Brookfield is a leading global alternative asset manager with approximately $690 billion of assets under management across real estate, infrastructure, renewable power, private equity, and credit. Their objective is to generate attractive long-term risk- adjusted returns for the benefit of our clients and shareholders.

They manage a range of public and private investment products and services for institutional and retail clients. They earn asset management income for doing so and align our interests with their clients by investing alongside them. They have access to large-scale capital enabling us to make investments in sizeable, premier assets and businesses across geographies and asset classes that few managers can do.

BEPC is onto the next phase of growth for Brookfield. They have widened the moat of our business globally and continue to add new products for our clients. With interest rates low, alternatives are the investment category that offers an attractive return for their clients, and they are innovating to provide them with new products. They are also scaling up the size of our large flagship funds. Their size differentiates us and therefore enhances our returns.

In addition, Their clients are looking for income replacement with less volatility, and they are continuing to add perpetual core-plus products to our platform. New areas of focus for them are investing in the transition of the economy to net-zero carbon emissions; reinsurance; technology investing, where they are moving from a venture into full-scale technology private equity investing; and LP secondaries, where their clients are increasingly looking for scale managers. Each of these areas has the potential to provide a meaningful opportunity for the clients and their businesses.

Key Points:

1. Low-interest rates will continue to drive demand for alternative investments. Interest rates appear to be set to stay in a lowish band for several years. As a result, alternatives are very attractive to investors. This provides an exceptional backdrop for our overall business.

2. Renewable energy is growing. The global electricity make-up is currently 25% from renewable sources, and this is set to grow to 50% or more over the next 30 years. The investment required to accomplish this is in the tens of trillions of dollars.

3. Technology is affecting all businesses, as it always has. The difference today is the pace of change, which brings with it a great opportunity, but also risk. We are embracing this.

4. Alternative credit is here to stay. Capital from institutions and reinsurers will increasingly drive the credit markets. Alternative managers have the opportunity to scale up credit as a fixed income replacement for institutional investors.

5. Most real estates withstood the dramatic shutdowns in 2020, and while some property will be used in new ways in the future, there will be no major paradigm shift. Great real estate in great cities will continue to be just that. This will become evident once the global economy recovers.

6. Many businesses and governments require capital. While businesses have survived thus far by borrowing heavily, they now need equity. As a result, there will be attractive opportunities to invest in businesses and acquire infrastructure from governments.