Brookfield
A Canadian investment group that owns most of a large fund manager, an annuity insurer and stakes in power, infrastructure and property companies.
The scores
Growth3/4 →
Earnings before realizations per share rose 7% over twelve months and fee-bearing capital 19%, but Just Group and Oaktree were bought, not grown.
Business quality3/4 →
Top-ranked in infrastructure fundraising and able to write $17.5B to $25B commitments, but KKR and Apollo run the same manager-plus-insurer model.
Financial position3/4 →
$14.3B of corporate debt over 15 years with nothing due in 2026, but the insurer holds $191B against $13.1B of capital.
Execution record3/4 →
Earnings per share grew as planned, but the company's own value per share fell a little and its $140 target slipped a year.
Per share capture3/4 →
Buybacks of $695M outran issuance and purchases were paid in cash, but 26% of BAM is others' and Class B elects half the board.
Potential3/4 →
About $68B of signed commitments will earn fees once invested, in a $464.1B US annuity market growing 7%; the rest of the plan is unsigned.
Risk profile3/4 →
BAM is 59% of the value, and the insurer invests in Brookfield's own funds while regulators watch insurers and private credit.
Valuation4/4 →
Listed stakes after all corporate debt cover 57% of the price; the private rest costs 73% of its accounting value.
Evidence quality3/4 →
Listed values are market prices and earnings are filed, but private values, the insurer's spread and the plan are Brookfield's own figures.
The Verdict
We rate Brookfield Attractive. It is a solid business: a top-ranked fund manager and a fast-growing insurer whose earnings per share rose 7% last year. The price is cheap: its stakes in four listed companies, after every corporate debt, already cover more than half the share price, and the market pays about 73 cents per dollar of what Brookfield's accounts say the rest is worth. The view hinges on those private values being honest, since Brookfield sets them itself, and on its fund-manager stake, 59% of the value, not falling much further with its sector.
The long caseSavers are moving retirement money into annuities and investors into private infrastructure and credit funds, and Brookfield sells both, so its insurer and fund fees keep growing.
The evidence under this - 5 claims
- The private book values are IFRS appraisals made by Brookfield; real estate earnings fell from $872M to $638M over the year (C03), so its book may be high.
- BAM is 59% of the market value (C31), so a fall in BAM's price moves this arithmetic more than anything in the private holdings.
BAM's own price fell 21.0% in a year (C33), and Brookfield's tracked it.
- The ranking counts capital raised over five years and its detail is behind a subscriber wall; only the headline and summary could be read.
- The ranked manager is Brookfield Asset Management, of which Brookfield Corporation owns 74%, not the corporation itself.
The company
Brookfield is three businesses. Its fund manager raises money from pension funds, sovereign funds and wealthy savers and invests it in power plants, pipelines, offices and private companies. Its insurer sells annuities, a lump sum paid in return for a guaranteed income, in the US, the UK and Japan, and invests the premiums. And it owns big stakes in its own listed companies.
KKR and Apollo run the same mix. US savers bought $464.1B of annuities in 2025.
The evidence under this - 4 claims
How it makes money
Fund investors pay a yearly fee on money they commit for ten years or more, plus about a fifth of profits above a hurdle, called carried interest. The insurer earns the gap between what its investments pay and what it promises savers. The listed companies pay dividends.
Over the year to June 2026 that came to $2.94B from the fund manager, $1.76B from the insurer and $1.55B from the operating businesses, before $593M of corporate costs.
