SAF. In fact, just this morning, we announced our first investment into the SAF space with a commitment to spend to invest over $1 billion over the coming years. Our first operational facility will be in Texas, and once complete, we'll sell its output to American Airlines and another airline that we'll announce soon. We're very excited about this space. We think SAF alone could represent a $50 billion market opportunity through 2030. And SAF is just one of the many technologies that we are spending time on in Brookfield. We also are looking at hydrogen, carbon capture, recycling solutions, to name a few. And today, across our business, have a pipeline of over $20 billion of different opportunities at varying stages that we're evaluating. Now let me switch from the investment opportunities to the investor demand really quickly. As a reminder, we launched our first private fund, BGTF, in 2022 at $15 billion. This was a record-setting first-time fund for our franchise. And with the launch of that fund, established us as a leader in the impact space. We didn't stop there. Over the last 4 years, we have expanded our AUM within our funds to over $40 billion through 4 different funds. That's through the launch of the second opportunistic fund, our Catalytic Transition Fund and our Asia Renewables Fund. And because each of these funds and each of these products has been tailored to meet that sweet spot between investor demand, investment opportunity and our unique skill set, we've been able to bring in 45 new LP relationships to the franchise through each of these different fund launches. And we don't see that investor demand slowing. In fact, we expect that the capital raised and the capital under management within the renewables and transition business to only continue to grow. And so we'll look to continue to bring additional funds to market over the coming years, both within our existing fund series as well as in new products. In conclusion, the market investment opportunity in renewables and transition is massive, and the investor demand is there and growing. And as the undisputed leader in the transition space, we will be the best positioned to catalyze on this opportunity. Thank you. I'll pass it over to Brad to talk about real estate.

Thank you, Natalie. Good afternoon. I'm going to spend the next few minutes talking about our global real estate business. I'll tell you about how we see the market currently, which is clearly evolving. I'll touch on our track record, competitive advantages in some of our recent activity, highlight a few other themes and sectors where we're focused, and then briefly touch on our recent fundraising. But I'll start with our core principle and conviction that high-quality assets can weather market cycles and deliver long-term value. We've seen this play out over many decades in many cycles, and we continue to believe in it today. So where are we today in the real estate cycle? And I'd say, it's a pretty unique moment. We certainly see a lot of capital stress, given the high interest rate environment over the last couple of years, and many owners which are overleveraged and undercapitalized. However, the macro picture has been surprisingly resilient. And GDP is not contracted, therefore, demand has remained pretty healthy for real estate, and importantly, we're seeing very low levels of supply. Certainly, over the last 2 years, there's been very little new construction, but really going back to the pandemic over the last 4 or 5 years. So it's very much in balance, producing strong fundamentals yet stressed owners. And that's a pretty unique point in the cycle, which is quite different. The last 2 years, we all know have been volatile. They have been uncertain. We've had many headwinds in the real estate sector with high inflation, high rates, uncertainty, persistent fears around recession, and that's really essentially froze the transaction market for a good part of the last 2 years. But in our view, that's in the rearview mirror. And we believe we're already operating in the next phase of the cycle in real estate. Inflation has come down to within target range or thereabouts, Central Banks have commenced the rate cutting cycle, debt markets are open for good credit, strong borrowers, such as ourselves. The persistent fears of recession have yet to materialize. And while economies are slowing, there's still positive growth in most places. Therefore, cap rates are stabilizing and activity is picking back up. But the hangover is still there from higher rates and capital stress, and we're seeing it play out in a few different outlets where we're most active. The wall of maturities that's occurring over a 3-year period, nearly $3 trillion of maturing debt in the U.S. and Europe alone, that's creating opportunities, whether it's distressed loans and nonperforming loans from creditors, whether it's forced sellers because they can't refinance their debt at par, or opportunities for us to provide structured capital to mitigate the gap in financing. Private funds, in the U.S. alone, we've seen over $50 billion of open-end fund redemptions, forcing owners to sell assets, oftentimes, their highest quality and most liquid assets, and they're looking to us as a trusted partner where we've acquired a number of assets, and closed-end funds, which are reaching the end of their fund life. And public real estate companies, which have rebounded broadly over the last several quarters, but there are still many examples of public companies that have challenged or broken capital structures with an inability to access public debt and equity markets, and that's producing M&A opportunities. But at Brookfield, we acquire, we operate, we sell throughout the cycle, and we've been doing it for a long time. An example of this is our U.S. multifamily business, where we've been active for the last 25 years. Several years ago, we saw an insatiable demand from investors to acquire multifamily assets in the U.S. We took that opportunity to sell out of most of our portfolios in our closed-end funds, with over $10 billion of sales during that period at average cap rates of 3.7% in place. Fast forward to today, many of the same buyers 3 years ago are now forced to sell. And year-to-date, we've acquired or have under offer $3.7 billion of multifamily assets at an average cap rate almost 200 basis points higher in place. And importantly, value-add opportunities through our active asset management and our operating platforms to take our stabilized cap rates north of 7%. As I said, we've been doing this for a very long time. We're very proud of our track record. Over the last 20 years in our opportunistic strategies, we've invested $44 billion of equity and have current returns of 21%, 17% net to our investors. This is ahead of our target returns. We expect this to continue. How do we drive value? And it's really the competitive advantages Anuj mentioned earlier. At over $270 billion of assets under management, we're one of the largest owner operators of real estate in the world. The access to capital we have is unparalleled. Our strategies are among the largest of their kind in our private funds. We have some of the largest clients in the world who want to co-invest alongside of us, and we have access to the corporation balance sheet. We can simply do things that others can't. The relationships we have with our investment professionals in 30 countries around the world that are sourcing opportunities each and every day, majority of which are bilateral, off-market and direct. Nearly 30,000 operating employees that feed us real-time information to make our investment decisions and then execute our value-add business plans in the Brookfield ecosystem. You just heard about the explosive growth of AI being led by the most valuable companies in the world. Those same companies are tenants in our premier office buildings around the world, they're in our warehouses, they're in our retail assets and they're in our science parks. That really creates a differentiated position as their partner of choice. Over the last 12 months, we've been active. We've steadily seen our activity pick up. We've acquired $6 billion of assets in over 100 transactions. Two examples here of a multifamily portfolio in the U.S. and the logistics portfolio in the U.S., both of which were north of $1 billion in asset value. We believe we acquired these at roughly a 30% discount to their peak valuation. And importantly, we're using our operating platforms to drive additional value through active asset management. We're also taking the opportunity to sell assets that are stabilized and core as investor demand comes back for that stable income. We've sold $3.7 billion in the last 12 months. Two examples here, ICD Brookfield Place in Dubai, widely regarded as the best office building in the Gulf region. We sold a 50% interest earlier this year at a record-breaking price in that market and a building in Central Paris that we sold at the end of last year for EUR 1 billion to a strategic investor, primarily a retail and mixed-use asset, which we had only owned for 1.5 years and generated excellent returns for our fund. We expect our monetizations to steadily ramp up through the rest of this year as our business plans complete from prior investments. Well, we really start with the themes, many of which you've just heard about. They play out in real estate as well. We're not macro top-down investors. We're still using our teams to source the opportunities for stressed, undervalued, mispriced and under managed investments. But we really look at these themes to see where is demand going. Demographics is an important one. We follow each of the age cohorts and where they're driving demand. Gen Z, the focus really on student housing, on urban co-living and on flexible and affordable hospitality; millennials in the family formation years that are looking for single-family rental, multifamily rental, family leisure, affordable housing; and the aging baby boomers that are living longer, they need senior housing, they need health care, increasing spend on R&D, driving life science demand and the accumulated wealth, which is really driving luxury hospitality. When it comes to digitalization and decarbonization, we see this transforming, both demand and operations for logistics, with the growth of e-commerce and mobile commerce in many markets which still are under-penetrated, increasing the need for logistics, assets, technologies, improving the operations of hotels and frankly, people blending business and leisure travel more, driving demand for extended stay. Decarbonization, we think, is going to be an increasingly important part of our strategy where we see many owners who don't have the capital or the expertise to improve their assets, to decarbonize their footprint. Given our relationship with our renewable power business, we can acquire these access, access renewable power and decarbonize in brown degree in transition strategies. And lastly, deep globalization. You just heard about the onshoring of manufacturing. We're seeing that benefit the logistics sector as well with decentralized supply chains and a growth in warehousing demand, as well as science and innovation, as governments around the world look to procure their own biotech, biomanufacturing and really growth in the innovation economy and the knowledge-based sector with tremendous support growing the need for life science assets. So overall, our real estate business is exceptionally well positioned for growth. The recent fundraising we've done supports that as we see our clients and partners come back into the market, recognizing this is the cycle to be investing in at the right point in the cycle. So far to date, we've raised $9 billion for our fifth flagship fund, with a solid book build and momentum going into the final stages of closing that fund, having only started the first one 12 years ago. We've completed $3.4 billion for our Real Estate Solutions business, which is a new strategy that didn't exist a few years ago, and we've raised $3.6 billion from our clients and partners in separately managed accounts and co-investments, as we see huge demand for specific asset classes and specific geographies around the world. So if I can leave you with one thought about the real estate sector, it's an incredibly unique time to be investing in it, given where we are. We're very excited about it. We've got the experience. We've got the expertise, the track record and the capital to continue to gain market share in this sector and continue our success. So with that, I'm going to hand it over to Anuj on private equity.

So as Bruce spoke about earlier, we launched our private equity strategy about 25 years ago when we actually formed our asset manager with our first-time fund. And in that time, we've delivered an incredible exceptional returns and built an incredible track record. This could literally be my only slide I showed today, and I think it would be a presentation well spent. It is a 27% gross IRR over 25 years, returning almost $40 billion of capital to our LPs. And I'm proud to say that for the private equity group, this is the highest returning and the best track record in the entire private equity industry. We -- we've been able to do this at a time when private equity has traditionally outperformed most private asset classes, including public markets, often with less volatility. But I would say that private equity has benefited from 15 years of low interest rates, easing inflation. And the industry is probably able to be a little bit lazy, generating most of its returns from revenue growth and multiple expansion, not really for margin expansion as an industry. That's all changing, and we think the future is going to be very, very different. In a normal rate environment and a normal inflation environment, we're going to have to go for a roll of the dice private equity to roll up your sleeves private equity, where you actually generate returns by making your businesses better. This suits us very well because for 25 years, we have been doing exactly the same thing. We've been buying businesses for great value, improving their net margins and free cash flow margins and generating exceptional returns, as you saw for our partners. By being focused on value and these operational capabilities, we've developed a playbook that is repeatable and applies to every business we own across the world in every sector we invest in across the world. And we really just do a few things. We focus first on operational excellence. Think of this as the cost line in your P&L, where we focus on organizational design, on procurement, on supply chain, on really just running the business in a more efficient manner. We also focus on commercial execution. Think of that as your top line revenue, growing that organically through pricing actions, renegotiating contract terms, bringing new products to market, cross-selling initiatives. In addition, there's strategic positioning, which is prioritizing the business lines within a business that are often the most profitable, and ensuring that you position a business for the future so that you can generate better returns through an ultimate exit. The last component is digitalization. This deserves a component on its own. As you've heard [ Ciko ] speak about earlier, AI and not only AI, but also automation, is going to bring substantial efficiency and productivity gains to all the businesses that we own and invest in. Another key pillar of our strategy is not only operating the businesses better, which we've done very well for 25 years, it's also identifying great businesses. Now I know that sounds a bit cliche. No one would come up here and say, we like to buy bad businesses. We buy good businesses, but it's not just what we buy. It's how do we define a good business? We define a good business, something that's really core to us, as things that form the backbone of the global economy, provide mission-critical and essential products and services. And as a result, are often market leaders that can dictate pricing and generate sustainable cash flow over the long term. Infrastructure like characteristics in services or industrials is what we really focus on. I spoke earlier as well about the Brookfield economy or the whole Brookfield ecosystem. And we are huge beneficiaries of that $1 trillion of AUM in 300 companies around the world as private equity. Those differentiated insights and knowledge that I touched on, help us to make decisions better in situations where we're looking at an investment where we can sometimes have a unique point of view. So often, there will be a situation where there is a business that's actually a great business. It's perhaps an unloved sector or it's misunderstood. We can take a contrarian approach, as we did with Westinghouse. Sometimes there are businesses that are very -- in a very complicated holding structure and you have to execute quite a unique carve-out like we did with Clarios. And other times, you need to have the flexibility to play up and down the capital stack in order to partner and be a partner of choice to the original founder of a business like we did with Jim's Education more recently. A great example of this is Clarios, which is the leading global manufacturer of advanced automotive batteries for the world, with about 1/3 market share. 1/3 of every car in the road today has a Clarios battery, but actually 50% of all the newer AGM were advanced glass mat batteries that are used in more complicated vehicles or electric vehicles have a Clarios battery. This business is an incredible business. It generates -- it always generated substantial cash flow, but it was probably misunderstood within the conglomerate that was held, and we were able to execute a complicated carve out. We were then able to implement a whole bunch of operational improvements, focusing on consolidating our manufacturing and recycling footprint and improving and optimizing our logistics to drive significant EBITDA and free cash flow generation, as you can see here. We've been able to position the business now as quite a long-term cash generator that is a real market leader and a price setter, which sets us up great for a near-term monetization event. Now if we step back, what we've built in private equity, this ability to source amazing opportunities, use the overall Brookfield ecosystem to underwrite opportunities that perhaps others couldn't and use our operational capability to drive better returns. This platform, all the hard work that has gone into it over the past 25 years has been really built out. It's $130 billion of AUM around the world, 190 investment professionals. We are already in every market that we want to operate in, and we already invest in every sector that we want to be in. And through these established capabilities that we have, really, again, leaning on our operational capability, we've been able to develop a process that's repeatable, and we can keep doing this for the next 25 years and generate the same returns. But as Hadley touched on earlier, building this platform, doing this hard work in creating our flagship strategy, allows us to have the foundation to launch new strategies and new streams of revenues for Brookfield Asset Management. As a result, we've been able to launch very recently a structured investments fund, providing hybrid capital solutions at all levels of the capital structure. If you think about it, if we can't buy a business, perhaps we can partner or finance the business. We've been able to launch a financial infrastructure product, focusing on the financial backbone of the global economy, where we think there's a tremendous amount of investment required and a regional fund in the Middle East that you've heard David talk about earlier, where we are truly the private equity leader in that market and can bring specialized knowledge and specialized investment opportunities to our partners. Now when you take all that together with the exceptional long-term track record that I outlined earlier, what it really means is we can scale dramatically in our flagship and in our new strategies are fee-bearing capital. But the best part is we can actually do this without necessarily needing any significant additional resource or cost driving tremendous improvements to our margins and our fee-related earnings. Thank you. And with that, I'll be turning it over shortly to Craig, who's going to speak about credit. Thank you. [Presentation]

Great. Hello. Welcome to our credit panel. We've -- you've heard a lot about credit today, a little bit about our partner managers. Our job is to bring to life some of the trends that are happening in the market, what we're seeing, and really how that's combined to, I'd say, quietly over the last many years, we've built one of the largest private credit managers in the market. And as you also heard earlier, we think we're just getting started. We've done that a few different ways. One, is organically over 25-plus years in real estate infrastructure, renewable power, lending. Nila and Christina from our real estate and infrastructure businesses are going to be talking about those strategies. And you've also heard about this concept of partner managers. You've heard from a Brookfield perspective, the strategy, the logic and the benefits to our clients, but you'll hear directly from Jared and Isaiah from Oaktree and Castlelake is 2 of our manager partners. So with that, let's get into it and we'll start big picture. We know that the private credit market is large. We know that it's growing. Investors are putting more capital into the space because they like the returns and borrowers like the attributes as well. So if those are the headlines, we'll get into the details with this group. Jared, you've been at Oaktree for over a decade. You've been working under Bruce Karsh and Howard Marks. What's it like working? Maybe you'll start big picture with working for 2 legends and people that started it. Maybe start with that and then also maybe pivot into what's Oaktree's perspective and what are you seeing in the markets today?

