BN changes
Pick any two versions below to diff them.
- Price
- $36.27 → $41.38(+14.1%)
- About
- Brookfield Corporation is a global investment firm based in Toronto. It grows its value through three parts. The first part owns about 74% of Brookfield Asset Management (BAM), a public asset manager, directly and through its insurance arm. BAM had removed: $672 added: $682 billion of fee-bearing capital at removed: June added: September 30, 2026. The second part is Wealth Solutions, an insurance business with about $191 billion of insurance assets at June 30, 2026. It invests the money customers pay for annuities and other policies. The third part is a group of operating businesses in renewable power, infrastructure, private equity, and real estate. In 2026, shareholders approved a plan to put Brookfield Corporation and Brookfield Wealth Solutions under one new parent company, a Bermuda company. The deal is expected to close by the end of 2026.
- Thesis
- The market prices Brookfield Corporation below its intrinsic value, which is management's own estimate of its worth, called "plan value," for three reasons. First, the structure is hard to value from the outside. A parent company owns most of a public asset manager, an insurance arm, and a group of operating businesses, and money moves between them. In Q2 2026, $45 billion of BAM's $77 billion of new capital came from Brookfield's own insurer. Second, official IFRS profit is much lower and choppier than the distributable earnings figure that management uses. Third, interest rates went up. The Fed raised rates in September 2026, and the 10-year Treasury yield went above 5%. About 45% of plan value is listed holdings at market prices, and these prices fall when long rates rise. Higher rates also slow the asset sales that pay carried interest, and they lower real estate values. In 2026, plan value per share fell below the path that management set in 2025, after it rose 22% the year before. The $140 target now has a date one year later, 2031. For the gap to close, the merger with Brookfield Wealth Solutions must close by the end of 2026. Distributable earnings per share must keep growing at 12% a year or more. Management plans 17% a year before realizations. Realized carried interest must grow from about $0.5 billion a year toward management's plan of about $5 billion over the next three years. Plan value must grow each year without another move of the target date, and long rates must stop rising. removed: The evidence comes at BAM's Q3 report on November 6, removed: 2026, added: 2026 passed the first check, with strong outside fundraising and 15% growth in fee-related earnings. The next evidence comes at Brookfield's Q3 report on November 12, 2026, the merger close, the change to US accounting rules from Q1 2027, and the next Investor Day, around September 2027, which shows plan value at June 30, 2027. The gap can close partly over the next four to six quarters if rates stop rising. But the multi-layer structure stays after the merger, so part of the discount may never close.
- Checkpoints
- Sep 17, 2026: 2026 Investor Day: plan value per share. Failed. Watch: Plan value above the path set in 2025 with the 2030 target date kept passes; a lower value or a later target date fails. Outcome: Plan value was about $67 per share, down from $68, and the $140 target date moved from 2030 to 2031. Nov 6, 2026: BAM Q3 2026 results: fundraising and fee earnings. removed: Pending. added: Passed. Watch: Strong fundraising from outside investors and fee-related earnings growth near 15% passes; weak fundraising without Brookfield's own insurer fails. Fee-bearing capital is now shown gross for partner managers, so compare it with the restated figures. added: Outcome: BAM raised $25 billion in Q3 2026, of which only $3.8 billion came from Brookfield Wealth Solutions, and fee-related earnings rose 15%. Nov 12, 2026: BN Q3 2026 results: distributable earnings and carry. Pending. Watch: Distributable earnings per share up about 12% or more with rising realized carry passes; flat earnings per share or falling carry fails. Q4 2026 (estimate): Merger with Brookfield Wealth Solutions closes. Pending. Watch: The new Bermuda parent closes the deal by December 31, 2026 passes; a regulatory delay into 2027 or a termination fails. Sep 2027 (estimate): 2027 Investor Day: plan value at June 30, 2027. Pending. Watch: Plan value grows on the new path with the 2031 target date kept passes; a value at or below $67 or another date move fails.
