VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, January 7, 2026
Brookfield Corporation
BN · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Brookfield Corporation is a global investment firm organized around Asset Management, Wealth Solutions (insurance/retirement), and operating businesses spanning renewable power, infrastructure, private equity, and real estate. Its core moat is a scale-and-ecosystem model: a large, predominantly long-dated/perpetual fee-bearing capital base and a broad operating footprint that supports sourcing and execution. Many operating assets are long-lived real assets with regulated or long-term contracted (often inflation-linked) cash flows. Wealth Solutions adds a long-duration insurance capital base that Brookfield aims to invest using its broader real-asset capabilities; key risks are fee pressure/fundraising cyclicality, regulation, and asset valuation sensitivity to rates and demand.
Primary segment
Asset Management
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
6 segments · 8 tags
Updated 2026-01-05
Segments
Asset Management
Alternative asset management (private markets: infrastructure, renewables, private equity, real estate, credit)
Revenue
—
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Wealth Solutions (Insurance)
Insurance and retirement solutions (annuities, pension risk transfer, property & casualty, life)
Revenue
—
Structure
Competitive
Pricing
weak
Share
—
Peers
Renewable Power and Transition
Renewable power generation and energy transition assets (hydro, wind, utility-scale solar, distributed energy)
Revenue
—
Structure
Competitive
Pricing
moderate
Share
—
Peers
Infrastructure
Core infrastructure ownership and operations (utilities, transport, midstream, data infrastructure)
Revenue
—
Structure
Oligopoly
Pricing
strong
Share
—
Peers
Private Equity (Operating Businesses)
Control private equity / operating businesses (business services and industrials)
Revenue
—
Structure
Competitive
Pricing
moderate
Share
—
Peers
Real Estate
Commercial real estate ownership, operations, and development (office, retail, hotels, residential)
Revenue
—
Structure
Competitive
Pricing
moderate
Share
—
Peers
Moat Claims
Asset Management
Alternative asset management (private markets: infrastructure, renewables, private equity, real estate, credit)
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Management fee streams are largely contractual: long-term private fund commitments are typically ~10 years, and the fee-bearing capital base is predominantly long-dated/perpetual, improving revenue predictability.
Erosion risks
- Fee compression from LP bargaining power
- Fundraising drawdowns in risk-off cycles
- Regulatory/LP scrutiny on fees and conflicts
Leading indicators
- Fee-bearing capital growth
- Net fundraising (subscriptions minus redemptions)
- Fee-related earnings trend
Counterarguments
- Large peers offer similar products and global coverage; differentiation can narrow
- Fee streams are resilient but still depend on fundraising and performance over time
Ecosystem Complements
Network
Ecosystem Complements
Strength
Durability
Confidence
Evidence
Brookfield combines a large investment team with a large global operating footprint, supporting sourcing, underwriting and post-acquisition value creation (proprietary deal flow + operating expertise).
Erosion risks
- Key-person risk in investment teams
- Conflicts of interest perception between GP/LP and principal capital
- Integration complexity across many strategies
Leading indicators
- Share of investments sourced off-market
- Fund performance vs benchmarks/peer quartiles
- Retention of senior investment professionals
Counterarguments
- Other mega-managers also operate multi-strategy platforms; sourcing advantages may not be durable
- Scaling can add bureaucracy that offsets claimed synergies
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Scale and longstanding track record support institutional trust (critical in alternatives where mandates are won through multi-year diligence and performance history).
Erosion risks
- Underperformance in flagship strategies
- Reputational damage from fund losses or governance issues
- Competition for talent impacting results
Leading indicators
- Flagship fund fundraising velocity
- Client retention and re-ups
- Consultant/LP due diligence outcomes
Counterarguments
- Brand helps, but allocator decisions are performance-driven and can shift quickly
- AUM scale can be a disadvantage if returns dilute
Wealth Solutions (Insurance)
Insurance and retirement solutions (annuities, pension risk transfer, property & casualty, life)
Float Prepayment
Financial
Float Prepayment
Strength
Durability
Confidence
Evidence
Insurance liabilities provide a long-duration capital base that can be invested; value creation depends on disciplined asset-liability management and investment returns relative to liability costs.
Erosion risks
- Credit losses and downgrade cycles
- Regulatory capital requirement changes
- Interest-rate volatility affecting spreads and policyholder behavior
Leading indicators
- Insurance assets growth
- Investment portfolio credit quality and defaults
- Rating agency outlook/actions
Counterarguments
- Insurance is structurally competitive; float alone is not a moat without superior underwriting/investing
- Higher-yield strategies can increase risk (liquidity/credit)
Cost Of Capital Advantage
Financial
Cost Of Capital Advantage
Strength
Durability
Confidence
Evidence
Brookfield positions the insurance portfolio to access real-asset and private investment opportunities, aiming to enhance risk-adjusted returns versus more traditional insurer portfolios.