Okay. Well, to answer your first question, working for Bruce and Howard is inspiring. So Bruce and Howard really were the architects or some of the architects of the entire sub-investment credit investment landscape for institutional investors. And as you heard, Howard say in the video, he's been doing this a long time, and he feels that Oaktree has perfected the art of credit investing, private credit as well as we do public credit at Oaktree as well. That's an inspirational [ BARDA ] set for those of us who work at Oaktree, to work for the people who sort of invented the game and are still at the top of the game as leaders in this field. And so Howard -- and you mentioned Bruce Karsh as well, who is his co-founder and partner, have been doing this together for 35 years. We've been in all parts of the credit market for that entire span. And I think our brand at Oaktree is synonymous with how people think about credit in the asset class, and so being a part of that is a huge privilege and it's also a huge inspiration.

And Oaktree has a large opportunistic part of the business, but also a large and growing performing segment of the business, which is where we're seeing a lot of growth. So maybe you can talk about why investors are putting more capital into the space? What are the things that they're drawn to as opposed to the liquid markets?

Sure. So if you just zoom out big picture and think about the state of private credit, and I'm talking mostly about corporate credit. I think some of the other panelists will talk about some more specialized areas within private credit. But this is a market which Oaktree has been in since 2001, which is a little unusual because the market really didn't take shape into its current form until post the global financial crisis. And since that time, the market has grown from about $300 billion in total assets to today, roughly about $1.5 trillion in total assets. So tremendous growth over a 15-year period. And by most expectations, that will double again by the end of this decade. So about a $3 trillion asset class as we look forward through the sort of the 5-year plan, if you will, for Brookfield and for Oaktree. That's a lot of growth and a lot of growth still to come. And I think what we believe is fueling that growth are some fundamentals. Number one, there's demand from issuers who are unable to satisfy their financing needs in the bank market. You mentioned the bank market has some regulatory hurdles. It's somewhat retrenched from the way the bank market used to operate in support of sub-investment grade issuers on the loan side. Number two, it's demand from private equity. I can't remember if the last panel hit on this particular statistic, but in general, private equity is sitting on more dry powder today than at any point in history. And a lot of that capital as it gets put to work, we'll be relying on private credit to help facilitate transactions. And then last but not least, it's demand from clients, clients of ours on the credit side, who see private credit as an opportunity to invest in the top of the balance sheet in high-quality businesses and earn a premium return over what's available in the syndicated markets and usually also do it with better lender protections. So we're seeing demand across the board. And so I think we're quite confident that, that growth is going to materialize.

Great. Christine, in Infrastructure, we heard the word ecosystem a lot earlier in the day today. But maybe you can just describe a little bit what we're seeing in the infrastructure lending space and how that fits into the broader Brookfield Infrastructure business?

Yes. I mean the infrastructure and renewable private credit market has just grown tremendously over the last 10 years. Yet what's really interesting, I think, about infrastructure private credit is that it's a new and growing asset class. So when we started our infrastructure and renewable private credit business back in 2015, it really came off the backs of, I think, similar themes, Jared, that we're seeing, and we'll likely I think hear about on this panel is that it was a pullback and market dislocation in the bank markets. So there is also tighter capital requirements as well as regulatory changes that pulled back traditional bank lending, particularly in project finance. That created a significant gap in the market where we saw a really interesting opportunity set to step in and provide capital to meet the needs of a growing sector. Since then, the expansion has just been really tremendous. And we've been able to really step and provide flexible and longer-term capital, which is really valuable. As we think about making large-scale investments and initiatives within digitalization, decarbonization and deglobalization, our private credit will play just such a critical role in this expansion. I think we heard the statistic earlier that it is $94 trillion of financing needs just over the next 2 decades. It's pretty clear to me that infrastructure and renewable private credit will play a very significant role in that growth.

Nila, on the real estate side, I think some of the same trends are present. But Brad also went through some statistics and sort of a state of the market, which included some really compelling opportunities on the equity side, but also on the debt side.

Absolutely. I mean Brookfield has been investing real estate debt for over 20 years. And I personally have been in this business also for over 20 years. The macro backdrop for what we're seeing in terms of opportunities for real estate credit is really compelling. And we do think this is really going to drive growth for Brookfield's real estate private credit business. The commercial real estate lending markets, $6 trillion, and the banks and the theme that we're talking about in terms of bank retrenchment, we're seeing it live and in action today. Banks historically have about 50% of commercial real estate lending in the first half of 2024. They're down 26% year-over-year and alternative lenders up 39%. So this growth is real, and we're seeing it daily. And as we grow our buckets of capital within Brookfield's real estate credit business, my funds, our insurance clients are definitely going to benefit from that growth.

And in some cases, it's the banks who are moving back. But in other cases, we're simply partnering with bank in order to provide capital.

Yes. I mean we have over 300 capital markets and financial partners that we not only look to partner with in terms of doing transactions alongside of them. But now with this bank retrenchment, we're all getting more creative. And I think that is also going to benefit us as well. And so again, going back to some of the things that Bradley spoke about in his presentation, both a combination of the values resetting in real estate, will present us an opportunity to invest up and down the capital stack at a more insulated basis. And then also that GAP capital, he showed kind of those wallet maturities and Jared also mentioned just the private equity capital that's sitting on the sidelines, we're going to have a really great opportunity to put capital to work.

Isaiah, Castlelake. Welcome to the Brookfield family, to the credit business. In fact, the transaction hasn't quite closed still another 6 days I think to go. But nonetheless, welcome to the stage into Brookfield. Maybe you can describe a little bit what is Castlelake across your $25 billion of assets under management. What are the investment strategies? But then it'd be interesting to hear what you and your teams are seeing across asset-backed financing on the equipment side in aviation and financial?

Yes, absolutely. So Castlelake, we are a pure-play asset-based investor and private credit lender. We've been in the market since 2005, as we actually are one of the oldest brands within this dedicated market. And we cover the major food groups within the securitized asset-based opportunities. So aviation equipment assets, as was mentioned, consumer finance, small business finance, mortgage finance. In terms of the opportunities we see today, I think it is thematically very similar to what my fellow panelists have talked about, but just simply newer. When we look at what's going on with Basel III, Basel IV, the new rules from the FDIC and the OCC in terms of bank capital requirements, that is driving banks away from doing their core business of lending capital in the way that they're at least used to. And so the asset classes that I mentioned are particularly hurt here in the states and in the European banking markets and providing an enormous opportunity and vacuum of capital where private capital is starting to form. I think unlike some of the other asset classes being so new, penetration is really at its early stages. So we see an addressable universe of about $7 trillion of markets that we think is interesting, probably 4% penetration today from private capital solutions.

And let's stay on that theme. There's -- we know that there's capital coming into the credit space, private credit space. In the current environment, spreads have come in, inflation is nicely coming down, which means base rates are coming down as well. Jared, Oaktree has invested across many cycles. Howard and Bruce Karsh are really the philosophy at Oaktree is very focused on risk management. Describe a little bit at Oaktree just the current environment and how you're thinking about managing capital for investors, but at the same time, growing and deploying capital because there are tremendous opportunities.

Yes. I'm smiling because you mentioned the market cycle and Howard, of course, literally wrote a book on the market cycle and mastering the market cycle. And so we feel like we're fairly well equipped to navigate through whatever moment in the cycle we happen to be in. Howard mentioned one of his mottos, he graciously attributed to the firm, but it's really Howard saying about avoiding the losers. He has another one, which is that, "We don't know where we're going, but we ought to know where we are " We don't keep economists on staff at Oaktree, we're sort of famous for disabling things like market timing or having predictions that are informed by economists forecasts. But we do spend a lot of time thinking about where we are in the current moment. And I think that served us well. In moments of dislocation, our opportunistic side has been foot forward. Moments recently, like in the beginning of COVID when there was a big dislocation were very prolific for us on the opportunistic side. I think the way we would describe the market right now is, yes, base rates appear to be coming down, we'll learn more about that later this month. Yes, spreads appear to be tightening. But big picture, if you look at private credit right now and you think about maybe an archetypal issuer of private credit, you're probably looking at 500 basis points over SOFR. If you put a portfolio together of loans like that, you're probably looking at a 9% to 10% unlevered return, maybe with fund leverage net of fees, that's probably a 12% to 13% type portfolio. On a historic basis, that's quite attractive for first lien credit. If you think about the 35-year history under which Howard and Bruce have been investing, high yield has returned 7.5%. If you think about the 15 years where private equity has gone through this massive expansion, for most of those vintages, private credit was probably offering 5% to 7% versus where we're at today. So I think there's still very good opportunities as like I said earlier, we're seeing a lot of demand. I would maybe just put one word of caution out there, which is this growth has happened basically unimpeded for 15 years. And if we double again as people are predicting over the next 5 years, that would be growth on a historic basis without a credit event or a credit cycle, to come back to that word. And I think at Oakshare, we feel like we also need to be prepared for some sort of event. We're not predicting it, but we want to -- it's another Howard expression is we can't predict, but we can prepare. You can see we're full of expressions from Howard at Oaktree. And we want to build portfolios that are prepared. So on the private credit side, what does that mean? I think that means looking for companies that will perform well and be defensive if there is a recession. I think it means documentation, trying to document credit agreements in ways that have lender-friendly protections, and diversification. So building a portfolio that will be resilient from diversification. It also means having opportunistic capital as well. So we're prepared to deploy into that environment.

Right. Yes, I think that's helpful. And within Brookfield, we often talk about the ecosystem and playing to our strengths, real estate and infrastructure and renewables being some of them. What does that mean in the real estate market today? Again, I like one of Brad's pages earlier that showed we're sort of turning the page on where we are in this part of the real estate cycle. But where are the opportunities, but also some of the risks that we're thinking about today.

Yes. Look, I guess -- I'm not good at tag lines, but I'd say maybe being creative and being flexible.

They're not my tag line.

Well, again, I think one of the things we do while at Brookfield is we're creative and we're flexible, but we also understand what our advantages are. And so in this market environment, particularly in commercial real estate, where there's a lot of capital chasing transactions, it's very important that we leverage our operational expertise and our access to large-scale capital to identify opportunities that uniquely position us to limit the competition and seek transactions where we can get outsized returns. I think we do that pretty well. There are a few examples in our -- that we've been working on now where our ability to step up to speak for a $1 billion transaction, that large access to capital, both in our funds and our insurance clients and our partners, that we can collaborate to do transactions with. And we're working on another deal now that I think is a perfect example of utilizing the Brookfield ecosystem. We're currently close to signing up a new transaction. It's $500 million science and innovation. And we are -- because we own a company who has great operational expertise in this area, we're able to leverage those boots on the ground and the years of experience they have, building and operating those businesses in order to help inform not only how we identify those opportunities, but also how we structure them. And I think better structuring is something that we get the benefit of because we have this operational expertise. So I think it's important that we focus on our operational advantages and our access to capital to find the unique opportunities that get us better returns.

And Christine, on the infrastructure side, I know that's true as well.

Yes. I mean -- and I echo. I think everything that's been said by my fellow panelists, that Nila, like that type of collaboration that you're talking about, is built into our underwriting process. We are just experts and -- we have such a deep history of asset expertise, but owning and operating. And we're able to really use that as an advantage as lenders. So especially when we're thinking about technical due diligence, but really developing a view in terms of asset value, it's just critical to be able to really work with our colleagues in terms of thinking about what that is. Our underwriting process is really focused on loan to value, and it makes us very distinct and very powerful, especially as we're leaning into credit, leaning into businesses and able to really develop a view in terms of what that value is.

And I'll shift gears here a little bit. We've heard about the partnership model earlier today and how that's really turbocharged our credit business, our deployment and really the growth that we're able to offer to our clients. So I want to hear about it from the Oaktree and Castlelake perspective as 2 of our partners. Jared, we're 5 years in through the partnership now with Oaktree. It has been a tremendous success by all measures. But describe a little bit about what it has been like from the inside of Oaktree as this partnership, we're now 5 years into it.

I'm relieved that you are describing it as a tremendous success. So that feels good from the Oaktree side. I'm sure as on the edge of the seat wanting to hear how we feel about it on the Oaktree side. I will go back to what -- I was listening to Hadley's remarks earlier, and she talked about the criteria for a successful partnership. She mentioned she wants partners that would be -- Brookfield wants partners that will be additive, scalable, be aligned with Brookfield and have a good cultural fit. And those were all the exact same things that Bruce and Howard were thinking about in terms of forming a partnership, where they too form a partnership for the firm they founded. And I think we would reciprocate and say, all of those things have been -- and we felt like we were additive. I think you're demonstrating that we have been. We were hoping that Brookfield would provide us with resources, which you have, capital and otherwise. And maybe as icing on the cake, we wanted to be plugged into that ecosystem that Nila and Christina have talked about. And I can say personally that I engage in calls with the representatives of Brookfield's big pillars in areas like real estate, in areas like infrastructure and energy transition, where Brookfield is the market leader on the equity side. And as a credit investor, we get access to the thought leadership from Brookfield, which has been hugely value additive. Plus I learned how to wear blue tie with white shirt. We'll get [indiscernible] geared up. We'll get there, 6 days.

Yes, 6 days.

We'll take you shopping here at Brookfield Place.

And as a given that the transaction between Brookfield and Castlelake is about to close, I'll ask you a slightly different question of Castlelake could have partnered with any number of different firms. We're thrilled that you're going to be part of the Brookfield family. Give us a little bit of insight into -- really 2 questions. One is, why did Castlelake management team feel like something needed to be done? And secondly, just the thought process with Brookfield going forward.

Yes, absolutely. So as was mentioned, I think that within the asset-based markets, we are seeing a tremendous momentum change. The analogy I like to use is, we feel like we are the dog who caught the bus, but the bus is moving at 40 miles an hour. So we quickly came to the realization that if we were going to ride this wave of quickly scaling into this market, even though we've been doing it for 20 years, we needed to step into a different league. We needed a partner who is going to open doors and provide multiple different types of capital. And so the time was now. As it relates to Brookfield specifically, there's really 3 things that I look to. So the first is opening doors to the LP community. Brookfield obviously has one of the deepest penetration with the 50 largest allocators in the world. We believe right now that this is a market that is going to scale and actually could become one of the main ways to bring stability to the nonbank lending market. And so the asset-based markets need that type of leadership. And I think Brookfield brings that door opening with the LP community. The second is insurance capital. With BNRE, insurance is particularly well suited to finance the asset-based markets. If you look at the securitization technology, both private and public, insurance capital makes the vast preponderance of the investment-grade rated stack, even down into the upper echelons of the high-yield market. And so we knew that actually having private market solutions with BNRE is going to drive ultimate success for Castlelake in some of the sub-asset classes that we've not been able to compete, not having insurance solutions historically. And then finally, it is the ecosystem. At Castlelake, we view ourselves as having our own mini ecosystem. And so being able to draw on those resources and find maximum value, very much fits culturally with who we are.

I think we have been experiencing firsthand the benefits of the ecosystem in the collaboration, but also how insurance capital is valuable and it drives growth in earnings, but it also can be very strategic in helping us to grow the business and really has opened up a whole new area of growth for us in insurance solutions that I think we're just scratching the surface of today. Why don't we move to a fun one to end on. We talked about partner managers. One of our other partners is a company called Primary Wave, which is a music royalty business. They control 75,000 songs, some amazing artists, generate very stable cash flows over decades that are generally uncorrelated to the economic cycle. But then the Primary Wave team works to grow that revenue through getting movies made, commercials, social media and a whole variety of areas to generate that growth. It's fun to scroll through and see the artists, certainly some recognizable names. So to end the final question, I'm going to put each of you on the spot a little bit of who is your favorite Primary Wave artist and why?

Wow. Wow.

You've got a lot to choose from.

