Core Insights - Brookfield Corporation is expected to continue enriching its investors in the coming years, having achieved strong financial performance in 2025 [1][11] Financial Performance - In 2025, Brookfield Corporation grew its distributable earnings by 11% to a record $5.4 billion, outperforming the S&P 500's return of 18% with a total return of 21% [2] - Over the past three decades, Brookfield has delivered a 19% annual return, significantly exceeding the S&P 500's average annual return of 11% [2] Business Segments - The company's asset management business increased its fee-bearing capital to $603 billion, resulting in a 22% rise in fee-related earnings to $3 billion [5] - Brookfield's wealth solutions business saw a 24% growth in earnings, driven by strong investment performance and expansion of its insurance asset base [5] - The operating businesses, including infrastructure, renewable power, industrial services, and real estate, continue to generate increasing cash flows [5] Strategic Actions - Brookfield sold a record $91 billion in assets in the previous year, leveraging favorable market conditions to realize value from its operations-oriented investment strategy [6] - The company deployed $126 billion into new investments and repurchased over $1 billion of its shares at an average price of $36, which is a 50% discount to its estimated intrinsic value of $68 per share [6] - Brookfield recently increased its dividend payout by 17% [6] Thematic Investment Strategy - Brookfield is focusing on large-scale infrastructure investments to support AI growth, estimating a need for $7 trillion in investments over the next decade for data centers, power generation, and related infrastructure [8] - The company is partnering with Nvidia to build AI factories and has secured significant power agreements with Google and Microsoft [9] - This thematic investment strategy positions Brookfield to grow its earnings per share by over 20% annually in the next five years, aiming for total returns exceeding 15% annually [10]

Financial Data and Key Metrics Changes - In 2025, the company raised $112 billion of capital, reflecting strong demand from various investor types [7] - Fee-bearing capital increased by 12% year-over-year to over $600 billion, with fee-related earnings reaching a record $3 billion, up 22% year-over-year [8] - Distributable earnings were $2.7 billion, an increase of 14% from the prior year [8][26] Business Line Data and Key Metrics Changes - In renewable power, significant investments included acquiring Neoen and National Grid's US renewables platform [15] - The private equity sector saw investments in Chemelex, a global industrial technology business [15] - Infrastructure investments included Hotwire Communications and Colonial Pipeline, enhancing the company's footprint in essential services [15] Market Data and Key Metrics Changes - The company entered 2026 with a favorable market backdrop, characterized by stabilized interest rates and resilient economic growth [9] - There is renewed global demand for real assets that generate stable cash flows, particularly in the context of inflation protection [9][10] Company Strategy and Development Direction - The company aims to double its business by 2030 and achieve a 15% annualized earnings growth [10] - A significant focus is on expanding access to private assets for individual investors through retirement and long-duration savings vehicles [10] - The company is well-positioned to capture growth opportunities in infrastructure, private equity, and credit sectors [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, expecting strong fundraising momentum and growth across various platforms [25] - The company anticipates a record year for fundraising, particularly in private equity and infrastructure [19][25] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [33] Other Important Information - The board of directors approved a 15% increase in the quarterly dividend to $0.50025 per share, payable on March 31, 2026 [34] - The company plans to enhance disclosure around partner managers to provide clearer insights into its evolving platform [26] Q&A Session Summary Question: Is secondaries a strategically important area for the company? - Management acknowledged that secondaries are a growing segment and will be opportunistic in exploring this area, focusing on highly additive opportunities [37][38] Question: Can you elaborate on the growth outlook for 2026? - Management expects growth rates in the mid- to high teens, driven by strong fundraising and deployment activity, with several initiatives expected to add $200 million to fee-related earnings [40][42] Question: How does the company view AI-related disruption? - Management sees AI as a net positive, with minimal exposure to software businesses, focusing instead on long-term contracted real assets [48][49] Question: What is the company's liquidity position? - The company has over $3 billion in liquidity, which supports growth initiatives and capital deployment [52][56] Question: How is the company positioned in the credit market? - Management noted robust demand for credit, particularly in real asset and asset-backed lending, with modest redemptions in private wealth strategies [76][77] Question: What is the outlook for the wealth channel? - The company expects continued growth in the wealth channel, driven by new product launches and strong early reception [80][81]