The evidence under this - 2 claims
Where the money comes from, stream by stream
| Stream | Share of sales (twelve months to June 30, 2026) | How it earns it |
|---|---|---|
| Asset Management | 47% of distributable earnings before corporate costs | Its 74% of BAM's fees on outside investors' funds, carried interest on older funds and returns on its own fund stakes. |
| Wealth Solutions | 28% of distributable earnings before corporate costs | Annuity and insurance money invested at a spread over what policyholders are paid. |
| Operating Businesses | 25% of distributable earnings before corporate costs | Distributions from its stakes in the listed infrastructure, renewable and business partnerships, and real estate earnings. |
Who runs it
Bruce Flatt has run Brookfield since 2002, after joining in 1990; Nicholas Goodman runs the money as president and finance chief. The partners, current and former executives, own about a fifth of the shares and, through a trust, elect half the board. Flatt takes no bonus: nearly all his pay is shares, so he gains only if the stock rises. No award rides on the company's own earnings or value per share.
The evidence under this - 3 claims
The Partners are current and former executives and directors, so the 20% overstates what today's managers own; the 12% group figure is the narrower measure.
No award pays on distributable earnings per share or the company's own value per share, and the bonus has no formula, so the plan states no measurable target a shareholder could check.
Why it wins, and who could beat it
Why customers come back
Size wins the biggest deals. Few buyers can commit $10B to $25B to one project, and Brookfield did twice in one quarter: $25B with Bloom Energy for fuel cells at data centres, and a $17.5B government-backed loan for Westinghouse reactor equipment.
Winning those deals builds the record that raises the next fund. A trade publication's 2025 ranking of infrastructure managers put Brookfield first, and it raised a record $77B in Q2 2026.
The evidence under this - 4 claims
- The ranking counts capital raised over five years and its detail is behind a subscriber wall; only the headline and summary could be read.
- The ranked manager is Brookfield Asset Management, of which Brookfield Corporation owns 74%, not the corporation itself.
- Blackstone, KKR and Apollo also write multi-billion cheques; scale is shared by the largest few managers, not unique to Brookfield (C16).
- Infrastructure Investor's 2025 summary shows Macquarie ahead of Brookfield on assets in a different ranking, so 'first' depends on the measure.
The threat
KKR and Apollo each own an annuity insurer and compete for the same savers and the same fund money; Blackstone and Ares compete for fund money. The largest pension funds can also invest directly and stop paying fees. Other insurers sell annuities too, at thinner margins, Brookfield says.
The evidence under this - 3 claims
The 220 figure counts unrealised gains on Brookfield's own equity funds, which are marked by Brookfield and have not been sold.
The rivals: KKR, APO, BX, ARES, and 3 more that are private, in-house or listed abroad.
Who else does this, rival by rival
| Ticker | Rival | Where it competes | How far along | Priced against it |
|---|---|---|---|---|
| KKR · APO | KKR and Apollo, each pairing a manager with an annuity insurerPriced against it: Yes | Wealth Solutions | On sale | Yes |
| BX · ARES | Blackstone and Ares raising the same fundsPriced against it: One segment only | Asset Management | On sale | One segment only |
| In-house | Large pension and sovereign funds investing directlyPriced against it: In-house | Asset Management | On sale | In-house |
| Not listed | Pension funds, sovereign funds and other owners bidding for the same power, infrastructure and real estate assetsPriced against it: Not listed | Operating Businesses | On sale | Not listed |
| Not listed | Traditional life insurers selling fixed annuitiesPriced against it: Not listed | Wealth Solutions | On sale | Not listed |
How big it could get
How big this could get
The insurer sells into a big, growing market. US savers bought $464.1B of annuities in 2025, up 7%, and $293.2B of that was the fixed kinds Brookfield sells most. Brookfield sold $5B in one quarter across all its countries, so even large growth leaves it a small share.
The evidence under this - 2 claims
Who has signed
Fund investors have already promised about $68B that Brookfield has not yet invested. Once invested, it would add about $680M of fees a year.
The evidence under this - 1 claim
Commitments are called only when the manager invests; slow deployment delays the fees.
The results
What growth costs
Brookfield is a holding company, so there are no sales costs to watch. It grows by spending capital, buying insurers and the rest of Oaktree, rather than through running costs. Its head-office and borrowing costs fell last year as earnings rose, but one year is too short to say growth makes it more profitable.