All right. I'll say this. I can originate loans, but I cannot sing. However, I love karaoke, and I love singing Whitney Houston during karaoke. So I'm going to go with Whitney.

Whitney Houston. Perfect.

The seating order really matters, now I realize on panels. I am also a Whitney fan, but -- and I love Karaoke, Nila. But I'm going to have to go with the artists where I can sing almost every word, every song, Boyz II Men.

I'm looking forward to hearing Christina sing Boyz II Men. It sounds like we're probably all had our formative years around the same time, but I'll go a different direction more to the alternative and indie rock scene of the same generation. I saw the Counting Crows flash by, so I'll go with the Counting Crows.

Last word.

Minnesota-based firm, you have to say Prince.

Prince?

In purple tie.

There you go.

Excellent. Okay. We'll end on that note. This concludes the credit discussion. And hopefully, we've brought to life a little bit what we mean when we say we have a large-scale platform, several highly specialized and scalable investment strategies and teams within each of them, and why there's a lot of capital that continues to come into the private credit space, which really is going to be driving our growth. So thank you. We'll wrap it up and hand it over to Connor to do a summary.

Great. So in terms of wrap up, first and foremost, we want to thank everyone for taking the time today and your ongoing interest and support of Brookfield. And before we get to Q&A, just recap some of the key takeaways from today's presentations. First and foremost, we are very excited about our business plan and the growth trajectory of our business. We feel we have a business model that is well suited to not only support but enable that growth, again, accessing the largest, fastest-growing, deepest pools of capital being allocated to alternatives and turning around and investing that at scale into the largest and fastest-growing investment themes on a global basis. The market opportunity is there to support our growth ambition. We have at least a 10-year runway, probably many decades beyond that in terms of market support for our business. Secondly, we have a long-standing track record of consistently delivering very attractive risk-adjusted returns on behalf of our LP partners. This is the bedrock of our business. We will never compromise on this, and this is something that is very difficult to develop and almost impossible to replicate. Third, as David Levi spoke about, it's great to talk about growth and investments in exciting new trends, but this is really all about our clients. How do we deepen our existing relationships, how do we expand our client set and how do we increasingly access those new and growing buckets of capital that have a long runway in terms of incremental allocation to our key segments. We have a long and consistent track record of broadening our product base to capture new market opportunities and importantly, leverage our existing leadership, and that drives not only growth in our business, but operating leverage as we expand going forward. And lastly, it seems to come up in every presentation, every discussion, the Brookfield ecosystem. Our visibility over capital flows, the interactions between our portfolio companies allows us to identify key investment trends and dynamics within a market well before others, ensuring that we are always on the front foot in making the most attractive investments in the largest themes that are growing around the world. So with that, we would like to thank everyone for coming today, and we certainly have some time for Q&A. I will remind everyone, please wait until a microphone comes to you such that everyone can hear your question.

Connor, thank you very much for hosting the Investor Day for us today. My question was on the positive commentary on the investing backdrop in real estate. I'm wondering, does this apply to all segments, including office and retail? And also, we're getting ready to enter a period of Fed rate cuts. How beneficial will this be for real estate overall? Or should we be more focused on the tenure?

Now is the time for opportunistic investment in real estate. There's this rhetoric about the tail of a small portion of the market that is continuing to work through some small leverage structures. But the reality is the operating fundamentals are improving very dramatically. As Brad said, demand is improving, but there's no supply. That's pretty simple to understand. And then perhaps less visible is the financing markets for real estate have completely unlocked in the last 2 to 3 quarters they are functioning. They are increasingly liquid and that is creating a market for opportunity. But it lends particularly to those like us who have the experience to move quickly and take advantage of situations where perhaps others have less access to capital or haven't positioned their portfolios as well. In terms of your question, does it apply to specific asset classes, we would say this is very, very broad-based. But in fact, some of the asset classes that have been the poster child of recent struggle are perhaps the ones that are creating the greatest opportunity today because with that bounce back in fundamentals, they are coming off the lowest base, and that's creating a lot of attractive opportunities. We would say it's very broad-based.

Alex Goldman from -- Alex Blostein from Goldman Sachs. I had a question around insurance. It's a huge driver of growth for you guys for the next 5 years. I think $250 billion. I think 50-ish or so you said third party. So that kind of leaves $200 billion from kind of captive insurance. That implies quite a considerable amount of, I guess, acquisitions. So kind of how do you think about capacity to do deals and given the fact that Brookfield is still relatively new to the insurance base against some of the larger competitors? What gives you guys kind of the right to win in the insurance space?

Certainly. So the Brookfield Corporation team is coming on next, and they'll highlight some of the growth initiatives in insurance. But it's really 2 things, and then I'll leave it to them. One, there's an incredible organic growth engine through the 3 different businesses they have acquired in recent years that's writing $15 billion to $20 billion of annuities on a run rate basis. That's about half that number right there. And then secondly, there's the opportunities to keep doing bulk transactions of reinsurance blocks. So those are the 2 big ones. And then honestly, there's always opportunistic M&A upside as they have demonstrated pretty actively over the last couple of years.

Connor, over here. Cherilyn Radbourne with TD Cowen. This question I asked to Brad to some extent, but I was just wondering if there's any way to sort of quantify the lead and the first mover advantage that you have in renewables transaction -- transition and infrastructure? And just how strategically that -- how strategically important that is when we think about where capital is going to flow over the next 10 years.

There's a few important ways to dissect that. But I would perhaps break it into 3. Start with renewables. One thing that's important to recognize is we've mentioned many times today that our asset management business is only 25 years old. But if you go back beyond the originations of our asset management business back to when we were a corporate simply investing our own balance sheet, go back to the 1980s, we had a very concentrated portion of our portfolio in hydroelectric power at that time. People didn't even call it renewables back then. We've had a dedicated team focused on renewables for 40 years. That is unmatched. Where does this show up in our business today? We'll come at it from 2 perspectives. The team did a great job explaining just the scale and the significant capital requirements in these themes of decarbonization, deglobalization, digitalization and infrastructure and renewables. Scale is a huge competitive advantage in that space, but scale oversimplifies it. It's not just scale of capital, it needs to be matched by scale of operating expertise. These are the most critical inputs to the largest and fastest-growing companies around the world. They don't want to go to the lowest cost provider. They want to go to the person who delivers on time who meets their needs, who understands the dynamics of the business. So I would say that experience in that scale goes beyond just scale of capital. And that's the real differentiator in our business. And I would say that's the one that's tougher for others to replicate quickly. The third point I would highlight is when it comes to our asset management business and apologies for being redundant here, but it is so much easier to grow, expand, diversify, scale your business when you already have a leadership position. It's easier to do a geographically focused strategy. It's easier to do a product-focused strategy focused on a key investment theme if you already have market-leading expertise and experience in investing through that, through your flagship business. And that is really, as Hadley mentioned, what is driving a lot of our growth over the next 5 years, and in particular, a lot of our margin as being able to step out into other complementary strategies is very beneficial to our profitability.

Mario Saric from Scotiabank. Just on the 16% 5-year CAGR for fee-bearing capital, you had a couple of slides showing it broken down by product offering, whether it's insurance growth, flagship funds, complementary funds. If we think about the 16% from a regional perspective and just coming back to what you just discussed in the previous question, do you anticipate outsized growth from countries or regions where you already have a dominant competitive advantage in that market? Or is the outsized growth coming from becoming a top 1 or 3 player in markets where you aren't that today? If it's the latter, can you share potentially where you see the greatest growth opportunities?

It's a great question, and I'll give a somewhat boring answer, but it's because there's 2 offsetting dynamics. Today, around the world, 75%, 80% of our business is in the largest, most developed countries and regions around the world: North America, Western Europe, OECD countries. We would expect that, that ratio, 75%, 80% largely to stay consistent. And what drives that is, yes, there is probably faster relative growth in some of the newer markets. But the reality is that is coming off a lower base with smaller check sizes. You can have slower growth in those large established markets and on an absolute basis, that is just simply much bigger dollars. So I would say our breakdown of being 75% to 80% in large -- the largest markets around the world, the OEC developed countries, we don't see ourselves staying away from that in any material way.

Mike Cyprys from Morgan Stanley. Just a question as you think about the moat that you have around the business today, how do you think about growing and expanding that moat as you look out over the next 5 to 10 years?

Certainly. David had a slide in his presentation where he said we service 80% of the largest institutional investors around the world. And one thing that's important to recognize about our business is we've never sought to grow for the sake of growth. We sought to grow to better service our clients. And in doing so, we grew ourselves. And that's because the largest portion of our business is servicing the largest institutional investors around the world. Their pools of capital are growing very, very rapidly. And increasingly, there are fewer GPs that can meet their needs around scale, diversification of strategies. And the ability to, as David so properly put it, be a partner to them in growing their own business. So scale, undoubtedly, I know it's a simple answer, that continues to be the biggest moat. We service the biggest institutional investors around the world. They need to make bigger allocations to this space. There are a few people who can meet those needs. We've scaled with them for 20 years. We're going to keep scaling with them for the next 20.

Brett Reiss, Janney Montgomery Scott. On an earlier slide, the IRR on the renewables business was lower than your other business segments. And I'm wondering with the increased volumes you're expecting, do you think margins are going to expand? And could that be a reason why Brookfield Renewable has been a laggard stock market performer this last year?

So there's a little bit of a sensitivity there when we blend our returns across a number of different products to provide a gross and net across an entire platform. The most important thing to recognize when we publish those returns is across every single one of our asset classes, real estate, infrastructure, renewables, private equity, credit. We have delivered returns at or above the target returns of the funds we are offering to our LP partners. And the reality of it is within infrastructure and renewables, the risk profile that a lot of that capital is being invested at is materially lower than, let's say, our opportunistic private equity fund or our opportunistic real estate fund, and therefore, is expected to generate a lower return, but equally attractive on a risk-adjusted basis. So the fact that renewables and infrastructure are slightly lower than some of the other platforms, I would say is very much a function of the products that we are offering to the market and the risk profile that we are investing in within those strategies. To your question about with all the demand for these products and capital in these investment themes, is there an opportunity to see margins expand? Let's leave no doubt, yes. Right now around the world, whether it's an infrastructure that [ Siko ] talked about or renewables that Natalie talked about, there is a supply-demand imbalance where there is more demand for the product, then there are ready to build projects. And any time there is a supply-demand imbalance, it creates an opportunity to generate incrementally higher returns. We maybe have time for one more question. I know we're standing between this and lunch. Any more questions from the audience? Seeing nothing. We'd like to thank everyone for their time and their interest and their support. Please enjoy lunch, and we'll be back with Brookfield Corporation after the break. [Break]

Please welcome from Brookfield Corporation, Angela Yulo, Vice President and Head of Public Investor Relations.

Good afternoon, everyone, and welcome to Brookfield Corporation's 2024 Investor Day. Thank you for joining us today, both in person and online as well as those who attended Brookfield Asset Management's presentation earlier. We have your interest in Brookfield. Today, we have a great lineup starting with an introduction by our CEO, Bruce Flatt; then Nick Goodman, our President, will provide an overview and the financial outlook for the corporation. Next, Ben Brown, Head of the Americas region; and Kevin McCrain, Head of Retail, will present the update on the real estate market; and Sachin Shah, CEO of Wealth Solutions will provide the update on the business. Within that segment, we'll also share a case study on the partnership with American National. And you'll get to hear from the panel and the different perspectives from the Wealth Solutions team. Finally, we'll take questions at the end of the day. For those of you in the room, we will have a mic roaming around, and we ask that you please wait until you receive the mic before asking a question to ensure everyone can hear. As for those joining virtually, you may fill in the text box on your screen. As always, I'd like to remind you that during the Q&A and throughout today's discussion, we may make forward-looking statements. These statements reflect our current beliefs and estimates in relation to expected future events and trends and are subject to known and unknown risks. Past performance is not a guarantee of future events, which may differ materially from such statements. For further information, please see our filings with the securities regulators in Canada and the U.S. and the cautionary statements contained in our presentation, which are all available on our website. In addition, when we speak about Brookfield Wealth Solutions, we are referring to Brookfield's investments in this business that supported the acquisitions of the underlying operating subsidiaries. And with that, I'll hand it over to Bruce.