Financial Data and Key Metrics Changes - In 2025, the company raised $112 billion of capital, reflecting strong demand from various investor types [7] - Fee-bearing capital increased by 12% year-over-year to over $600 billion, with fee-related earnings reaching a record $3 billion, up 22% year-over-year [8] - Distributable earnings were $2.7 billion, an increase of 14% from the prior year, with a strong focus on fee-based income [8][26] Business Line Data and Key Metrics Changes - In renewable power, significant investments included acquiring Neoen and National Grid's US renewables platform [15] - The private equity sector saw investments in Chemelex, a global industrial technology business, and the infrastructure business acquired Hotwire Communications [15] - The real estate segment acquired Generator Hostels and National Storage REIT, reflecting a focus on essential assets with durable cash flows [15] Market Data and Key Metrics Changes - The company entered 2026 with a favorable market environment characterized by stabilized interest rates and resilient economic growth [9] - There is a growing demand for real assets that generate stable cash flows, particularly in the context of inflation protection [9] - The structural shift in capital allocation is evident as individual investors gain access to private assets through retirement and long-duration savings vehicles [10] Company Strategy and Development Direction - The company aims to double its business by 2030 and achieve a 15% annualized earnings growth [10] - A focus on essential assets and businesses with strong operational capabilities is central to the company's investment strategy [15] - The company is well-positioned to capture opportunities in AI infrastructure, with a $100 billion global AI infrastructure program already underway [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook for 2026, expecting strong fundraising momentum and deployment across various platforms [25] - The company anticipates a record year for fundraising in 2026, driven by strong demand in both infrastructure and private equity [19] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [33] Other Important Information - The board of directors approved a 15% increase in the quarterly dividend to $0.50025 per share, reflecting confidence in the company's financial health [34] - The company plans to enhance disclosure around partner managers to provide clearer insights into its evolving platform [26] Q&A Session Summary Question: Is secondaries a strategically important area for the company? - Management acknowledged that secondaries are a growing segment and will be tracked closely, but any future actions will be selective and opportunistic [37][38] Question: What are the growth expectations for 2026? - Management expects growth rates in the mid- to high teens, with several initiatives already funded that will contribute to earnings growth [42] Question: How does the company view AI-related disruption? - Management sees AI as a net positive, with minimal exposure to software businesses, focusing instead on long-term contracted real assets [48][49] Question: What is the company's liquidity position? - The company has over $3 billion in liquidity, which is well-capitalized to support growth and strategic initiatives [53][56] Question: How is the company positioned in the credit market? - Demand for credit remains robust, with strong inflows into well-positioned products, despite some market volatility [77] Question: What is the outlook for wealth flows and product roadmap? - The company expects continued growth in the wealth channel, driven by new product launches and strong early reception [80]

Financial Data and Key Metrics Changes - In 2025, the company raised $112 billion of capital, reflecting strong demand from various investor segments [5] - Fee-bearing capital increased by 12% year-over-year to over $600 billion [6] - Fee-related earnings reached a record $3 billion, up 22% year-over-year, while distributable earnings were $2.7 billion, an increase of 14% from the prior year [6][24] - In Q4 2025, fee-related earnings were up 28% year-over-year to $867 million, with margins at 61% for the quarter [23][24] Business Line Data and Key Metrics Changes - The renewable power segment saw significant investments, including acquisitions in clean power assets and a US renewables platform [13] - The private equity business raised $1.6 billion, including $900 million for a special situation strategy [27] - Infrastructure raised $7 billion, including $5 billion for the AI infrastructure fund, marking a strong fundraising quarter [26][27] Market Data and Key Metrics Changes - The company noted a constructive market environment entering 2026, with stabilized interest rates and increased transaction activity [7] - There is a growing demand for real assets that generate stable cash flows, particularly in the context of inflation protection [8][9] Company Strategy and Development Direction - The company aims to double its business by 2030 and achieve a 15% annualized earnings growth [9] - A significant focus is on expanding access to private assets for individual investors through retirement and long-duration savings vehicles [8] - The company is well-positioned to capture opportunities in AI infrastructure, with a $100 billion global AI infrastructure program [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth outlook for 2026, expecting it to be at or above long-term targets due to strong fundraising momentum and a robust pipeline of opportunities [23][41] - The company is prepared for a meaningful expansion of its asset management mandate and anticipates strong earnings growth driven by recent acquisitions [17][31] Other Important Information - The board of directors increased the quarterly dividend by 15% to $0.50025 per share, payable on March 31, 2026 [32] - The company announced a leadership transition, with Conor Teskey appointed as CEO, reflecting a long-term succession plan [10] Q&A Session Summary Question: Is secondaries a strategically important area for the company? - The company tracks the secondaries market closely and sees it as a potential area for future growth, but will be selective in pursuing opportunities [34][35] Question: Can you elaborate on the growth expectations