The evidence under this - 2 claims
The last report (13 Aug)
Quarter ended June 2026, filed figures.
In Q2 2026 Brookfield's own earnings measure, before profits from selling assets, was $1.43B, or $0.61 a share against $0.53 a year earlier. Its funds raised a record $77B, and fees grew 20%.
The insurer grew most, to $191B of investments, after buying Just Group in the UK. The weak spot was property: its earnings over twelve months fell to $638M from $872M, while Brookfield still values that property near its accounting value.
What it did to the thesisIt confirmed that the fund manager and the insurer are growing earnings per share. It left open whether the property values hold, which is the weakest part of the private holdings the price is discounting.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $0.60 against $0.62 expected.
The evidence under this - 5 claims
What management did with the money
Over the year to June 2026 Brookfield paid $596M of dividends and bought back 16.6M shares for $695M, at an average $42.04, above today's price. It paid cash, not new shares, for the rest of Oaktree and for Just Group.
Insiders in 2024Q1: 0 purchases and 5 sales, from their Form 4 filings.
The evidence under this - 2 claims
The price, and where we disagree
In short. Cheap. Listed stakes, priced by the market every day, cover more than half the price after all corporate debt, and the rest costs less than its accounting value.
The shares fell 18.4% in a year, while KKR fell 27.6% and Blackstone 32.9%: investors fear losses in private loans and at insurers that hold them, a worry the Federal Reserve also raised in May 2026. Brookfield's earnings per share rose through it.
Two tests are close. Q3 2026 results arrive on 12 November, and the merger with its insurer into one Bermuda company is due by the end of 2026, which Brookfield says could open the way to US index funds.
The evidence under this - 5 claims
How we read the multiple
Most of Brookfield is shares in companies that trade daily, so value it as the sum of its parts:
- Brookfield's shares are worth $87.4B at $36.92.
- Its stakes in four listed companies are worth $70.1B at 2 October prices.
- Less $20.1B of corporate debt and other claims, $49.9B, or $21.10 a share, is left.
- The market pays $37.4B for the rest, which its accounts value at $51.4B.
- That is 73 cents per dollar, with nothing for future profit shares.
Against its own history. On these accounting measures it costs more than usual, but they leave out what its listed stakes trade at, which is why we value the parts instead.
The evidence under this - 6 claims
- The private book values are IFRS appraisals made by Brookfield; real estate earnings fell from $872M to $638M over the year (C03), so its book may be high.
- BAM is 59% of the market value (C31), so a fall in BAM's price moves this arithmetic more than anything in the private holdings.
BAM's own price fell 21.0% in a year (C33), and Brookfield's tracked it.
Distributable earnings is the company's own measure and excludes depreciation that is a real cost for some assets; net income is not wrong, only on a different basis.
Priced against its rivals
The competitors its own annual report names, each confirmed against the rival's filing. Measured on price for each $1 of net worth excluding goodwill, cheapest first:
| Ticker | Company | price for each $1 of net worth excluding goodwill |
|---|---|---|
| BN | Brookfield | 0.9× |
| KKR | KKR & Co. | 1.0× |
| APO | Apollo Global Management | 2.5× |
The middle of the other 2 is 1.8. Brookfield Corporation is cheapest of 3.
Rivals' figures come from a data provider, so read the spread of the group rather than any single pair.
It is the cheapest of the three on assets, and its accounts carry its fund-manager stake far below market value, so the real gap is wider and is its own.
Where we disagree with the market
Listed fund managers and insurers carry hidden private-credit risk, so Brookfield deserves a lower price with the rest.
The listed stakes alone cover most of the price, so the shares are cheap even if the private values are trimmed.
The market is pricing a sector's fear, but more than half of Brookfield's value is stakes whose prices are set in the market every day. Even with its property at half its accounting value, the parts are worth about today's price.
Against us: Brookfield's own value per share did not grow last year and its target slipped a year, so the discount widened from about 35% to 45%. A cheap stock can stay cheap.