Okay. Good afternoon. If you didn't like me the first time you're getting a second -- you're getting a second run, but I got a different topic. So look, we're here to talk today about Brookfield Corporation. After the spin-off of Brookfield Asset Management, we've been reforming the business to take it to the future. And as you know, we're a global investment firm focused on building long-term wealth for everybody within the firm. And I'm going to take it back and give a little bit on the history first and then take you forward. But we did this [indiscernible] figure the other day, which I think is quite -- tells the story. For the past 30 years, we've generated $225 billion for the constituents that we invest money for, public and private. And we're quite excited about that for all of our constituents. That is an 18% annualized compound return for the shareholders of BN over that 30-year period. So that isn't $225 billion, that's all of our constituents, but the parent company is compounded at 18%. When you compare that to some of the other great companies in the world, and this is a 30-year comparison of those numbers, Amazon hasn't been around for 30 years, but it's got an excellent track record: LVMH 14, Berkshire Hathaway 13, Walmart 12, S&P 511. The thing that struck me the most about this slide is that if you compound at 12%, you get 2,919% returns over a 30-year period. And if you compound at just 6% more, you get 13,873%. So it doesn't sound like a lot more, 18% to 12%. It's 600 basis points, but the numbers are very dramatic as you compound over very, very long periods of time, and just a little bit more. And that's the success of a great company. Taking us to today. We have one of the largest pools of discretionary capital in the world, which really is 3 components. We have our own perpetual capital base, which is about $155 billion. We have a flexible insurance float, which is $110 billion today, and Sachin is going to tell you how that grows. And we have our investment manager, which you just heard about if you were here earlier, which continues to grow and is scaling. Those 3 things give us large, large flexibility to do many things that others can't. Part of the success of that is we've methodically over 30 years, and we'll continue to do it is to build out access to as many layers of capital as possible that allows us, again, to do things that others can't. We have access to institutional investors, private wealth, insurance, public markets and our banking and credit relationships. Many have some of these. Some have all of them, not many as big as us. As we continue to scale the business, it should assist us grow. The 30 years has been good. I actually think -- having been here for all those 30 years, I actually think that the business is better today than it's ever been before. I think actually the team that was up here earlier that people were at Brookfield Asset Management, when I was here 30 years ago, I was not that good. Maybe I'm not that good today. But I think we're positioned to be able to compound at 15% returns today and into the future. Our approach is very simple on how you create long-term wealth. And it's really just 5 things: one, invest in good businesses; two, run them well; three, allocate the excess cash that's generated wisely because that's the future of the business, align everyone with the long-term objectives and evolve with the world that's around us. I wouldn't have put that one in 20 years ago, but I think it's really important. And maybe I'll just take those 5 in order. The secret to wealth is buying good businesses, that can deploy cash at high rates of return. So it's often the business you buy, but more importantly, if they can consume capital and earn returns at high rates, they're really great businesses. So we try to identify high-quality businesses, focus on them and grow them in a continuously and productive way and build resilient earnings in those. That has led us to buy essentially the backbone of the global economy, renewable and power and transition infrastructure, private equity, real estate, many of the businesses you know, we own. All of those are -- have stable, largely contracted and growing revenues, and that's been the secret of our success. There's many ways to make money on a scalable basis in 30 countries in the world, buying these type of backbone infrastructure in that way has allowed us to stay to out of and earn good returns. Second, running the businesses well. We focus on operational improvements, try to run in a very disciplined cost fashion and leverage the expertise we have in the businesses and move people around to optimize what we have. Said very specifically, operating business as well is often or most often, the difference between good businesses and great ones. And we're always trying to buy and build great businesses. Third, the wise allocation of the cash generated by businesses is what is really the difference of wealth creation over the longer term and not. And it's because what you buy today is only a fraction 30 years from now, what you will have, what you invest the excess cash flow that's generated during the next 25 years is extremely important to the overall return out of that investment. So our goal is to build new businesses and create ones that can consume cash and earn high rates of return, reinvest it back into those businesses to be able to earn that and opportunistically return capital to shareholders when it makes sense. So either share buybacks, distributions as we've done many times and to keep doing that throughout the business. Today, currently, we retained 75% of the cash flow. The easiest thing we could do if one wanted it was to take the dividend up by that 75%, pay it back to you. Firstly, it's tax inefficient. Secondly, it creates less freedom in the business. The success of our business is having freedom when the markets were not as opportune to be able to do things that other people can't. That's allowed us to scale Brookfield Asset Management in 25 years into one of the preeminent investment alternative franchises in the world. Today, the $1 trillion, I'm sure it will get to $2 trillion and more. It's allowed us to build 4 market-leading businesses in renewables, infrastructure, private equity, real estate and those are among the best in the world, all of them. It's allowed us to -- from a start 4 years ago, says $2 billion, I don't even know how the $2 billion. I guess that was one small business we had. But from nothing 4 years ago to $110 billion today and growing. And we think we can scale this business significantly. It generates -- it's coming upon $2 billion of profits a year, and it will keep -- it should keep growing. While doing all of that, we've returned $20 billion back to shareholders over the last 5 years in the reform of distributions, buybacks and special distributions. One of the things we focus on very significantly within the business and within everything we do is to make sure that we align everybody with the long-term objectives. When we buy a business, make sure that people that run it for us, own a stake in the business. When we are partnering with people, we're aligned, and we all have clear mandates with our people that we're bringing through the organization and promoting from within and we align all their compensation very similar. Alignment is the most important operating objective one can implement in any single business or any business in its entirety. And so we focus a lot on that, none more than the senior management of this organization. 90% of the wealth of all the senior people within the organization is invested in Brookfield. We own 20% approximately between us of the company. Our team continues to buy more shares when we can. And we're heavily aligned with the objectives of the organization to build wealth over the long term. And last, we continuously evolve with the world that's around us. Years ago, we created our listed affiliates to give us access to retail markets, as was mentioned earlier. Our retirement wealth business has been created over the last 4 years. I think it's going to be one of the best decisions we ever made in the fullness of time. And we've adapted our asset classes over time because -- what was the backbone of the economy 25 years ago is not the backbone in the economy today. It's still part of the economy, it's not the future of the world. As the world evolves, we have to evolve with it and we try to. And one of the reasons why we promote as young executives as fast as we can in the organization because they know what the future is going to be better than I do or somebody older than me. And that's really important for a growing organization. As the backbone expands, we have to adapt to it. And I said this earlier, I'm going to say it again in this slide because it's really important. We used to invest and we still invest in railways, ports, hydro, pipelines and all the things, which were the critical backbone before, and we still invest in them. But where the big, big money is going today is telecom towers, data centers, solar, batteries, nuclear, logistics, housing, hospitality, and all these businesses, which are the future. And every one of those that we're investing in today, many of them didn't exist 20 years ago. The ones that existed before are accentuated today because of trends that are going on in the world of baby boomers getting older and spending more money and discretionary spending happening. So we continue to evolve with that. Maybe most importantly, all of this is underpinned by a very, very conservative balance sheet, and it will always be that way. Because strong access to capital is the lifeblood of any company. Our $155 billion capital base, $60 billion of securities, which are liquid in the markets and could be sold. And just to show you the access to capital, we financed $115 billion last year in a tough year for financings. So we have one of the largest a raise of access to capital in the world. These core principles have been key to our success, and I think they've been key in past, I think they're probably -- as you get larger and you're in more countries and you have more things, you have to have more principles and they're probably more important in the future because before, when you get sit in the room with 10 people, that's different than when you have thousands. And you need to have principles that everyone operates off of, and I think they're more important in the future. But what that leads us to is I think we're in an excellent position to continue to grow earnings, continue to create value in the business. As I said earlier, we have one of the largest pools of capital. We truly are a partner of choice for global corporations today. And our businesses are centered around many of the tailwinds on deglobalization, decarbonization, digitalization. And that gives us significant secular trends behind us. In addition to that, I haven't been able to say this for 2 years. The tailwinds are turning in our favor. At that time, I probably didn't say it, but definitely headwinds were turning against us. But the tailwinds are turning in our favor because interest rates are coming down, liquidity is coming back into markets. Money -- transaction activity is starting again, which means that we're going to return capital to our limited partners, and they're going to have much, much more money to invest into new funds for us and for everybody that does what we do. Our business though has been tremendously resilient over that period. And again, what shows a great business is if during tough times, you can have resilience and during really good times, you grow, probably not as fast as some, but you grow at a very good pace. We had -- we continue to grow at a 17% return over that period. And despite all the chaos in the markets over the last 5 years, and there was a lot of chaos in the markets over the last 5 years, if you didn't notice. Our plan value reflecting back in '19 was $45. The plan value today is $84, but we spun out $10 a share. So it's actually $94. I think that's the best NAV growth in any period -- in any 5-year period that we've measured these numbers. The tailwinds from here are significant. As I mentioned, lower borrowing cost, lower cap rates, increased transaction activity leads to higher asset values. Returning capital to investors increased carry generation in this business, and Nick will talk about that in a minute. Our expectation is that our annual cash flow will grow by 20% annually on a per share basis over the next 5 years. That generates $47 billion of cash. Remember what I said earlier, the future of a great business is about how you invest your cash that's generated in the company. The future of this company and of the compounding returns will be how do we invest that $47 billion. Yes, it's about how we run the businesses that we have today, but this is a very meaningful component to it. That's $30 a share today. If meaningfully put to work, it will be much, much more in the future. That should enable us to deliver 16% annual returns. Nick will take you through this after. That means that our net asset value in the company grows from $84 to $176, which is a 16% compound return as we do the math. But it can actually be better for an investor. If we can close the gap of where NAV to stock price is from $50 circa today to that $176 or thereabouts, that's a 29% compound return to a stock investor. That means we didn't earn you 29% because we already $84. But to a stock investor, if we close that gap, it's a 29% return. So with that, I'd just say, look, we're -- Nick will come up and explain some of that. I think we're really well positioned to continue to compound the returns in the business. We're as excited today as we have been for years, both with the businesses we have, but with the market environment turning in the favor of the businesses we possess today. So with that, Nick will take you through the rest of the story.