- Recent events
- added: Nov 6, 2026: Brookfield Asset Management (BAM) reported Q3 2026 results. It raised $25 billion in the quarter, of which $3.8 billion came from Brookfield Wealth Solutions, and $123 billion so far in 2026. Fee-related earnings rose 15% to $864 million, and distributable earnings rose 15% to $763 million. Fee-bearing capital grew 13% to $682 billion. BAM realized $48 million of carried interest, its first meaningful carry since its spinout. Oct 14, 2026: Brookfield Infrastructure Partners unitholders and Brookfield Renewable Corporation shareholders approved their own corporate simplifications. The votes of Brookfield Infrastructure Corporation shareholders and Brookfield Renewable Partners unitholders are still set for October 29, 2026. Oct 9, 2026: Brookfield confirmed that it will report Q3 2026 results on November 12, 2026. On the same day, Brookfield Renewable and Brookfield Infrastructure Corporation moved their votes on their own corporate simplification to October 29, 2026. More than 99.7% of the Brookfield Renewable votes cast were for it, but approval needs two thirds of all outstanding units. Oct 1, 2026: Oaktree closed its first asset-backed finance fund at $2 billion, its target. Sep 30, 2026: The US and South Korea announced a framework for up to $120 billion of Korean money to pay for eight nuclear reactors in the US, six of them Westinghouse AP1000 units. Korea can also buy 5% to 10% of Westinghouse, which Brookfield owns with Cameco. The terms are not binding. Sep 28, 2026: BAM said that it will report Q3 2026 results on November 6, 2026. From Q3, it shows fee revenues and fee-bearing capital of its partner managers on a gross basis. Fee-related earnings and distributable earnings do not change, but growth rates must use the new figures for past quarters. Sep 21, 2026: Brookfield Finance Inc. priced $600 million of senior notes due 2031, at a 5.650% annual interest rate. Brookfield Corporation guarantees them. The sale closed on September 23, 2026. The new rate is higher than the 4.8% average rate on Brookfield's existing corporate debt. Sep 17, 2026: At its 2026 Investor Day, Brookfield said plan value was about $67 per share at June 30, 2026, down from $68 a year earlier. The total fell from $161 billion to $158 billion. Brookfield kept its target of $140 per share, but the target date is now 2031, one year later than in 2025. The plan assumes growth of 16% a year. In 2025, plan value had grown 22% and was above its path. Sep 16, 2026: The US Federal Reserve raised its interest rate target by 0.25 percentage points, to 3.75% to 4.00%. This was its first increase in three years. On September 28, the 10-year Treasury yield was 5.24%. In August, Brookfield's Q2 letter had said that a meaningful rate increase looked unlikely. Sep 15, 2026: Brookfield agreed to buy all of Reliance Worldwide, an Australian maker of plumbing products, at US$3.38 per share in cash. The enterprise value is about US$2.8 billion. The deal is expected to close in Q1 2027. Sep 4, 2026: Brookfield said that it will redeem all of its Series 51 and Series 52 preferred shares on November 1, 2026. This is about C$97 million at the redemption prices. Aug 13, 2026: Brookfield reported Q2 2026 results. Distributable earnings before realizations were $1.4 billion, or $0.61 per share, up 15% per share from a year earlier. IFRS net income for shareholders was $364 million. BAM raised a record $77 billion in the quarter, but $45 billion of it came from Brookfield Wealth Solutions, including a $40 billion mandate from Just Group. Jul 31, 2026: Brookfield completed its purchase of the rest of Oaktree, about 26%, for about $3 billion. Brookfield Corporation paid about $1.4 billion and BAM about $1.6 billion. The deal closed about two quarters later than first expected. Brookfield announced the close on August 3, 2026. Jul 29, 2026: The US Department of Energy selected Brookfield to develop and operate an AI campus in Paducah, Kentucky, worth more than $100 billion and paid for with private money. NextEra is to build and own the power supply. The power agreement still needs approval from the Kentucky Public Service Commission. Jul 16, 2026: Shareholders approved the plan to put Brookfield Corporation and Brookfield Wealth Solutions under one new parent company. 79.35% of Class A votes were for it and 20.65% were against it. The deal still needs regulatory approvals and a final court order, and is expected to close by the end of 2026. Apr 1, 2026: Brookfield closed its acquisition of Just Group, a UK insurer, for about $3.2 billion. This added roughly 700,000 customers and pushed Brookfield's insurance assets to about $180 billion. Feb 4, 2026: Brookfield named Connor Teskey, age 38, as the new CEO of Brookfield Asset Management, effective February 3, 2026. Bruce Flatt remains BAM's chairman and stays on as CEO of Brookfield Corporation.