Brookfield's Connor Teskey talks India market opportunities with Bloomberg TV - BROOKFIELD ASSET MANAGEMENT LTD

Financial Performance:

• Raised a record $77 billion in new capital during the second quarter.
• Holds $35 billion in assets currently deployed in India.

Guidance and Future Outlook:

• Projects assets under management in India to exceed $100 billion within the next five years.
• Identifies AI infrastructure as the fastest-growing sector, with demand expected to significantly outweigh supply through the end of the decade.
• Foresees a generational build-out of energy and digital infrastructure driven by global trends in electrification and supply chain restructuring.

Business Segments and Product Lines:

• Expanding into the insurance sector and AI build-out, citing a $7 trillion opportunity.
• Increasing focus on traditional infrastructure (utility grids, gas pipelines, transportation) alongside digital assets.
• Targeting four specific energy sectors: fuel cells, renewables, batteries, and nuclear power, alongside transmission grid expansion.
• Leveraging India's IT sector for AI deployment and positioning it as a primary alternative for supply chain diversification.

Market and Competitive Landscape:

• Demand is broad-based across the U.S., Asia, Europe, and the GCC, driven by the digitalization of the economy and energy shortages.
• India is characterized as a "developed" market in terms of opportunity, liquidity, and labor force, ranking at the top of growth focus lists.
• Private capital is increasingly filling gaps left by stretched government balance sheets, partnering with both governments and large corporations.
• Higher interest rates create a competitive advantage for firms with superior capital access, such as Brookfield.

Risks and Challenges:

• Persistent headwinds in private markets including high interest rates, lack of cash returns, and volatility in software sectors.
• Potential project delays due to permitting processes and market settling.
• Challenges in sourcing capital and operating capabilities to execute projects given the high demand.

Management Commentary and Tone:

• Management maintains a highly confident tone regarding the long-term demand for infrastructure and energy.
• Characterizes the current environment as a "greatest build-out" with no shortage of demand or capital, but a need for strong operating capabilities.
• Describes higher interest rates as being in a "constructive range" and believes market growth will overwhelm slightly elevated capital costs.
• Dismisses short-term market noise regarding AI, emphasizing that fundamental demand remains far ahead of supply.

Analyst Questions and Answers:

• India Strategy: Confirmed $35B current investment with a $100B+ five-year target, citing India's role in energy, infrastructure, and supply chain resilience.
• Geography: Identified the U.S. and Asia as primary markets for AI-driven growth, though opportunities are global.
• Energy Mix: Outlined a balanced approach favoring gas, renewables, nuclear, and storage to meet diverse energy needs.
• Public-Private Partnerships: Confirmed a shift toward private capital partnering with governments and corporates to address infrastructure needs where public balance sheets are limited.
• Rate Environment: Acknowledged difficulties for some but highlighted Brookfield's capital access as a strategic advantage to capitalize on distressed situations or opportunities.

Other Key Points:

• Brookfield views India not as a developing market but as a mature, liquid investment vehicle with a large, educated labor force.
• Emphasis is placed on "behind-the-meter" investments and transmission grids due to the inability of existing grids to meet energy demand.
• Management asserts that the lack of capital for project execution is a bottleneck rather than a lack of capital availability itself.