Thanks, Bruce, and good afternoon, everyone. It's really great to see so many of you here in person. So consistent with prior years, I'll start my presentation by taking a look back at our financial performance over the last 12 months focusing on some of our key accomplishments. I'll then look back over the last 5 years and compare how we've performed against some of the metrics that we hold laid out for you in our plan at Investor Day 5 years ago. After that, I'll provide an update and review on our business, focusing on our private holdings, but noting in the subsequent discussions from real estate and the Brookfield Wealth Solutions team, they will be taking a much deeper look at their businesses and providing a more fulsome update. And then I will finish it off by bringing it all together and giving you an update on our 5-year plan. Now there is a few key messages or takeaways that we have for you in today's presentation. The first of those, and Bruce touched on this, that any volatile market backdrop and really an environment of muted transaction activity, we've continued to focus on operational excellence in driving the earnings growth per share in our business by using the organic levers we have available to us. And over the last 5 years, we've delivered 18% annualized growth in earnings, but we firmly believe the best is yet to come. With the foundations that we have in place today, and we'll talk through these in the presentation, we are set up to grow our earnings per share at 20% plus, that's 20% plus over the next 5 years taking DE or earnings at the end of the plan period to $9.77 per share. Now the main contributors to that growth, you heard from Brookfield Asset Management this morning, that's the 17%. But in addition to that, the contribution from carried interest, the growth in Brookfield Wealth Solutions and the added benefit in earnings growth per share and value creation for a net wise allocation of our free cash flow generation. If we're successful in achieving our plans over the next 5 years, we expect to generate free cash flow of $47 billion, which Bruce touched on, which is equivalent to $30 per share. Now if you think back over recent years, the allocation of that capital has been very important to achieving some of the strategic objectives in recent times. Think of the Oaktree acquisition, think of the scaling of our Wealth Solutions business and how we allocate that capital will be just as important to determining the future success of Brookfield. And all of this will continue to be underpinned by our strong balance sheet, high levels of liquidity and strong access to capital. The planned value, as we just discussed, will grow to $176 per share at the end of the plan period if we execute. And we are well positioned, arguably better positioned than we have ever been to continue to deliver 15%-plus total returns per share over the long term. Let's start with a review of the past and looking over the last 12 months, there are 4 key areas I'll just touch on briefly. First, financial performance. In the last 12 months, we met our plan in terms of growing DE per share. Within Brookfield Asset Management, annualized DE grew by 12%. And Brookfield Wealth Solutions, earnings grew by 58%. And when you put it all together, we increased total DE by 17% to $5.8 billion or $3.67 a share. Across asset classes and geographies, we maintained excellent access to capital, executing on $115 billion of highly efficient financing across the organization. And again, we have seen a more muted transaction activity market in the last period. But the nature of the assets that we own, the high-quality cash flows that they generate and the sectors that they are placed in, they're still very attractive to private buyers. And even in a more benign transaction activity market, we still executed on $30 billion of monetization, realizing carry of almost $0.5 billion. And then coming to capital allocation, using our free cash flow to drive that incremental earnings growth and valuation appreciation, we invested $2.6 billion of our free cash flow in the last 12 months into BAM strategies, into strategies that are poised to deliver very attractive returns over the medium term. We invested $2 billion into our Wealth Solutions business into Brookfield Wealth Solutions, driving in a meaningful way that 58% growth in their earnings over the last 12 months. Capital recycling. We sold $1 billion of BAM shares as part of the consideration for the AEL transaction, and we repurchased over $1 billion of BAM shares in the last 12 months. Again, as we see that disconnect between price and value, we continue to opportunistically allocate capital, weighing it up against the other alternatives, but allocating capital to repurchasing shares and growing that value per share for those remaining shareholders. On this table, you can see the 17% earnings growth that we've delivered in the last 12 months. A meaningful contributor coming from that DE before realizations, the stabilized part of our business, then being topped up by the game for the monetizations and recycling of the BAM shares, driving that 17% growth over the last 12 months. When you add in the contribution of our dividends, we have turned over $1.5 billion of capital to shareholders. Now again, we weigh this up against reinvesting back into the business because the reinvestment back into the business allows you to compound over the long term, but we weigh that up, and we do have a fair share of allocation to repurchasing shares when we see that disconnect in value and price. And we continue to buy back shares to date, and we plan to do so in the future. So rolling forward, our planned value today is $133 billion or $84 per share. You can see the 3 pillars of the valuation. We have our asset management business. Our asset management business is comprised of ownership of Brookfield Asset Management. It's our direct investments, our investments into the funds managed by Brookfield Asset Management into their strategies, and it's our share of the profits generated for clients in the asset management business by way of carried interest. All 3 of those inextricably linked to each other. If you think about the core competency at Brookfield and the key to our success, it's delivering attractive returns over a long period of time. And if we're successful in doing that, Brookfield Asset Management continues to scale direct investments deliver attractive returns, and we realize significant carry in the future. Our Wealth Solutions platform, and you'll hear more about this today, but we've been very deliberate and methodical in how we have grown this business. In a low business operating environment with low risk culture, we've created a vehicle that now has a great growth platform for organic growth levers, focused on leveraging the investment capabilities across Brookfield to drive attractive spreads with a singular focus on driving an ROE in the 15% to 20% range, value today, $21 billion. And our operating businesses for global champions across renewable power and transition, private equity infrastructure and real estate at $42 billion. But if we put this planned value in context to earnings today, it's a 23x multiple on our DE. But if we deliver that planned value growth in earnings, the planned growth in earnings of 20% plus, it's a 15x multiple on the average projected DE over the next 5 years. After delivering 22% growth in our planned value in 2022, we've consistently grown that value by 14% over the last 2 years, growing it to $84 from $74 last year. And again, it's underpinned by a conservative balance sheet, high levels of liquidity. This is really important because as you know, we look to drive returns to our operational capability and expertise. And the priority there is to give our operating teams and our investment teams the breathing space to execute their plans and not allowing us or anyone to be distracted by short-term volatility in the markets. And having this large-scale capital, significant liquidity has allowed us to focus on doing absolutely that over the last few years and will continue to be so in the future. Now if we take a look back 5 years ago, in the blue bars is the plan that we set out for you at Investor Day, the green dots representing our actual performance. And in every year subsequent to that, we've met -- largely met or exceeded those plans, delivering an 18% CAGR in DE before realizations, the stabilized part of our business, growing at 18% compound annual growth over the last 5 years with cumulative DE before realizations of $17 billion over that period. The planned value has grown at 16% CAGR, again, above our target returns of 15% plus over the long term. And when you factor in the average dividend yield along the way, it's a 17% total compound annual return over the last 5 years, which is ahead of our target. Bruce presented this in a slightly different way, but if you look at the share price returns over the last 30 years, it's an 18% total return to our shareholders and stating the obvious that obviously increases as we close that gap between price and value. So just finishing off of this section. If you think about the planned value today of $84, our share price today of roughly $50, that was the end of August, obviously, things have moved around, but roughly $50, it's been a 40% discount to planned value. If you think about that in terms of our earnings today, it's 14x. You think about it in terms of the earnings that we're projecting over the next 5 years, that's a 9x multiple on the average projected earnings over the next 5 years. You say that in a different way, it's offering investors a very large margin of safety or significant upside for investors at the current share price. Let's take a closer look at our business. Our perpetual capital base today has grown to $155 billion, generating over $5 billion of cash flow annually across our 3 pillars: Asset Management, Wealth Solutions and our operating businesses. Our base business, as I touched on, has demonstrated its resilience over the last 5 years, driving earnings growth of 18% per share with each of our businesses focusing on executing their plans, operational excellence. Within Asset Management, we continue to be positioned as one of the leading global alternative asset managers, perfectly positioned our global flows of capital, having grown earnings at 17%. Within Brookfield Wealth Solutions, we've established a top-tier annuity writer in the U.S. now with a clear path of growth from organic growth potential and producing a very, very high-quality, predictable earnings stream with a high growth profile. Delivering our release today of 20% and poised to increase annualized earnings to $2 billion in the short term. And our operating businesses within renewable power and transition perfectly positioned around decarbonization, infrastructure around digitalization and deglobalization, each growing their earnings and cash flows by 10%. Our real estate business, again, owning some of the highest quality real estate in the world continuing to drive revenue growth. And as Ben will touch on with supply-demand dynamics and tailwinds turning in our favor poised to be a key contributor. And our private equity business, uniquely focused on owning essential service, high cash flowing businesses has delivered 19% EBITDA growth. So the business is very well positioned for those organic levers to drive value. But as the economic headwinds turn into tailwinds, we believe there will be a catalyst for additional earnings growth as we look forward. So let's turn to our private holdings. We can separate these out into 2 distinct buckets. There's our public securities of 62 billion, they're each separately listed. There's a share price you can lift, but there's a ton of information out there to be able to value those companies each on their own Investor Days and well followed in the markets. Our private holdings at $90 billion represent 59% of our planned value, so $90 billion out of $133 million coming from our private holdings and that is where we will -- or I will focus my time today and the subsequent presentations will be focused as well. There are 5 parts to the earnings profile and the intrinsic value of our private holdings and we'll go through each of these in turn. But asset management, BAM is listed, not included in this. We have our direct investments in our carried interest, making up the balance of our asset management pillar. We have Brookfield Wealth Solutions, and we have our real estate business across core and transitional and development, a globally diversified portfolio of high-quality real estate. We've laid out for you the earnings profile of these individual pillars, and the valuation method that we use to get to our planned value. So starting with our direct investments. This is the capital that we have invested into strategies managed by BAM. Today, that totals $11 billion. On the table, you can see how that's broken down. It's diversified across strategies, but if you look at the target returns, it's 15% to 20% target gross returns. It's an excellent place for us to be allocating capital to compound value over the medium and long term. And all of these strategies tracking ahead or in line with their target returns. If you look at just the first 2 real estate strategies, we've had all of our capital return to date, and we still have capital working for us in these funds generating returns. Similarly, across the other real estate funds, Oaktree and private equity, we firmly believe this is an excellent use of our capital. We often get asked, what is the stabilized amount of capital that you expect to have work here over the medium to long term? And if you think about -- the short answer is $8 billion. But if you think about what's happened in the last couple of years, you've heard it in the earlier presentations, we have seen value investment opportunities. We've still been deploying capital over the last few years, drawing down commitments in the funds. But yet the monetization activity has slowed down. We've executed our plans. We're creating the value, but we are waiting for the right market environment to monetize. So we've probably become slightly over-indexed here. But as the transaction market levels out and normalizes over the next few years, we should be receiving back more capital that we're investing back into these strategies. So over the medium term, we would expect this number to level out around $8 billion. That doesn't mean we're allocating any less capital to BAM strategies. It just means the returns will exceed the deployment. Now focusing on carried interest. Maybe taking a step back, and many of you will be familiar, but when we spun out Brookfield Asset Management, we put in place an agreement for carried interest. All carried interest from funds raised before the spinout accrues to Brookfield Corporation 100% and Brookfield Corporation bears the associated costs of that carried interest. All carried interest on funds then are raised after the date of the spin out. 33% of the gross carry comes to the corporation, the rest goes to Brookfield Asset Management and Brookfield Asset Management deals with the associated costs. If you look at our carry-eligible capital, it has grown commensurate with the growth in Brookfield Asset Management. This is the capital against which we are entitled to earn carried interest and it scaled to $232 billion today. That's the capital at work against which we earn a share of the profits. Now if you look back at what we set out for you 5 years ago, and you think about what carry is, it is the capital at work. Carry accrues daily for you. It's just the value creation in the business that we're executing every day. The realization of that carry is less predictable. We talked about last year with carried interest. It's a question of when, not if. And you can see that in 2021 and '22, in aggregate, we were largely meeting or exceeding the plan. The slowdown in transaction activity has slowed down that realization in the last 2 years. But if you think about it's the when, not the if. And all of our funds are tracking to meet or exceed their target returns. And as monetization activity picks up again in the next few years, we expect to catch that up and realize significant carried interest. Over the next 10 years, we expect to realize $25 billion of net carried interest direct to BN. There's $25 billion of cash free and clear for Brookfield Corporation to invest back into the business or return to shareholders and $21 billion of that $25 million is from funds that are already raised. We do not have to raise a single dollar more for that capital to be returned to us. We have to execute our plans. We have to monetize at the right time and that carried interest will be returned to Brookfield Corporation. If we bring that into a shorter time line over the next 1 to 3 years, it's $5 billion, and the funds to watch out for in that period, there are 4 main contributors in the plan. There's the second real estate fund, a second infrastructure fund, our fifth private equity fund and 2 vintages of Oaktree that we expect to be material contributors to carried interest over the next few years. And what's unique we think about our carried interest is the nature of the underlying investments that contribute to that realization is diversified across asset class, risk profile and strategy. And we believe that over time, this reduces volatility and will lead to a more stable amount over a long period of time. So the numbers I laid out for you today are really based on the carry that we already have working for us in the ground. But if we roll forward the plan 5 years, we see significant more potential for cloud interest over the medium to long term. If you roll forward to the end of the 5 years and the end of the plan period, carry eligible capital scales to $531 billion. Our annual generated carry scales to $3 billion net or $7 billion gross and realization how much we think we'll be realizing on an annual basis at that point in time close to $3 billion net to the corporation at the end of the plan period. Now we value our carried interest at $33 billion today. It's broken up into 2 line items here on the table. It's our target number. The target is what's the capital at work times the target returns kind of gives you that target carried interest, the share of profits that are being generated on an annual basis. At $2.6 billion, 10x multiple, a $26 billion valuation. And then you add in the accumulated unrealized carried interest, that value that's in there today that would be realized if we were to monetize everything another $7 billion taking the value to $33 billion. But the key message we have as it relates to carried interest is this is a significant sum of cash that is going to be returned to Brookfield Corporation over the plan period and as we monetize investment that starts to come in, the allocation of this capital back into the business is going to be a significant contributor to additional earnings growth and value creation through capital allocation. And the excess cash can be returned to shareholders, which I'll touch on in a second. So we put all the component parts together for our asset management business. You can see the distributable earnings from BAM. That's reflective of the plan that they laid out for you this morning. Our direct investments, the growth there. You see the growth less the dispositions and the contribution from realized carried interest; when you put that asset management segment together, it's a 21% CAGR over the next 5 years, taking earnings from just a touch under $3 billion today to $7.7 billion 5 years from now. This is a significant contributor to the growth of Brookfield Corporation over the plan period and beyond. Now moving on to Brookfield Wealth Solutions. Our Wealth Solutions business in just a few years has scaled now to $110 billion of insurance assets with a plan to generate $2 billion of annualized earnings in the short term. Again, we've been -- the team at Brookfield Wealth Solutions has been very methodical in how we have built the business, focusing on low-risk predictable liabilities, which I'll touch on and focusing in on delivering a 20% in the early days of ROE, that ROE being a key driver of how we think about growing that business. And with the growth trajectory we see, we're well set up to triple the earnings from that business over the next 5 years. And like the asset management business, we believe this business will continue to deliver a very high-quality, high-growth cash flow stream to the corporation and will contribute significantly to the growth in our value over the long term. Our guiding principles when we look to build any business, they're simple. Let's keep it simple and focus on compounding capital. And what has this meant as we set out to build a Brookfield Wealth Solutions. It's meant one, on the liabilities, we focused on acquiring predictable, low-risk long-duration liabilities. Think fixed indexed annuities, pension risk transfer, predictable liabilities. And then can we earn an attractive spread by leveraging the Brookfield ecosystem to originate attractive risk-adjusted investment opportunities, doing all of that while maintaining a low overall business risk profile, and the team will touch more on this in their panel. From $2 billion in 2020, [indiscernible] was our small Canadian pension risk transfer business, we scaled to $110 billion today but the plan is to get to $300 billion by leveraging that organic growth profile that we've built in the U.S. as a top-tier writer of annuities and adding to that international expansion, looking at the U.K. market, Europe and Asia. Now as it relates to Brookfield Wealth Solutions, the question often gets asked, what can Brookfield bring that's different and unique to this space? And we believe that our secret sauce is our investment franchise. We think of it as a sourcing advantage. We have a long-dated track record of investing for value across real asset segments; infrastructure, renewable, real estate, and these are assets and investments to support stable recurring investment income, which pair up perfectly to long-duration insurance liabilities. We generate over $50 billion of proprietary credit deal flow annually. What does this mean? It means it allows us to be a price maker across cycles and through cycles allows us to remain focused on driving that 2% spread and maintaining an attractive ROE as we grow. We laid out our growth plans for you a few years ago, and we had a pretty clear line of sight to how we got there, but I'd say it's even clearer today. Today, we have a top-tier annuity engine in the U.S. that has the capacity to write over $20 billion of long-duration annuities a year. That is a significant embedded organic growth advantage that we have. We can add on to that with other growth avenues, but this is where the business and the platform is set to go. And all of this is underpinned by our low risk profile, a high rated platform with lots of liquidity and a highly rated investment portfolio. If we look out over the plan period, we have $1.4 billion of annualized earnings today. By repositioning the investment portfolio at AEL, no growth just repositioning the investment portfolio at AEL, that $1.4 billion will grow to $2 billion in the medium -- in the short to medium term. And over the planned period, we scaled to $4.8 billion by the end of the fifth year. And we believe that this earnings profile supports a very compelling value proposition, and we believe the business should attract a premium multiple value in the market. With earnings today of $1.4 billion, you think of the quality of that earnings and the growth profile that it has attached to it, we apply a 15x multiple for $21 billion valuation equating to about $13 a share for BN, growing if we execute the plan to $36 a share for the corporation at the end of the plan period. And again, a lot of that growth is already embedded in the business. So now we'll turn to Real Estate briefly again. We'll have the team, Ben and Kevin up to give you a more detailed overview and update on the markets in our business. But just a refresher, within the real estate business, we own on balance sheet a diversified portfolio of world-class real estate. And as you've heard consistently today, we see many tailwinds for the earnings and valuations of our real estate business. With all the noise that's going on in the market, we just continue to execute. We own the highest quality assets and we've benefited from the flight to quality. Tenant demand is strong, and as supply has dried up, that demand has only got stronger. And we see that NOI growth that's been there for the last few years continuing through the plan period. Liquidity is returning to the capital markets. The depth of the capital markets in the last 12 months has got so much better. But since the turn of the year, it's got just better than that again. The depth, the amount of capital that turns up for refinancing is deeper and the spreads are tightening, and it's very compelling for our franchise and the interest rates are declining. As interest rates come down, that helps cash flow, but it also helps buyers and valuations. Active capital markets is a key to that, and it should be a catalyst for improved transaction activity as we move forward. Our portfolio today is across 3 buckets. The first being $15 billion in core, the best assets you will find anywhere in the world. $7 billion, sorry, in our transitional and development portfolio. We think of this as our by fixed sale portfolio. We're buying assets with a short-term business plan, we want to execute great value and monetize when the market environment permits. And lastly, our residential portfolio. This is a business we've owned for a long term. It's been a great contributor to earnings growth and value. I'm going to focus my comments on the first 2. So the first one is our core portfolio. This is our own forever portfolio, we will own all or every piece of these assets for a very long time. It's 35 trophy mixed-use precincts split between 16 premier office and mixed-use assets and 19 irreplaceable retail centers. As we said, this business really is the best of the best in every market in which they're present. They've driven NOI growth over the last few years, they maintain very high occupancy backed by low leverage and an attractive long-duration lease life. Our T&D portfolio, which as we've talked about in the past, and we'll talk about it again, we plan to sell down over time, but that's purely because that's always the business plan with these assets. This is a globally diversified portfolio of very good quality assets. They're just slightly different in nature to core, but they're high-quality assets that we execute our business plans and drive that value creation, we will look to monetize, surface the capital and then we can recycle it elsewhere in Brookfield. But again, we're repositioning tenants here all the time, but we're still maintaining a 91% occupancy. A low leverage to back the business plan that we're looking to implement and a lease length, which is actually reflective of the fact that we are looking to turn over tenancies and reposition assets. But this portfolio has performed well. So what are the 3 main objectives for this business as we move forward? One, as I just touched on, monetize those T&D assets at the opportune time. Again, the depth of liquidity and capital that we have affords us patience but at the right time, we will monetize, we will surface the capital, and we can allocate it elsewhere. Our core assets, we plan to own all or every piece of these for a very long time. We can own them on our own balance sheet, but given the long duration inflation protecting nature of this revenue stream, they also fit very well with insurance liabilities. So we may migrate some of these assets over into assurance accounts over time or we may sell interest in them to third-party investors like we just did with ICD Brookfield Place Dubai. And as we monetize as the asset base comes down over time, we will just accordingly rightsize the amount of debt that we have sitting at the real estate corporate level. So turning this into numbers for you, which is probably the slide you most wanted to see. Today, we have $25 billion of equity in the real estate business. As we execute our plan over the 5-year the planned period amount at the end is $15 billion. And you can see the distributable earnings contribution reduces commensurately with the reduction in the equity from those dispositions from $735 million down to $525 million at the end of the plan period. Touching briefly on capital allocation and our singular focus on capital allocation is to maximize the net asset value of the company. You've seen this number a few times now, but over the next 5 years, it's a staggering amount of cash that we expect to receive into the business over the next 5 years, $47 billion and is diversified across the business across those key contributors that I touched on at the start of the presentation. I'd say the only reinvestment that's assumed in our plans is the retention of the free cash flow generated in our -- in Brookfield Wealth Solutions, the reinvestment of that cash. As long as Brookfield Wealth Solutions is able to source investment opportunities, maintain 2% spread and drive a 15% to 20% ROE, we will continue to reinvest back into that business. But even after that assumption, there's still almost $25 billion of free cash flow that will be available to the corporation over the next 5 years. Now how do we think about investing that? Obviously, the wise investment of this cash is going to be a key determinant of our success and it should add meaningfully to earnings per share and value per share over the long term. First, we look to invest in strategic transactions. Again, thinking in the last few years, we made the acquisition of Oaktree. We scaled our Solutions business. We privatized our real estate business. We used this cash to reinvest back into the business into transactions that bring more to the franchise than just the returns. They bring very attractive returns but the opportunity to invest more capital into them over time, and they bring a lot of synergies to the broader franchise. We weigh that up with also opportunistically repurchasing shares, so the balance of investing back into the business with returning capital to shareholders. And when we see that disconnect between value and price consistent with the past, we'll continue to opportunistically return capital to shareholders through this means. And importantly, we always look to retain ample liquidity so that we're able to respond quickly to opportunity, but also so we can protect against downside risk. As we've said before, if you want to compound your capital over a very long period of time, what you don't want to do is find yourself in a position where you have to do something value destructive at the worst point in the cycle. So maintaining ample liquidity and access to capital is a key part in foundation to our focus on driving and compounding value over the very long term. So bringing it all together and just touching again on some of the key points we made throughout the presentation. If you think about our base business, the 3 pillars that we have today, that core DE that we generate before realizations, that business is set up to deliver 17% annualized growth in DE per share over the next 5 years. When you layer in the benefits of carried interest and the contribution of capital allocation, that grows to 25% compound annual growth rate over the next 5 years. Here's the numbers on the page, but you can see this is just bringing together all the component parts that I presented throughout the day. Taking our DE before realizations and capital allocation to just over $10 billion 5 years from now at $6.33 a share. When we layer in the benefits of carried interest, it takes that number up another $3 billion or more to $13.5 billion of annualized earnings at the end of the plan period that takes you from a 17% to 21% CAGR over the 5 years. And when you add on top of that, the benefit of wisely taking your excess cash flow and reinvesting it back into the business to drive earnings growth, it takes the CAGR up to 25% over the plan period. On the balance sheet, the funding model, nothing will change. We will continue to operate with conservative capitalization. We will continue to finance our businesses nonrecourse, no cross collateralization and financing them with long-term financing that aligns with the nature of the investments that we own and maintaining that low risk culture to be able to focus on operating and executing our plans. So just the key takeaways to wrap up here before I hand over. DE before realizations and capital allocation are poised to grow at 17% CAGR over the next 5 years. Again, that's the strong return from just our base core business. When you layer in the benefits of carried interest, which is going to be very meaningful and turns to real hard cash over the next 5, 10, 15 years and the benefits of capital allocation, it takes our projected compound annual growth rate up to 25% ending at $9.77 per share of DE at the end of the plan period. And our planned value grows from $84 today to $176 five years from now. The tailwinds for the business are strong. We've heard about them consistently throughout the day, but it should be a really strong catalyst for enhanced earnings growth over the plan period. The corporation continues to drive additional growth through driving synergies in the business and effectively allocating our excess capital. And if we do that, the earnings growth profile continues to show 25% growth per share over the next 5 years. And I'd say we're better positioned today than we have ever been to deliver total returns per share over the long term at 15% plus. And if I have one key message for you on Brookfield Corporation today, it would be that the best is most definitely yet to come. Thank you. And with that, I'll hand over to Ben to take you through our real estate business.