for 2026? - The company expects strong growth in 2026, with initiatives like the acquisition of Oaktree contributing to FRE growth, and a favorable market environment supporting increased deal activity [41] Question: What is the company's exposure to AI-driven disruption? - The company has minimal exposure to software businesses and focuses on long-term contracted real assets, positioning itself to benefit from increased AI penetration [44][46] Question: How is the company managing liquidity and uncalled commitments? - The company maintains over $3 billion in liquidity and views its uncalled capital of approximately $130 billion as a critical component for future growth [49][53] Question: What is the outlook for credit within the portfolio? - Demand for credit remains robust, with strong inflows into well-positioned products, despite some market concerns [72]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The margin for the quarter was 58%, consistent with the prior year, and up 1% over the last 12 months [26][27] Business Line Data and Key Metrics Changes - Infrastructure and renewable power raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][20] - Real estate business saw approximately $23 billion in property sales, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [7][8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion in new nuclear power reactors positions the company at the forefront of clean energy initiatives [18] - The company aims to double its business by 2030, with plans to expand product offerings and diversify its investor base [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing, and client service capabilities, enhancing overall value [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Corporate direct lending outlook - Management remains cautious about direct lending due to competition but sees strong opportunities in credit related to real assets and infrastructure [60][61] Question: Private equity fund outlook amidst market backdrop - The company is optimistic about its private equity fund due to its focus on essential assets and consistent performance across market cycles [72][75] Question: Broadening the client base for fundraising - The company has dedicated teams targeting small and medium-sized institutions, family offices, and insurance institutions, leading to significant growth [79][80]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion [7][24] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][75] - The real estate business sold approximately $23 billion of properties, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company plans to double its business by 2030, with fee-related earnings reaching $5.8 billion and fee-bearing capital reaching $1.2 trillion [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing capabilities, and enhanced client service [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Private equity outlook amidst market backdrop - The private equity business is expected to perform well due to its focus on essential assets and operational improvement, differentiating it from peers [73][75]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion, marking the highest pace of organic fundraising ever [6][27] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The company is launching an AI Infrastructure Fund, anticipating AI-related infrastructure investments to exceed $7 trillion over the next decade [13] - In the private equity business, the company launched its seventh vintage of its flagship strategy, focusing on essential service businesses [18][19] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest level since 2021 [6][7] - The company noted improving transaction conditions and a resilient global economy despite trade uncertainties [6][7] Company Strategy and Development Direction - The company aims to double its business by 2030, with plans to expand product offerings and diversify its investor base [30][31] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company is focused on capturing opportunities in AI infrastructure, energy transition, and essential real assets, aligning with global trends of digitalization, decarbonization, and deglobalization [23][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong fundraising year for 2026, expecting to exceed 2025 levels [34][35] - The company anticipates continued growth in fee-related earnings driven by acquisitions and new fundraising initiatives [36] - Management highlighted a solid balance sheet and a strong liquidity position, with $2.6 billion in liquidity at quarter-end [31][32] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The company is actively monetizing stabilized assets, selling approximately $23 billion of properties over the past 12 months [20][22] Q&A Session Summary Question: Fundraising momentum into 2026 - Management expects fundraising in 2026 to exceed 2025 levels, driven by infrastructure and private equity flagships [34][35] Question: Credit business fee rates - The elevated fee rate in the credit business was driven by a mix shift and one-off transaction fees, with a positive trend expected [37][39] Question: Oaktree acquisition benefits - The acquisition of Oaktree will unlock operational synergies, enhance marketing capabilities, and improve client service [42][44] Question: Retail market momentum - The company is seeing robust momentum in the retail market, with new product launches expected to drive growth [45][46] Question: Corporate direct lending outlook - Management noted that while competition in corporate lending is intensifying, private credit remains a significant and growing component of global finance [49][52] Question: Private equity fundraising outlook - The company is optimistic about raising its largest private equity fund ever, focusing on essential assets that generate consistent results [56][57]