What analysts say, and the evidence
The evidence under this - 4 claims
- The private book values are IFRS appraisals made by Brookfield; real estate earnings fell from $872M to $638M over the year (C03), so its book may be high.
- BAM is 59% of the market value (C31), so a fall in BAM's price moves this arithmetic more than anything in the private holdings.
The company says the plan is rolled forward each year, so a constant five-year horizon is its method, not a delay (S08).
What could go wrong, and how we would know
The risks
- Property worth less Property earnings fell to $638M from $872M in a year; if its $26.7B accounting value is too high, the discount shrinks.
- BAM keeps falling The fund-manager stake is 59% of the value; another 20% fall in BAM would remove about $4.35 a share.
- Insurer borrows heavily The insurer holds $191B of investments against $13.1B of capital, so a 1% loss on its investments would cost about 15% of that capital.
- Money flows inside the family The insurer invests in Brookfield's own funds, which earn fees on it, so Brookfield sets the value of much of what it owns.
- Control sits elsewhere The holder of the Class B shares elects half the board, so outside shareholders cannot replace management.
The evidence under this - 8 claims
- The private book values are IFRS appraisals made by Brookfield; real estate earnings fell from $872M to $638M over the year (C03), so its book may be high.
- BAM is 59% of the market value (C31), so a fall in BAM's price moves this arithmetic more than anything in the private holdings.
BAM's own price fell 21.0% in a year (C33), and Brookfield's tracked it.
- The earnings measure is the company's own and excludes unrealised losses; the 2.2% spread includes marks on equity funds that the call said lift it from under 180 to about 220 basis points (C12).
- The book value includes Just Group from mid-2026 only, so the return on a full year of the larger book is not yet known.
What we still do not know
- What Brookfield's property would sell for today against the value in its accounts.
- How much of the insurer's money is in Brookfield's own funds, and at what fees.
- Whether the Bermuda merger leads to US index inclusion, and when.
The evidence under this - 3 claims
What would change our view
- Attractive→NeutralThe gap to the parts closes
It needs:
- ○Brookfield's shares become worth as much as its listed stakes at market prices plus everything else at its accounting value.checked daily
- Attractive→NeutralThe private values prove too high
It needs any of:
- ○Property earnings over twelve months fall below $500M, from $638M.checked at the next results, due by 12 Nov
- ○The insurer's earnings over twelve months fall below $1.5B, from $1.76B.checked at the next results, due by 12 Nov
We would also be wrong if
- The insurer reports credit losses that need fresh money from Brookfield.
- Earnings per share before asset sales fall over twelve months.
What is coming
- 1 November 2026 Redemption of two preferred share series: Whether new notes refinance preferred capital as planned, the corporate balance sheet the financial position score reads.
Every dated event ahead
- 1 November 2026 Redemption of two preferred share series: Whether new notes refinance preferred capital as planned, the corporate balance sheet the financial position score reads.
- 12 November 2026 Q3 2026 results: Twelve-month earnings before realizations per share against the last reading, and whether real estate earnings stop falling.
- December 2026 Combination with Brookfield Wealth Solutions under a new Bermuda parent closes: Whether regulators approve on time and the single listed company gains the US index inclusion management expects.
- February 2027 Q4 and full-year 2026 results: The first year against the September 2026 plan, and the company's own value per share against the year before.
Since we wrote this
- 5 OctThesis reviewThe long case now sits under the verdictAfter the five-name pilot, the owner asked for the long case on every thesis.
- 4 OctThesis writtenAttractive, medium convictionWritten three weeks after the 2026 investor day and five weeks before Q3 2026 results, with the shares at $36.92, down 18.4% in a year with their sector.
- 4 OctThesis reviewOwner's checklist: revenue streams, cost of growth, management, catalystsThe owner's checklist found the method silent on who runs the company, what growth costs, where the money comes from and what is dated ahead; this pass fills those four blocks from the circular and annual report.
Also checked 2 times with nothing new to act on.
