US Election 2024: Here's What Brookfield Business Partners Says About M&A Activity

Shares of Brookfield Business Partners ($BBU) rose over 3% on Friday after the firm reported its third-quarter results.

Jaspreet Dehl, Managing Partner and Chief Financial Officer in Brookfield’s Private Equity Group, said during the earnings call that the conclusion of the election and the Federal Reserve’s rate cut on Thursday sets up the market quite well for more M&A activity.

“I'd say just generally, the M&A environment seems to be a lot more robust. The credit markets have been open for a while, but most of the credit market activity we've seen this year has been kind of re-financings and re-pricings,” Dehl said, according to an earnings call transcript.

She explained that although the M&A market has been light, it does “feel like there's a lot more activity.” “And we can see that broadly in the market, but also in our own pipeline, a lot more or deals seem more actionable and are moving forward quicker, I'd say, than we've seen over the last 12 to 18 months,” Dehl said.

The Brookfield executive’s take aligns with what Carlyle Group Inc ($CG) CEO Harvey Schwartz said during the firm’s earnings call.

Schwartz said that markets like certainty and with the election results out of the way, the enthusiasm is apparent in the equity markets.

“Over the medium to long term, this should be a further catalyst for IPOs, M&A and key sectors we invest in. This should be an environment in which we are well positioned to capitalize on monetization opportunities and put capital to work,” Schwartz said, according to the earnings transcript.

Meanwhile, Brookfield reported third-quarter net income attributable to unit holders at $301 million compared to net loss of $44 million in the prior period. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the three months ended Sept. 30, 2024 came in at $844 million compared to $655 million in the prior period.

CEO Anuj Ranjan said that the progress being made on the company’s capital recycling initiatives will provide the firm with significant liquidity to support its growth. “…with interest rates normalizing, we are in a great position to continue compounding value for investors,” he said.

Notably, shares of Brookfield Business Partners have risen over 23% since the beginning of the year.

Also See: Icahn Enterprises Stock Falls After Firm Halves Dividend To Help Fund Investment In CVR Energy: But Retail Confidence Improves

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