Brookfield Asset Management (BN 2.00%) is "a leading global alternative asset manager." Over its 120 years, the company has developed a portfolio of real estate, infrastructure, renewable power, private equity, and credit assets. And it has done so in a way that allows investors to choose the areas to which they are exposed. Here is a quick guide that explains the options available to potential, Brookfield investors.
Brookfield Asset Management (BAM)
BAM is the main business at the top of the organizational chart. BAM is an asset manager for many private funds and serves as the general partner for its several partnerships. BAM receives management and other fees from the accounts, funds, and partnerships that it manages. Also, the company invests its own capital into its partnerships and other investments. Owners of BAM receive exposure to and returns from everything done under the Brookfield umbrella.
As mentioned above, BAM has a diverse portfolio. As a result, the company has created several partnerships that allow investors to gain specific exposure to different areas of its portfolio. These partnerships are Brookfield Property Partners (BPY), Brookfield Infrastructure Partners (BIP 2.44%), Brookfield Renewable Partners (BEP -4.68%), and Brookfield Business Partners (BBU 0.99%).
Brookfield Property Partners (BPY)
BPY is all about real estate. It "owns, operates and develops one of the largest portfolios of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage, student housing, and manufactured housing assets." Investors of BPY receive exposure across the globe. While the majority of its assets are in the United States, the company also has assets in Canada, Brazil, Europe, Asia, and Australia. BPY itself is not a REIT; however, it does have a subsidiary that is.
Brookfield Infrastructure Partners (BIP)
BIP owns and operates various infrastructure assets in different parts of the world. These include:
- Natural gas pipelines and storage in Australia and the Americas
- Electricity transmission lines in North and South America
- Rail, toll roads, and ports in multiple continents
- Telecommunications towers in Europe
- Data centers in several continents
A couple of BIP's specific holdings include a 50% stake in Natural Gas Pipeline Company of America (NGPL) and a "29% interest in AT&T's large-scale, multi-tenant data center portfolio."
Brookfield Renewable Partners (BEP)
BEP "operates one of the world's largest publicly traded renewable power platforms." The company has the capacity to generate 18,000 MW of power across multiple continents. To generate this power, it utilizes hydroelectric, wind, solar, and energy storage assets. As part of its portfolio, BEP owns a 51% stake in TerraForm Power (TERP).
Brookfield Business Partners (BBU)
BBU is the private equity partnership. It was created to serve as BAM's "primary vehicle to own and operate business services and industrial operations." It is "focused on owning and operating high-quality businesses that are either low-cost producers and/or benefit from high barriers to entry." BBU has assets across the globe in various industries such as construction, energy, and mining among others. Among its holdings are Westinghouse Electric Company, Teekay Offshore, GrafTech International (EAF 1.08%), and Healthscope Limited.
Oaktree Capital Management
In addition to these partnerships, BAM acquired a majority stake in Oaktree Capital Management in 2019. To invest in BAM's Oaktree business, one can invest in one of Oaktree's two preferred stocks, or there are Oaktree's own brand of investment opportunities: Oaktree Specialty Lending Corporation (OCSL 0.60%) and Oaktree Strategic Income Corporation (OCSI).
Brookfield has given investors many different ways to invest in its business. If they want to customize their basket of exposures, then investors can choose among the partnerships. If they want a little bit of everything, then BAM is available. Regardless of the mix, Brookfield has made it easy for investors to get just what they want.