BrookfieldNYSE: BN

Fee-Related Earnings up 14% Year-Over-Year to $644 Million

Brookfield Corporation is a proven wealth creator with plans to continue growing value for its shareholders.

BAM Shareholders to Vote at a Special Meeting to Be Held on December 20, 2024 BAM Shareholders to Vote at a Special Meeting to Be Held on December 20, 2024

BAM Shareholders to Vote at a Special Meeting to Be Held on December 20, 2024 BAM Shareholders to Vote at a Special Meeting to Be Held on December 20, 2024

LONDON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Ørsted (CPH: ORSTED) has signed a partnership agreement with Brookfield (NYSE: BAM, TSX: BAM), its institutional partners and its listed affiliate Brookfield Renewable (NYSE: BEP, BEPC; TSX: BEP.UN, BEPC), who will acquire 12.45% minority stakes in four of Ørsted's operational U.K. offshore wind farms: Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension, which have a combined total capacity of approximately 3.5 GW.

Brookfield Asset Management Ltd.'s complex structure and underperformance compared to peers raises concerns about its ability to follow through on promises. Brookfield's high real estate exposure, particularly in the struggling office and retail sectors, and growing debt at BN, pose significant risks amid economic uncertainties. Despite strong positioning in renewables and credit, BAM's fundamentals lag peers, making other alternative asset managers more attractive investments.

Private credit market is experiencing a significant boom, which is driven by increased regulations in the banking sector and higher base rates. As a result of this, the BDC IPO market has been active in 2024. In this article, I elaborate on two newly publicly traded BDCs, which offer one of the best defensive characteristics in the entire sector.

Brookfield Renewable Partners is a top-tier renewable energy investment, benefiting from the green energy trend, falling interest rates, and growing demand for alternative assets. The company's stake in nuclear energy firm Westinghouse is a valuable asset, especially with rising demand from major tech companies. A steadily increasing dividend makes Brookfield Renewable Partners an even more attractive investment.

Brookfield Asset Management, led by Bruce Flatt, is a high-quality, long-term investment with a proven track record of strong returns over 25 years. The company manages ~$1 trillion in assets, with a goal to double this in the next 5 years. Brookfield's business model is capital-light, boasting over 60% operating margins and ~50% distributable earnings margins, most of which are returned to shareholders.