Great. Thank you, Nick. And where Nick ended with the best is yet to come is probably the most appropriate place to start when we talk about our real estate business and what we're seeing in real estate markets today. So I'm going to give a bit of an update on what we're seeing across the market environment and what we're seeing across our business specifically. I'll dive a little deeper into a couple of the main segments of our real estate business, specifically our office business and then Kevin will come up and talk a bit about our retail business. Nick basically just gave half of my presentation, and he did a pretty good job. So some of this will be repetitive, but at the risk of repeating myself, I'll drive some of the key themes home for you today. So the place to start, right? One key point that I would make is during the time of extreme volatility in real estate markets, our real estate business has proven resilient has performed really well. Three key points. A lot of these themes you've heard today. The backdrop of fundamentals is really healthy. You've heard supply is decreasing, and it's decreasing across almost all markets and all sectors. And demand is still growing generally in a positive direction across most markets. Capital flows are returning to commercial real estate, and that's driving the ability to see more transaction volume. The fact is this the bottom is behind us. Values have troughed, rates have peaked, capital markets are opening and that's going to drive a pretty robust recovery across real estate markets generally. And that means our real estate business is poised to continue to deliver strong cash flow and capital appreciation for BN. Now I do want to just frame up when we talk about our real estate business, this dynamic. So you understand why there's another guy talking to you about real estate, if you were with us this morning. But it's really our real estate strategy and how we invest and access real estate is really across our 2 pools of capital. If you were with us this morning, you would have heard the update on our real estate business and our private fund investments. This is our investing strategy across multiple funds, mainly open- and closed-end strategies where we have a buy, fix and sell strategy with the intention of returning that capital to our investors. Our balance sheet investments that directly held real estate assets within BN is what I'll spend my time talking about today. And Nick profiled it pretty well, but these are a collection of the best real estate assets around the globe. Long-duration, durable, stabilized cash flows, which allow us to compound returns over a very long period of time, underpinned by perpetual capital. And there's 2 segments of our real estate business, core and transitional development that you got a preview of in the previous section that I'll go through in a bit more detail. So starting with our transitional development portfolio within BN's directly held real estate. This is a highly diversified collection of assets, 174 different properties around global markets across multiple sectors. And this is really our roll your sleeves up and add value at the real estate level business plan. This is where we intend to develop, redevelop, reposition these assets through a value creation business plan. And then as markets allow, monetize these assets and return that capital back to the end. Our core portfolio, which is about twice the size in terms of invested capital, $15 billion is invested in 35 of the best real estate assets around the globe. This high concentration in a relatively small number of assets is by design. This curation gives us a great foundation to own these assets over long periods of time and have these assets work their way through cycles and continue to find ways to grow cash flow, grow NOI and give us a really stable base of growth in our real estate business. Now specifically, what makes up these 35 assets? It's actually a pretty easy story to wrap your head around. It's 10 premier office campuses around the globe, primarily concentrated in New York, Toronto and London. But maybe the easiest way to think about our office exposure is roughly half of our equity is invested in 2 of the market-leading complexes in the world's largest real estate market. Brookfield Place here today in New York, where you sit and our sister campus at Manhattan West on the west side of Midtown, Manhattan. In addition to this, we have a half a dozen mixed-use components to these campuses, which include luxury residential, luxury hotel and luxury urban retail offerings. And these are critical mixed-use components that create the differentiation for these campuses for our occupants who want a live, work, play environment. And then to round out the 35 assets within BN's core portfolio is 19 irreplaceable retail centers. These are assets like Ala Moana in Honolulu, 730 Fifth Avenue in New York, Fashion Show and the Grand Canal Shoppes in Las Vegas. These are fortress retail centers, truly irreplaceable assets. So stepping back a bit and talking about what we're seeing in markets today. You've heard many of these trends, and they ring true across our real estate business as well. But like I said, the best is yet to come. Property markets have turned a corner. We've seen values reset off of their recent highs, but we are clearly past the bottom. And to that point, transaction volume is picking up. We're seeing a tremendous amount, really a record amount of dry powder, nearly $0.5 trillion waiting on the sidelines to invest in real estate markets. And we anticipate that to be the engine of a strong recovery in transaction markets over the next couple of years. Now this is not surprising that it's happening at a time where we're getting a ton of support in the rate environment. So liquidity generally is back in real estate markets, and that's supporting values. We have the benefit of base rates declining, spreads are compressing at the same time. That is creating a compression in the overall cost of capital within real estate markets today. And we're seeing -- you've heard this throughout the day, whether it was in our credit panel or generally in our commentary across markets, is debt is coming back to real estate markets. We've seen a muted transaction volume over the past couple of years, and that means lenders and lenders really of all type. Many of them are underallocated, they were coming back to real estate, looking for the best assets and the best sponsors to get that exposure, and that's really benefiting our business today. Now this increased liquidity is really the engine for future transaction volume. And future transaction volume is what we really rely on to be able to meet our plan. Nick outlined this a little bit earlier, but as I said at the start, we've been busy executing on our value creation plan within our transition in development portfolio. We anticipate being in an environment where we will be able to monetize the bulk of that $7 billion we have invested in our balance sheet through the sale of those assets and repatriating that capital back to the end. So maybe just to pull that together in terms of what we're seeing across markets today, a tremendous amount of capital sitting on the sidelines waiting to come back into markets. a really healthy backdrop of supply and demand really across most geographies and most sectors and is intensifying flight to quality, which is really driving outperformance for the owners of the best assets very much like our portfolio. So switching gears to office. I want to tell you a little bit about what we're truly seeing in the office market today and how that's impacting our business. At a time where we've actually seen vacancy, aggregate vacancy grow in the markets, we have surprisingly seen net demand and aggregate demand grow. And this -- just traditionally, when I say this confuses people because why are we adding vacancy to a market when demand is growing. The difference is we measure demand by requirements in the market. We've been in an expansionary cycle where business growth has been happening and head count growth has been taking place, all the while most of the businesses who are our major occupiers around the world have not been adding additional square footage in terms of their office portfolio. We are now starting to see that capitulation set in and that urgency come about as we see a pushback to in-office work from most companies, they really need to solve for this growth in head count and this growth in demand that occurred over the past couple of years. We have a couple of anecdotes that we are working on now that are large requirements in our business that our teams have been hard working on the parts of 9 to 12 in many cases, 18 months that are now at the table coming to transition from a requirement in the market, this demand generation into signed leases. We have one specifically, I won't name names, but it will be in this complex, and it will likely force us to move to another building and that's a good problem to have. Typically, it's not really fun to move your office, but when you're an office landlord and someone needs your space in an expansionary mode, we like those sorts of things. So we're on the front end of seeing that demand generation translate into leasing activity and that demand part of the market start to recover. We talked a lot about supply generally in real estate markets, but specifically to office, it's in a really healthy place. This should not be a big surprise. Future supply in terms of projects delivering and under construction over the next couple of years is at record lows. You extrapolate that out a little bit further and pretty much everything in the pipeline that could have been or was planned to be built, has either been delayed or mothballed entirely. No surprise there is a complete lack of construction financing available for office projects today, add on the complexity of economic feasibility in many of these projects. The important takeaway here though is that given the long and arduous process, it takes to actually deliver new real estate, this is a process of entitlement. Design and construction takes to upwards of 6 years to deliver a new project. When supply starts to contract and come out of the market, it does take a very long time for that supply pipeline to get built back up. And so we could see a scenario where as demand starts to cover and come back to the office market, it will be at a time when supply is muted, and it's likely muted for an extended period of time. And that could actually translate to a pretty robust recovery across office markets over the next couple of years. With supply and demand in context, this is what you really need to know, and this is what's really happening in office today. And this dynamic of how office has changed is really illustrated by these 2 stats. We've talked the past couple of years of our observation in our business and in the greater market of this flight to quality. And this dynamic of the haves and the have nots and the difference in performance, and it continues to intensify, and we think this trend has some real permanence to it. The 2 stats that tell you what's happening in office are as follows: 90% of the vacancy in the office markets today is concentrated in 1/3 of the assets. Okay? So that means the bottom 1/3 of the market, where we've seen a period of vacancy increase has really been concentrated in one subset of the market. Now that does mean that these assets have had meaningful downward pressure on effective rents, meaningful devaluation in terms of values and a real lack of liquidity. But to contrast that, there's 40% of the market that has performed actually extremely well, and this is where the halves come in, virtually fully leased. And this is what is driving outperformance for office landlords of the best assets. And we're seeing this on a global basis. This is not just specific to the U.S. or North America. But the elasticity in rents in terms of what tenants are willing to pay now to be in the best assets is really wider and greater than we have seen in past cycles. I'll give you one more anecdote and since we're in New York, I'll keep it New York topical. We have an asset in Midtown Manhattan. 3 years ago, we signed a lease for a tenant for about 100,000 feet. We set a high watermark on this asset. This asset for all intents and purposes, you'd consider a top 10 asset in the market. We had one tenant express interest in relocating to another asset, which opened up an expansion opportunity for this tenant where we signed this lease 3 years ago. They took the space, which effectively meant they doubled their total footprint. So effectively 4 years and now doubled their footprint, and they've now reset a high watermark again in the same building 3 years later at a rent 30% higher than the lease rate they signed 3 years ago and 60% higher than the lease rate of the expiring tenant on that space. We're seeing this globally, and we're seeing this across our business. And so better than me to give you a bunch of stats, we pulled together just a quick video to show you a couple of examples of where this is happening across our office portfolio. [Presentation]

So to pull this together, I just wanted to give one other case study about all these factors are coming into play in office at a time when a lot of the headlines would have you believe, no one is returning to the office and office performance is meaningfully struggling. There are plenty of green shoots on what is working. And this case study, this project that we delivered at ICD Brookfield Place in Dubai, is the exact example of this dynamic. This is a roughly 1 million square foot tower that we've delivered in Dubai, a market-leading asset when we delivered it. Through lease-up of this asset over the past 3.5 years, we've seen rents tick up by about 3x. At the same time, what's really interesting here is we've leased this building primarily to multinational tenants that are occupants of at least one and in many cases, multiple buildings of ours around the world. And so it speaks to our global footprint and our global scale that gives us a competitive advantage in the office landscape today. This is an asset that we've recapitalized the 50% interest in. We've returned about 2x our invested equity, and we still retain a 25% ownership interest in this asset, which will allow us to hold this for the long term. All of these dynamics are clearly benefiting owners of the best assets. We're highly indexed and correlated to that within our directly held office portfolio within BN. Our office business this year, year-to-date, has had a really strong first half of the year. In a couple of weeks, that 2.3 million will look like 2.5 million square feet of office leases signed, we're signing leases at an average of a 26% premium of those rents expiring. We've got a stabilized market-leading core occupancy of 95% across our core office business, and we've accessed about $3 billion in aggregate year-to-date in financing activity. And we continue to make a tremendous amount of progress on our net 0 goals across our office business. So with that, I will bring up Kevin to give a similar profile of our retail real estate business. Thank you.

Thanks, Ben, and good afternoon, everyone. I'm going to discuss our retail business in a little bit more depth. Brookfield Corporation has invested in a portfolio of retail assets that are extremely high quality and managed by a best-in-class operating company that looks to create value through active asset management. As you can see, our core retail assets are concentrated in the largest metropolitan areas in the United States, providing an unmatched set of demographics and geographic diversity. Our core portfolio is 97% leased, has a weighted average lease term of over 9 years and generates almost $1,200 per square foot in sales. But another key metric to look at when measuring the strength of our portfolio is total sales. And there are 2 reasons why you want to look at total sales. The first is looking at total sales measures the entirety of any particular asset or groups of assets. And the second is rents are geared off of sales. Tenants usually pay about 14% of the total sales of their store. Now our core portfolio generated $9 billion in sales last year, and that's over $1 billion more than just 2 years ago. meaning, as leases roll, there is an embedded $140 million or more of rents that we can capture in our core portfolio. On the national level, the retail market continues to remain resilient with over 3% year-to-date growth in retail sales and 40% over 2019. But the true salient statistic to look at is net new store openings, which are projected to be almost 700 net new stores hitting a 3-year trend of positive net store growth. On a macro level, this means retailers are increasing their store footprints and using these stores as an avenue for growth. On top of that, 80% of all retail sales, whether online or in person are fulfilled through the store. This puts a direct spotlight on what having a store means to the retailer. And that value is undeniable. These numbers jump off the page. It is extremely expensive for retailers to acquire a customer online -- from online advertising costs to shipping costs to the cost of returns, these costs have a material impact on a retailer's gross margins. The truth is that there is limited EBITDA upside due to these growing digital costs for retailers. In contrast, every time a retailer opens up a store, it sees a 2.5x market growth in their sales. They can then leverage that store to fulfill online orders through buy online, pick up in store and return to store dramatically increasing their digital margins. On top of that, millions of people walk through our centers every day, providing a customer acquisition cost equal to the cost of their rent, which, as I mentioned before, is only 14% of their sales. And while the numbers tell the story fairly clearly, I hear this from retail CEOs every time we meet with them to discuss their growth strategies. I met with one retail CEO recently of a digitally native direct-to-consumer brand and he said to me he had to be convinced to open up his first store. He did not want to do it. But after opening up his first store, it was eye opening. The brand awareness that he got from having customers come into the store and the gross margin and EBITDA margins that he was getting on those direct sales were tremendous. They now have 20 stores and the primary focus of their growth is through new store openings. But we hear this from retailers every day. Store growth is the strongest avenue they have for EBITDA growth. And our core retail assets are at the top of all of their lists for new spaces. And this demand is clear in our retail valuations. Our core assets represent over 70% of our retail value. And the lenders see the compelling value of our retail assets as well. The retail capital markets are open, especially for the best-in-class assets. Over the last 12 months, we've refinanced $1.5 billion of our core retail portfolio debt. Over the last 2 years, we've refinanced $3.1 billion of our retail portfolio debt. And by the end of this year, we anticipate refinancing another $1.5 billion of our core retail portfolio loans. So while our core portfolio assets sit in key demographic markets are extremely well leased and generate a tremendous amount of sales year-over-year, we are still looking to create value through our best-in-class operating platform. And we do that through 2 principal ways. The first is tenant curation and the second is through reclaiming obsolete department store boxes and redeveloping them. So starting with tenant curation. Tenant curation is a key driver in repeat customers to our centers, which ultimately drive sales at our tenants and pushes our rents. Having a best-in-class management team in the market every day looking for new and relevant concepts is a competitive advantage of our business. Their ability to curate and tailor assets to the local market demand drives customers back again and again. But taking a step back, about 10 years ago, we took a strategic review of our core retail portfolio and decided that we needed to cycle down our exposure to apparel and footwear tenants and increase our entertainment and restaurant options for our centers. And now almost 10 years later, we've increased that food and beverage and entertainment options by almost 10%, driving repeat customers back to our tenants, which benefits all of our tenants. I want to give you a few examples of how the quality of our portfolio and team is able to attract best-in-class tenants. So the first is Sony. We worked with Sony on developing a unique first-of-its-kind experiential tenant, leveraging their movie-related intellectual property. The Sony Wonderverse, as this has become called, is a first-of-its-kind experience that drives families and customers back again and again. The second is Google. Google has realized that it needs to have retail stores as one of its components as it tries to gain market share for its products. And the best thing that a retail store can do is allow customers to interact with and use its products. We were able to secure first-to-market Google store at one of our assets, and now we're working with them to roll out a portfolio of 5 to 10 more. And finally, [ infill luxury ] is a growing segment of our business, as luxury retailers move out of traditional department stores in secondary markets and into their own spaces. Our team is constantly meeting with these luxury brands to discuss their growth strategies and present our assets as the best options in the relevant markets. And we've been extremely successful in assets such as shops at La Cantera in San Antonio, which has become the emerging luxury shopping destination in San Antonio and Plaza Frontenac, which is the luxury shopping destination in St. Louis and Kenwood Town Center at Cincinnati, which did not have luxury at its center, but now has an emerging luxury tenant base for customers to come and shop at. But it's not just about curating our existing spaces. Over the last number of years, we've had the opportunity to reclaim and redevelop obsolete department store boxes and transform them into a variety of uses tailored to the local market demands. I'm going to take you through a couple of examples of how we are creating value through these redevelopments. But before I do that, I just want to delve into the history of these department store boxes and why you're able to see such tremendous gains in our sales and our NOIs. So in the 1970s and '80s, when these malls were built, the real estate developer of those malls essentially gave these department store boxes to the department stores at little to no rent over very long periods of time. And now that some of these department stores are vacant in some of these boxes, we have the opportunity to invest capital and reimagine them and increase and reset our rents to market. So to go through a couple of examples, starting with Oxmoor Center in Louisville, Kentucky. We were able to reclaim an old Sears box in a difficult-to-lease wing of the mall and transform it into an entertainment zone. We brought in Topgolf and Puttshack, retailers such as Urban Outfitters and a number of restaurant concepts. This redevelopment helped propel the asset's growth. We earned a 10% yield on cost. Our sales at the asset grew by 116%. And our NOI is up 56% and growing. At Oakbrook Center in Illinois, we were able to reclaim an old Lord & Taylor box and transform it into retail, entertainment and restaurant uses, such as Sweetgreen's, Puttshack and Abercrombie & Fitch. This redevelopment generated a 10% yield on cost and helped change the profile of this area of the mall that helped drive our sales per square foot up by 89% and our NOI up by 28%. Puttshack, which is a miniature golf concept with a nice restaurant and bar generates $18 million in revenue alone. This showcases the demand that we're seeing from our customers for these types of entertainment and restaurant concepts. And finally, at Stonestown Galleria in San Francisco, we were able to completely eliminate our reliance on traditional department store boxes by redeveloping a Macy's box into a Whole Foods, a movie theater, a health care facility and a sporting goods store, and transform an old Nordstrom's box into a Target and multiple entertainment concepts. After this redevelopment was completed, our NOI has gone up by 75%, our sales per square foot has gone up by about 115%, and our total sales of this asset have gone up by almost 150%. These are just a few examples of how our operating team is looking to drive value every day in our assets. Now I spent a lot of this time focused on our core portfolio, but our operating team is looking at these opportunities that exist in our transitional and development assets as well and executing them every day while we look for opportunities to find liquidity for those assets. So in conclusion, our core portfolio of assets, including both our retail and our office assets, are truly best-in-class assets that maintain extremely high occupancies and continue to outperform with same-store NOI growth year-over-year of 3%. With decreasing interest rates and spread compressions, we anticipate positive and immediate impact to our FFO. And with liquidity returning to the market, we believe that there will be opportunity to recycle capital out of our transition and development assets. Thank you. With that, I'll turn it over to Sachin to discuss our Wealth Solutions business.