Sources 21
Sources - 21
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany release2026-08-13distributable earnings by business, fundraising, fee-bearing capital, insurance assets and spread, net income, buybacks, deployable capitalbacksC02C03C05C09C23C26C37C38C41
- S02primarycompany release2026-08-13the capital table on IFRS and blended bases, units held, value per share, corporate debt maturities, capital allocation, highlights
Our balance sheet is conservatively capitalized, with corporate debt at the Corporation carrying a weighted-average term of 15 years and no maturities in 2026.
backsC01C02C08C10C18C19C23C26C27 - S03primarycompany filing2026-08-13consolidated balance sheet, insurance assets by channel, uncalled commitmentsbacksC09C24C39
- S04primarycompany filing2026-03-18business description, risk factors on competition, fundraising and insourcingbacksC01C17C42C43C44C45C49
- S05primarycompany filing2026-03-18share classes and board election rightsbacksC29C46
- S06primarycompany release2026-02-122025 distributable earnings and per-share growth, diluted earningsbacksC04
- S07primarytranscript2026-08-13analyst questions on the annuity and Just Group spreads, the insurer's investment pipeline, related-party transfers
If you just take the unrealized marks on our funds that are invested in equity-oriented strategies that 180 spread goes to about 220 in the current quarter.
backsC12C38 - S08primarycompany release2026-09-17the sum-of-the-parts plan value and its bases, five-year earnings and insurance asset targets
Plan Value per share should increase to $140 by 2031
backsC14C20C40 - S09primarycompany release2025-09-10the 2025 plan value, discount and 2030 target
we expect to deliver plan value per share growth of 16% on an annualized basis
backsC21 - S10primarycompany release2026-06-05the combination's terms, domicile and exchange ratio
Opens a path to broader global index inclusion
backsC28 - S11primarycompany release2026-07-16approval of the combination, expected closing, board elected by each share classbacksC28C29
- S12primarycompany release2026-08-03completion of the Oaktree purchasebacksC41
- S13primarycompany release2026-09-21the coupon, size and maturity of the latest notesbacksC25
- S14primaryindustry data2026-03-23US annuity sales by product for 2025
Total U.S. annuity sales increased 7% to $464.1 billion in the 2025, according to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 93% of the total U.S. annuity market.
backsC13 - S15secondaryindustry data2025-06-02Infrastructure Investor: II 100: Brookfield tops our global manager ranking PEI Media (Infrastructure Investor)Brookfield's rank among infrastructure managers by capital raised (headline and summary; detail paywalled)
We’ve reset the counting period for this year’s Infrastructure Investor 100, with the ranking amounting to $1trn.
backsC06 - S16primaryregulator2026-05-28Federal Reserve Financial Stability Report, May 2026: Funding Risks Board of Governors of the Federal Reserve Systemlife insurers' nontraditional funding and private credit redemption pressure
Total nontraditional liabilities summed to $531 billion in the fourth quarter of 2025, growing 15 percent in real terms from a year ago
backsC15 - S17primarycompany filing2026-02-27its three segments, Global Atlantic, and its statement on balance sheet sizebacksC16
- S18primarycompany filing2026-02-25Apollo Global Management Form 10-K, fiscal year ended December 31, 2025 Apollo Global Management, Inc.its three segments, AthenebacksC16
- S19secondaryvendor data2026-10-04Research pack (FMP market tier and FINRA short interest), frozen beside this thesiscontent/BN/research-pack.jsonclose, 252-session return and decomposition, peer returns, consensus history, target drift, short interest, cohort multiples, share-count seriesbacksC27C32C33C34C35
- S20secondaryvendor data2026-10-042 October 2026 closes for each listed stakebacksC33
- S21primarycompany filing2026-06-05principal holders of voting shares and the Partners' holdings at May 28, 2026, the Class B trust, directors' holdings, the compensation discussion and analysis, the CEO's five-year pay review, directors and officers as a groupbacksC46C47C48