Brookfield Asset Management: Alternative Cash Flows - [Business Breakdowns, EP. 85]

This is Matt Reustle and today we are breaking down the giant alternative asset manager, Brookfield. Today Brookfield boasts $750bn in assets under management, and it’s a global footprint that includes many noteworthy office buildings and key infrastructure assets. To break down Brookfield, I’m joined by Nima Shayegh from Rumi Capital Partners. We cover Brookfield's powerful history, the evolutionary changes in the operating structure, and what separates Brookfield from other big managers. We started with Blackstone, we covered Vanguard, and now we hope you enjoy this breakdown of Brookfield.

 

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

 

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Show Notes

[00:02:19] - [First question] - The size and scale of Brookfield and what they do

[00:04:52] - How they invest through their balance sheet

[00:06:54] - How Brookfield achieved the scale it has today 

[00:10:36] - What differentiates Brookfield from their competitors in alternative assets

[00:14:31] - Their unique employee compensation strategy  

[00:18:19] - The various segments of their business that helped them achieve their scale

[00:21:05] - Breaking down the economic structure of their revenue streams

[00:25:50] - Percentage of revenue generated by performance and management fees

[00:27:13] - Complex corporate structure and getting comfortable with it as an investor

[00:29:33] - Overview of their ownership structure and its prior scrutiny 

[00:32:32] - Brookfield’s philosophy on debt writ large 

[00:36:04] - Their strategy and approach to capital allocation

[00:40:11] - Important growth metrics they track most closely 

[00:45:57] - Insights and benefits behind merging with other alternative managers

[00:47:23] - How interest rates impact an asset manager like Brookfield

[00:50:12] - Correlation between rising inflation and dividend stock selloffs 

[00:52:38] - Other major risks that might pose a threat to Brookfield’s growth  

[00:53:51] - Major lessons from intimately studying Brookfield