Brookfield Corporation
Financials · Asset Management & Custody Banks
Structural: BN is the holdco compounder - captures three engines (asset-mgmt fees via $BAM stake, insurance float via Brookfield Wealth Solutions, principal carry + direct investments) under one permanent-capital roof. Distributable earnings target mid-teens CAGR through cycle; ~$120B insurance float earns spread on long-duration alts allocation BAM cannot access standalone.
Carried-interest pool (~$10B+ accrued unrealized) monetizes over 5-10yr as flagship funds harvest.
1) $BAM stake alone covers most of BN market cap at fair value - insurance + carry + RE stakes are effectively free optionality. 2) Insurance solutions scaling fast (~$120B → $200B+ target by 2028) at 15%+ spread ROE, structural tailwind from pension/annuity demand.
3) Carry monetization catalyst as 2018-2020 vintage funds mature; ~$1B+/yr realizations possible. 4) Permanent capital + Bruce Flatt continuity = decade-plus reinvestment runway. 5) Alts-in-insurance arbitrage (illiquid yield in regulated balance sheet) is regulator-blessed and hard to replicate.
1) Holdco discount persists (NAV-to-price gap 20-30%); market refuses to fully credit private marks. 2) Insurance leverage = rate-sensitive - sharp duration mismatch in a credit shock hurts. 3) Real-estate office exposure (BPY-legacy) still drags book; further writedowns possible.
4) Carry timing lumpy; if exit markets stay frozen, monetization slips multiple years. 5) Complex structure (BN/$BAM/BBU/$BIP/$BEP/$BAMR) increases opacity vs single-vehicle peers $BX $KKR $APO.
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