Okay. We're getting there. Hang in there. We are going to bring up a number of my colleagues over the next little bit. The format of our group's presentation will be a short video, and then we're going to have the CEO of American National come up and just talk about our partnership with the company since our acquisition in 2022. And then we're going to have a panel where you can meet some of my partners in the business who help run it every day and just get a flavor for what we've been working on over the last several years and the depth of talent we have and the expertise we bring from an insurance perspective. Before we get to all that, a short video. [Presentation]

Okay. Before I bring up my colleagues and Tim, just a few comments on the business. That video, apart from being pretty well done, really is the underpinning of what got us going into this business. It's this very large macro theme of an aging population in the western world. In the U.S., it's particularly acute. And it really is the driver for demand for annuities, demand for pension solutions, demand for retirement income and really an income for life type product, which is going to be much of the focus of what we talk about. Maybe more important than the macro underpinning is that we have been able to build a platform that can service this demand and scale and build a business over the next several decades in what is a really, really large opportunity set. And that sets our business up really well for a multiyear organic growth opportunity where we can sell billions of dollars of annuities into the market, provide retirement income solutions for Americans, and as we expand into Europe, the U.K. and Japan, really the western world where the aging population lacks the ability to have certainty of income in those retirement years. What differentiates us is Brookfield Asset Management's investment capabilities. If you were here this morning for the presentation, 25 years of work to build out world-class platforms focused on long-duration investing and real asset investing matches up perfectly with long-duration liabilities. And ultimately, for us, that's a key driver of selling best-in-class products. And lastly, in addition to building a great operating platform and a focus on building a scalable business, our core focus continues to be compounding capital every day at 15% to 20% returns for our shareholders. So that provides our guiding light and ultimately informs the decisions that we make every day. With that, I'm going to hand it off to Tim Walsh, who is the CEO of American National.

Thank you, Sachin. Good afternoon, everybody. It's good to be here. I've spent just about my entire career in the insurance business, almost 40 years if you include the time I was at KPMG. The last 30 with the American National Insurance Company. In July of 2022, I got the honor to be the President and CEO of the organization. And prior to that, I spent some time as the Chief Financial Officer, the Chief Operating Officer, actively involved in our property and casualty, life, annuity and now PRT businesses, and a little bit in the disability and health businesses. Sachin asked I tell you a little bit about myself. The takeaway here is I love the business. I can't wait to talk about it. What I really want to take you is 3 years ago when we met Sachin and his team when our company was up for sale. I'll never forget it. He came in and said that Brookfield, what is now known as Brookfield Wealth Solutions, had made a strategic decision to enter the U.S. insurance business, and they thought that American National could be the platform to do this. Well, we all know how it ended, but I want to tell you a little bit about how it started. Nobody gets up in the morning excited to be diligent. But I'll tell you that the Brookfield team from the outset and throughout the process and through the current day stood out. They're prepared, professional, provocative in a good way and personable, and that continues through. And the point is: good things are possible when you have an aligned team and high-quality people. And we do. I think you're all probably well familiar with the depth and the expertise that Brookfield Wealth Solutions brings, their deep smarts, and their access to Brookfield Asset Management's resources and capabilities. Let me tell you a little bit about the American National side of the handshake. It's characterized by over a century of dedicated service to our policyholders. We are a multiline insurance company with a solid capital base, a strong operating platform and long-term valuable relationships across our multiple distribution channels. Our core values, our financial strength, integrity, respect, service and teamwork, defined or captured by the acronym first, you'll see they line up a bit with what you heard earlier from Bruce, and our mission is to be a source of certainty for our clients. As I mentioned, I've been with the company almost 3 decades, never more excited and enthused than I have been these last 2.5 years. The catalyst for that confidence is our alignment with Brookfield Wealth Solutions. Still a new name for me, I'm getting there. And its superior access to capital and the deep talent pool that they possess. Anybody that's familiar with Brookfield knows they think big -- really big. And that's taken our opportunity window from this to this. And it's given us the conviction and the confidence to really grow the business, particularly since the association and the ownership. That's exactly the life that we're living. When we were purchased, we had about $30 billion in assets on our balance sheet. We now have over $110 billion of assets on the balance sheet, due in large measure to the strategic acquisition of American Equity Life. Our transformation has been nothing short of remarkable. In the rearview mirror, American National was generating solid single-digit returns. Now as you can see on the slide, we're generating solid 15% plus returns. The asset management capabilities that our owners bring have been very transformational. We've been able to improve the quality and the diversity of our asset base. And as you can see on the slide, our yields have increased significantly, providing a strong tailwind to the success of our retail annuity and our pension risk transfer businesses, and also providing stronger solutions for our policyholders. It's important to note though that we've also strategically stepped back and sharpened our focus, and we are fully committed to the success of that retail annuity and pension risk transfer business. Let's touch on the pension risk transfer business for a moment. We entered that business in 2023 with a lot of help and support from the Brookfield team because they've been in the PRT business in Canada. In 2023, our rookie year, we did $1 billion in sales. We have already eclipsed that in 2024. We think we're going to end the year 2x to 3x what we did in year 1. Great team, great start, a lot of momentum. Our retail annuity business has also grown significantly and has contributed very strong returns. And as the data has pointed out, that Sachin presented, tremendous upside in the market for that business. So when I think about that, having been with American National for many years, these moves, these decisions, these outcomes are somewhat unimaginable. But that's our reality now, and it's been a tremendous lift. And I would note that the increase in the growth and in the returns happened at the same time as we've lowered the volatility and reduced the tail risk in the business. And that's not a relationship you often see. We've absolutely been busy. None of this has been easy. All of this has been impactful. The association that we have, the partnership that we have, Brookfield Wealth Solutions and American National took a strong platform and made it stronger. And as I mentioned before, our important mission is to be a source of certainty for our clients. We've never been better positioned to be that for the years to come. In conclusion, American National has been successful for a very long period of time, but never as successful as we have been these last 2.5 years. Our book value and our confidence in our capabilities have compounded with Brookfield's ownership and, we believe, as many others have said to you, our best days are in front of us. Sachin, you found your platform. Thank you, everybody.

Thank you, Tim. Okay. Now I'm going to bring up 3 of my colleagues, and I'm going to ask them to join me to my left over here. And we're going to have a quick panel before we hand it back to Bruce for Q&A. Lorenzo Lorilla, Jon Bayer, Mike McRaith. I'll let each of them introduce themselves. I think that will be better than me coming over and doing it. Okay. Mike, you sat last so you get to go first. Introduce yourself, the short version, not the long -- I'm just kidding.

So good afternoon, everybody. Good to be here. Mike McRaith, Vice Chair, Brookfield Wealth Solutions. My involvements daily include regulatory engagement, governance, risk management, organizational structuring. Really working across the platform, supporting the teams as we move forward. This is effectively my third career. I was a trial lawyer, litigation attorney at a big law firm in Chicago. Then moved to the public sector became the Illinois Insurance Director, a role in which I served for over 6 years, NAIC officer, a variety of leadership roles. Those of you who are insurance nerds, some of the projects in which I was involved included Katrina, Rita, Wilma, medical malpractice crisis in Illinois, workers' comp overhaul in Illinois, Affordable Care Act implementation, and of course, the Great Financial Crisis. And as we all know, the Great Financial Crisis led to the Dodd-Frank Act, and we have, I'm sure, fond memories of Title V, which created the federal insurance office at the Treasury Department. I was appointed to be the first person to build and lead that office, which I did from June of '11 until early 2017. My responsibilities in that role included representing the country globally on insurance matters, serving on the financial stability oversight council, administering the terrorism risk insurance program, the largest reinsurance program in the world, among several other things. Early '17 moved up to New York, began my third career, and as I said, began with this great team about 3 years ago.

Jon Bayer. My primary responsibility is working directly with each of our U.S. operating companies and the leadership teams of those companies to manage those businesses on a day-to-day basis. I'm also -- I have responsibility for our global M&A practice as well. I have spent 25 years working in the insurance industry as an investor and operator and an adviser to insurance companies. I joined Brookfield 4 years ago from a -- I was part of the senior leadership team of a large publicly traded insurance company, competitor in the space. And prior to that, I advised insurance companies across the various subsectors of insurance on strategic transactions and investments as well as capital raising.

Hi, everyone. Lorenzo Lorilla, I'm Chief Investment Officer for the business. I spent my entire 20-year career in the credit markets, investing in both liquid and private credit. Prior to joining Brookfield, I oversaw credit investments for one of the largest annuity writers in the market with over $100 billion in assets. I joined that business at its inception when it just a de novo platform. I joined Brookfield 4 years ago and have been very fortunate to have been part of this journey.

Great. Thank you, guys. Okay. So let's kick it off with Mike. You gave us the short version of your biography. And so given all of that experience, maybe tell us a little bit about the state of the industry, how you've seen it evolve from the different seats you've been in.

So why don't I start from the financial crisis, Sachin, if that works for you.

That sounds awesome.

All right. A lot's happened since then. So first of all, financial crisis, insurance industry right in the vortex of the crisis. We saw from that reams of regulatory supervisory changes, which have affected the insurance industry locally and globally. The demographics, will just stipulate, the demographics are what they are. We saw the video about that earlier. But the marketplace has changed dramatically. Coming out of the crisis, American consumers were looking for protection, lifetime income, with some reasonable expectation for growth as they go forward. For all the reasons we can appreciate, coming out of the crisis, there was a lack of confidence that many sectors could provide that lifetime income consumers needed. The macro development of low interest rates, exceptionally low rates for an exceptional long period of time, introduced this disconnect between what American consumers were looking for and what the traditional life insurance and annuity market could provide. So we saw new and -- we've seen new entrants into the space, new -- an influx of billions of dollars of new capital. New entrants, by the way, with access to the different asset and investment strategies. Lorenzo, you are infinitely better positioned than I to talk about this. But what that did was produce a set of products for American consumers that they were actually looking for. So starting in 2014, we see for the first time in more than 20 years fixed annuities surpassed variable annuities in volume of sales. Looking ahead to 2022, record sales in annuity products in the United States, fixed annuities dwarfing VA sales. 2023, new record, exceeded '22 by almost 25%. $385 billion worth of annuity sales in 2023, the vast majority of that fixed and fixed index -- fixed annuity products American consumers are looking for. So the biggest change in that space, Sachin, I would say, is new entrants, new capital, new investment strategies, accretive to policyholders. And in the United States, we see supply now meeting the consumer demand.

Mike, maybe another way to put it is, just for the audience, if they don't know, variable annuities are effectively equity market indexed or linked investment products. They move up and down with the vagaries of the market every day, and they have an insurance wrapper around them. They're tax deferred. People wanted certainty. People today want certainty. A portion of their portfolio, they want to know they're going to earn 5% tax deferred for 20 years. And that introduced this whole fixed annuity market. It also brought to it all the firms, firms like ourselves, who have an expertise in investing. Because if you have an expertise in investing, you can generate a spread. So maybe with that, Lorenzo, why don't you get into sort of what -- how then the investment side of the house evolved since that time.

Yes. And then just an interesting anecdote, as you both touched on variable annuities. So when I first started managing insurance assets, one of the things I was also asked to help on was to manage and value legacy variable annuities portfolio. And I think the quick conclusion that we came to was that, to your point, Sachin, not only was it a product that didn't provide the level of certainty that policyholders needed, but was also a product that was very hard to manage from a risk perspective and manage profitably from an insurer's perspective. So I think the evolution to fixed annuities is also -- not only meets the needs of policyholders, but is also a testament to the maturation of the industry and a focus on more certainty for the policyholders. So how that's evolved, annuities are effectively a spread business, and to your point, a lot of the credit firms with capabilities in originating private credit and have capital to deploy have converged with insurance platforms, and we do think that trend is going to continue. An important point is I do think it has benefited policyholders as, if you can generate higher investment returns, you can pass that benefit through to higher crediting rates for policyholders. And I think for our business, to the extent that we can generate attractive returns net of our crediting rates, we can reinvest that into the business to grow and provide a broader suite of wealth solutions over time, which is what we aspire to do.

Right. And in 7 years, since that time, it's evolved into a $400 billion a year market, but we're just scratching the surface. And as the video showed, the increase in the number of people who will be over 65 over the next several decades, the retirement deficit, none of the $400 billion today that's penetrated the market in terms of fixed annuity sales annually has even touched DC plans. And that's going to be the next evolution of this. There's $40 trillion tied up in DC plans in the United States. That money today has effectively a 0 allocation to fixed annuities. It's all sitting in equity indexed or bond type portfolios. And as we migrate 2%, 4%, 5% of that into annuities, we think that this will become commonplace as part of your portfolio allocation. Okay. So let's talk about value creation. Jon, Tim was up here talking about the partnership with American National. Maybe talk a little bit about our experience with American National and what we focused on.

Yes. It's a great example, I think, of our Brookfield culture of being an owner and operator of great businesses. And I think to that end, when we acquired American National and we looked for levers to drive value, of course, the first thing we thought of was the investment portfolio construction. And Lorenzo can speak to that, but that's as one could expect. I think what may be equally interesting when you look at that as a case study, American National was in a lot of different business lines. Some of those were really core to our thesis for growing wealth solutions and others, well, maybe not. So what we did very early on was we worked with Tim and his team and we developed a plan for taking what had been a franchise or a line of business in the fixed deferred annuity space that was doing about $1 billion a year. And we worked with the teams collectively, developed a plan to enhance the operational capabilities and the infrastructure that American National has ultimately to be able to service a significantly larger volume of annuities and enhance the throughput within the organization. So we grew that to a business today, this year should do about $7 billion in sales from one. And then equally, and Tim alluded to it, pension risk transfer business, a business we like for a lot of reasons that we can get into. But ultimately, one that we had some expertise with from our Canadian franchise. And we were able to partner with American National, bring in new colleagues from the outside, enhance and create really an operational framework to be able to grow that business, from a standing start, we should do $3 billion this year. So those are some of the operational elements. I would just quickly note, there were other businesses that American National was in that were good businesses, they just weren't necessarily in our wheelhouse. They're more insurance risk in nature, more potential for volatility where we prefer those stable, predictable lines of business that Nick and others have spoken to. So to that end, we went through that process of evaluating each of those lines with Tim. And in several cases, actually undertook a significant divestiture transactions to the tune of about having raised through just a handful of deals of north of $1 billion that we created in fresh capital, that we were able to reinvest in American National for growth. So -- and I should point out, everything we did was at a -- was accretive to the overall valuation that we ascribed to these lines of business. So we were -- it's early days in the first couple of years, but I think we're off to a good start.

Jon is being modest, and I understand why. But I mean, ultimately, for the folks in the room who have been here for a few years, we exited a number of life products. We exited medical supplemental health. We got out of 9 states on home and auto that were not profitable. We focused the business on annuities and pensions. I'd say the partnership between Jon and Tim has been exceptional. And it speaks to really our ability to focus the business on what we're good at, how we make money in terms of investing assets, our desire to focus on return on capital and return of capital as opposed to premium growth and sales growth. And ultimately, it's led to a pretty unique platform that's been repositioned in 2 years into a largely an annuity and pension-based rider. Lorenzo, talk about the asset rotation that we went through.

Sure. And maybe just to hit the key point on what is the secret sauce of this business, and I think Nick touched on it earlier. It's really leveraging the investment apparatus through Brookfield Asset Management, through the Brookfield ecosystem, to source what we think are very, very accretive assets for our insurance liabilities, and marrying that with a thoughtful asset allocation, just getting a deep understanding of what are the liabilities that we're investing the assets against. And just to get specifically to what we did on American National, I would say we tackled that into 2 parts. There was an opportunity to enhance the returns in the existing investment portfolio at the time of the acquisition. And then extending that philosophy to what we did on how we priced a new money business, which I'm sure, Jon, you can touch on as well. So maybe just on the first part, when we closed the acquisition, and this was mid-2021, looking at the investment portfolio at that point, it had an interesting barbelled approach. It was consistent of a very large portion of what I would say are low-yielding public securities and barbelled with a decent allocation to public securities as well -- public, sorry, public equity securities. And this was at a time when we had anticipated what would be, in short order, a fairly aggressive Fed hiking cycle and rising interest rates. So from a relative value perspective, just looking at the portfolio, credit returns were getting much more favorable relative to equities. We saw an opportunity to reposition into the portfolio into what we thought was an optimized portfolio that would enhance the returns with very manageable risk. And what that looked like was maintaining a very healthy allocation to liquid assets, but also leveraging a portion of the existing assets and repositioning those into privately sourced opportunities through the Brookfield ecosystem. In addition to that, we were able to manage the duration of that investment portfolio to benefit from what was a rising rate environment. And that created a lot of value in hindsight as we look back over the last 3 years. We then extended that to how we price new business. We are in the market every day selling annuities and it's very much a collective effort across everybody in this group where we know what is the best investment opportunity set that we can invest against the products we're selling. And there was a reference to declining spreads and declining interest rates. And so those yields change on a regular basis. And so do our crediting rates. And when we get together as a group, we think about: where are the optimal investment returns today? Where are crediting rates in the market? And where do we have to be if we're going to stay disciplined to earn a mid- to high-teens return on our capital.

How often do you guys talk to each other about rate setting, annuity sales and where we want to set crediting rates?

Yes. Look, I mean it's a real-time conversation, as you know, Sachin, we get...

Pretend I don't know, for the benefit of the audience.

We get daily feeds so we track our submits and lapses and so forth. Honestly, I mean we're probably sitting down for a formal meeting once a week maybe, but it's a real -- Lorenzo sits right behind me. So I can just turn around and shout when something is going on.

We do have an open floor plan.

Yes.

Regular and dynamic interactions.

Yes, absolutely. But we are setting rates every week and we move very quickly. Two, 3 weeks ago, the 10-year dropped to 380 overnight, and we dropped our crediting rates 50 basis points that morning. So it's a dynamic business. You're constantly on top of it. And I think it speaks to our nimbleness as an organization to be able to move rates and focus on value again, rather than worrying about top line sales growth. All that being said, the platform that's been built out. That combined with AEL, we have the operating platform and capabilities to do $30 billion a year of annuities if we wanted to push capital through and if we like the rates at which we can sell at. So it's a phenomenal ability to modulate growth up and down.

Sachin, if I can just add one point to that, and I think one thing that really differentiates us from our peers is interest rates have been volatile, and we remain disciplined on what crediting rates we offer in the market. And there's been times when I think, Jon, you can attest to this, we've seen other players in the industry be much more aggressive on crediting rates and whether that's because they're taking much more investment risk or accepting lower returns on their capital. I think why we can do this is largely due to the fact that 100% of the capital is -- in this business is from Brookfield. We don't have any third-party capital invested in insurance. And I think that gives us a long-term mindset to investing and creating value not only for our policyholders, but for our equity.

Agreed. Mike, let's move to risk because it's the other side of all this and you're often the sober voice of what we need to do to manage risk. Talk about risk from your perspective, your interaction with regulators and capital.

To harken back to my somewhat lengthy bio, the Global Financial Crisis, I remember vividly being on televisions and in media across Illinois because policyholders were wondering what's going to happen, the September 2008, what's happening to my insurance company. And from that moment, regulators, supervisors have adopted standards, practices that we are expert in as a team. We have great people in place. We have the technology resources. There are no dark corners in our group. Every risk is understood, quantified and managed through internal controls, risk management, governance. I would say, and this is probably a good time to make the point, we do everything we can to minimize regulatory risk. We are 100% dedicated to meeting the expectations of our regulators with transparency, credibility, asking permission, not forgiveness. And in reality, the -- insurance is a Main Street business. It is built on this bedrock of promises being kept. Sometimes those promises are called 10 more years into the future. We have built in our perfecting an organization that understands risk, manages risk and will be there decades into the future.

And Lorenzo, capital liquidity, you can sleep at night?

Yes. I think you -- Sachin, you hit on the 2 key things that we focus on, on the investment side. It's operating with a very high margin of safety. I think having access to unique investments where we don't have to stretch for risk allows us to do that. And capital and liquidity are the 2 key things that we focus on. Capital, meaning how much equity do we have in the business relative to both the investment risk and insurance risk that we're taking. And liquidity in the form of how much liquid assets and cash flow do we generate to serve as policyholder obligations. And I think we take it a step beyond that, which is we think about a lot of the what-if scenarios. How does our investment portfolio and our overall business perform in a recessionary environment, in an elevated default environment? And I think we positioned the portfolio with a guiding principle that in all those scenarios, we operate with a very high level of capital and liquidity. How that manifests itself, I think Nick touched on this earlier, there were a few key metrics, right? We're an A-rated -- our operating companies are A-rated. Operate at 400 RBC, which is in line with the highest standards in the industry. Our investment portfolio has $50 billion of liquid assets today and an average rating of BBB+.

Yes. Look, I would just make a couple of points. I actually like your example -- a recent example of the rate action that we took a few weeks ago as a good sort of reason why we like the way our businesses are constructed today. In other words, owning several large direct issuers of insurance policies allows us to control the pen. So we can control with respect to how much those liabilities ultimately will cost us in terms of how much we're paying our customers or policyholders. We can also control in terms of the duration and the risk around those policies. So it's a really important point. And the other thing, when we talk about risk, we'll say it again, we focus on stable, predictable liabilities. It's not to say it's 100% of our business, but it is the bulk of our business right now. And that is incredibly important, not just around potential claims volatility, but also liquidity. When you have an investment portfolio construction the way we have, we can't have undue liquidity calls in our business. And that more often than not is what gets an insurance company in trouble. It's liquidity calls on the business, more so even than capital and some other risks, so.

Okay. I'll end it off on asking each of you, we have lofty ambitions. We want to get to $300 billion by the end of the decade. We were here 3 or 4 years ago when we were at ostensibly 0. So we have a little bit of know-how of how to scale. What are each of you doing every day to earn your seat to $300 billion?

Well, we're all working hard, I can vouch for that, Sachin. But we -- my perspective, we have the capacity to be opportunistic, but as Lorenzo alluded to, we don't have third-party investors. We don't have limited partners. We have the capacity, not just to be opportunistic, but be prudent, to be disciplined, patient. And we have the commitment to do the right -- to do things the right way. And my view in our space, that is a recipe for growth.

Yes, no doubt. And we've touched on a lot of the themes, but I would say the origination capacity we have in our retail businesses are second to none. We have tremendous relationships with our distribution partners who are critical to us, and there's a lot of long-term loyalty that we've built up with that group. And we've responded in kind through making investments in our core operations so that we're easier to do business with. Pension risk transfer, we're just getting started. We just started the business. We're finally now getting the word out and our brand and reputation out. So we're starting to see more of the market, be able to quote on more transactions. And then I think we've loosely touched on already, internationally, we've got teams in London and Tokyo right now actively looking. There is a tremendous demand in those markets for similar retirement savings and retirement income products to those that we offer. And whether we're operating in those countries directly or as a capital provider or a reinsurance partner to some of the incumbent counterparties, I think there's a ton of upside growth internationally.

And with that, I think on my end, it's continuing to work with our colleagues in our credit business and expanding the opportunity set on the investment side. I do see a very rich opportunity set ahead of us. As Bruce mentioned, the best is yet to come. I think insurance capital has enabled us to access new asset classes. When we started this business, we had our partnerships with Oaktree and LCM. We've since partnered with Primary Wave, a leading music royalties platform, and Castlelake, which is the leader in aviation and asset-based finance. And I do think there's going to be a virtuous cycle. As we get to deploy into these strategies and grow our insurance business, I think that also flows back into a growing credit business. And so I do think our insurance business will grow with our credit business in tandem.

Very good. Thank you, everyone. That is our presentation for this afternoon.

So we've been here for 6 hours, for those of you who have all stayed. Thank you for being here. Drinks are downstairs soon. I'll take a few questions. Not too many. It's been a long day. But we will all be here downstairs and we're happy to answer any questions. Are there any questions? One over there. Just wait for the mic, please.

Chadd Garcia from Ave Maria Focused Fund. You have about a $50 share price, most of which can be attributed to your publicly listed affiliates. You have an $84 planned price. In my mind, the discount is the market's not giving you value for the real estate that you have on your balance sheet. And then you have $100 billion in insurance assets that needs to be deployed. Should you deploy some of those assets in the real estate that's on Brookfield's balance sheet, what would those investments look like? Would it be deployed into the debt, the equity, both? What would be the regulatory hurdles that you'd have to clear in order to do that? And then maybe more broadly, how much of that insurance portfolio can be deployed into private assets as opposed to public?

Okay. So you asked 7 questions in 1. So that was unfair. Look, the short -- I'll give you a short answer, and I can speak to you afterwards if it's helpful. As we -- today -- when we had $10 billion of assets, we had $20 billion and we had $50 billion and we had $100 billion, the amount of assets that can be put in the insurance company is limited, as you go up. But it gets bigger as the base grows and as the diversification happens in the portfolio. And today, it's pretty big. So we can put both mezzanine pieces of paper, senior mortgages on our properties, and we can also put property ownership of real estate into the insurance company. But we have to look at what the regulatory capital -- there's more -- when you own our treasury bill, it's a small amount of regulatory capital you have to set aside. When you own a piece of real estate, you have to put a larger amount. So we have to look at the optimization of the structure. So -- but over time, as the business grows, a lot of that real estate, that we want to keep in the longer-term, they are ideal assets to own in the insurance companies. So a lot of that, as we grow to $300 billion, $500 billion will be held within -- in the insurance portfolio. Today we don't really have any need for the money. Over time, as we migrate it in, we could use to buy back stock, which would be one of the uses for that capital. So as it happens, as you know, we probably, we've been buying back stock, and we'll continue to do that. And that's a good use of the money when we bring it out of the insurance business. Thank you.

Mike Cyprys from Morgan Stanley. Just a question on the insurance side. I was hoping maybe you could help unpack some of the key drivers to hit the $300 billion in insurance assets in 5 years from around $110 billion today. How much are you embedding from M&A? How are you thinking about organic growth? Maybe you could talk a little bit about the M&A pipeline, how those conversations are progressing, what that environment looks like. And then on the organic side, maybe you could unpack some of the steps you're looking to take, whether it's getting more shelf space on different platforms and such.

Sachin? Since he really didn't do anything on the panel, I'm going to make him answer the question.

Okay, you can hear me. So I would say, look, where we are today, we'll do just under $20 billion this year of annuities and pensions, in really our first year as a full platform. We have the platforms that comfortably get to $30-plus billion. We've done ostensibly nothing in the U.K. and Japan. So if we just build out our U.S. platform, we feel pretty good by the end of the decade, the business grows to $200-plus billion. We should be fully licensed and ready a bid in the U.K. by the end of this year. We've had an 18-month process that's been ongoing to get our licenses up and running with the PRA. Mike and the [indiscernible] team has been instrumental at that. In Japan, we're very active. We have a team on the ground. We have a pipeline of opportunities that we're looking at. And I'd say the M&A pipeline, the reinsurance pipeline, our ability to do $30-plus billion a year of annuities, the mix that you're talking about. Just organically, I think we get to kind of $200 billion to $250 billion. And then M&A on top of that should get us to that range. And these are all projections. So it could be a little bit more M&A., we might dial back annuity production, it might be the opposite. But we feel pretty good that the market is very constructive and that our targets are pretty achievable. Does that answer your question?

So the only thing I might add, just for everyone's benefit, is our insurance team speaks in lingo, and Sachin's picked it up over 5 years, that the rest of us can't really understand. All we really sell, just like -- just so everyone understands, all we really sell is somebody gets a tax-deferred product that they earn 5% for the next 25 years. That's it. That's all we're doing. They just -- they invest their money with us, and we give them back the money on a 5% return over 25 years, or 20 years or 15 years like it's really, really simple. And pension risk transfer sounds complicated. All of this is people are collapsing -- DC plans are now back in the money, meaning they were in huge deficits. They're back in the money. And corporations that have defined benefit plans, they're just getting them off the balance sheet. They want to get rid of them. They don't want the problem. They don't know how to earn a return. But they're giving the people like us because, at a 5% yield, we can put them into products and earn better than that. And that's really a simple what it is. And what this is, it's just we have investment skills to be able to outearn that 5%, whether it's 4.5% or 4%, 5% or 5.5%, whatever that is. We can outearn that by putting it into these type of products that I was talking about, or real estate or infrastructure or whatever it is. And that's as simple as what it is. The whole basis of it is we built investment franchise to be able to deliver those products and have partnerships with people that we trust to be able to put the capital into it. And there is an enormous amount of that money that's out there that doesn't have the skills to manage it. So the growth can be -- like, we put $300 billion down, this could be trillions and trillions, because the need is very large and the skills we have are replicable. Any other questions? Okay. No one wanting for me to threaten them that they ask the question at the end of the day, I'm going to end by just saying, look, we take your interest in the company, we take your ownership of shares in the company very seriously. We always try to do our best. We think that we have an excellent business, but we can always work and do more. We try every day to deliver returns for you, and we'll keep doing that. Hopefully, you've seen a group of people here that are passionate about the business, that care about your money, and that are going to earn these kind of returns for you over the longer-term. So thank you for all your business. Thank you for coming today. Thank you for listening for 6.5 hours. If you're available, please come for some food and drink downstairs, Otherwise, enjoy the rest of your day. Thank you for being here.