Erosion risks
- Competition for alternative assets compressing yields
- Asset-liability mismatch and liquidity constraints
- Regulatory limits on asset classes/allocations
Leading indicators
- Portfolio yield vs liability crediting rates
- Liquidity metrics and stress tests
- Allocation to private/real assets and realized losses
Counterarguments
- Apollo/Athene and KKR/Global Atlantic pursue similar playbooks; advantage may be transient
- Incremental yield can come with tail risk that shows up in stress periods
Renewable Power and Transition
Renewable power generation and energy transition assets (hydro, wind, utility-scale solar, distributed energy)
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Cash flows are supported by contracted generation and long-dated contracts with inflation escalation, reducing exposure to spot power price volatility.
Erosion risks
- Contract renegotiation/policy risk in some jurisdictions
- Merchant exposure increasing as contracts roll off
- Counterparty credit risk in PPAs
Leading indicators
- Weighted-average remaining contract life
- Share of generation contracted vs merchant
- Realized pricing vs inflation and spot markets
Counterarguments
- Contracted cash flows help stability but do not guarantee superior returns if acquisition multiples rise
- Large utilities and IPPs also secure long-term PPAs at scale
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
Operating and development scale across hydro, wind, and solar supports execution (construction, O&M, procurement) and pipeline advantage versus smaller players.
Erosion risks
- Technology and supply-chain shifts (module/turbine pricing)
- Project execution risk and permitting delays
- Climate variability (hydrology/wind)
Leading indicators
- MW commissioned / under construction
- Project-level IRRs vs targets
- Availability/capacity factor trends
Counterarguments
- Scale is shared with other global renewable majors; competitive advantage may come down to project-level discipline
- Rapid technology change can erode incumbency advantages
Infrastructure
Core infrastructure ownership and operations (utilities, transport, midstream, data infrastructure)
Permits Rights Of Way
Legal
Permits Rights Of Way
Strength
Durability
Confidence
Evidence
Many infrastructure assets require hard-to-replicate rights-of-way and operate under regulated or concession regimes, limiting new entrants and supporting stable returns.
Erosion risks
- Adverse regulatory decisions or political intervention
- Concession renegotiations
- Technological substitution in specific sub-sectors
Leading indicators
- Regulatory rate case outcomes
- Concession renewal terms
- Political risk indicators in key jurisdictions
Counterarguments
- Some infrastructure cash flows are volume-sensitive and exposed to demand downturns
- Acquisition competition can compress returns even for 'moat' assets
Physical Network Density
Supply
Physical Network Density
Strength
Durability
Confidence
Evidence
Large physical networks (pipelines, towers, fiber, rail, terminals) create high replacement cost and operational advantages, especially in local/regional markets.
Erosion risks
- New technologies (e.g., satellite) reducing demand for certain networks
- Overbuild in fiber/data centers in some markets
- Rising maintenance capex
Leading indicators
- Network utilization/tenancy
- New build vs churn in customers
- Maintenance capex as % of revenue
Counterarguments
- Some sub-sectors (data centers/fiber) can see periods of overbuild that reduce pricing
- Network effects vary widely by asset type and geography
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
A meaningful portion of infrastructure revenues are supported by long-term, often inflation-linked contracts (or regulated frameworks with escalators).
Erosion risks
- Contract roll-offs and renewal at lower rates
- Customer bankruptcies in downturns
- Regulatory restrictions on escalators
Leading indicators
- Weighted-average remaining contract term
- Inflation escalator capture vs CPI
- Renewal spreads
Counterarguments
- Not all assets are fully contracted; some have commodity/volume exposure
- Inflation linkage helps nominal growth but doesn't ensure real returns if costs rise faster
Private Equity (Operating Businesses)
Control private equity / operating businesses (business services and industrials)
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Brookfield emphasizes operational improvement and turnaround capability as a repeatable value creation tool across its operating businesses and portfolio companies.
Erosion risks
- Execution risk on turnarounds and integrations
- Leverage and refinancing risk in downturns
- Sector-specific disruption in portfolio companies
Leading indicators
- Same-store operating FFO growth
- Portfolio company EBITDA margins
- Debt maturity and refinancing spreads
Counterarguments
- Many large PE firms claim operational playbooks; edge may be hard to sustain
- Returns can be driven more by multiple cycles than operations
Ecosystem Complements
Network
Ecosystem Complements
Strength
Durability
Confidence
Evidence
Global sourcing networks and reputation as a repeat buyer can generate proprietary or advantaged deal flow for take-privates and complex transactions.
Erosion risks
- Increased competition from strategic buyers and other sponsors
- Reputation damage reducing willingness of sellers to transact
- Higher cost of capital reducing deal activity
Leading indicators
- Share of deals sourced bilaterally
- Transaction pipeline and close rate
- Average entry valuation multiples
Counterarguments
- Most large sponsors have global origination teams; 'proprietary' deal flow can be overstated
- In hot markets, auctions dominate regardless of reputation
Real Estate
Commercial real estate ownership, operations, and development (office, retail, hotels, residential)
Geographic Natural
Supply
Geographic Natural
Strength
Durability
Confidence
Evidence
Prime real estate in global gateway cities is scarce; trophy assets and irreplaceable malls can sustain long-term demand and pricing relative to commodity locations.
Erosion risks
- Structural demand shifts (e.g., remote/hybrid work) impacting offices
- Higher rates increasing cap rates and refinancing costs
- Retail traffic migration and tenant bankruptcies
Leading indicators
- Occupancy and renewal spreads
- Same-store NOI growth
- Refinancing spreads and loan-to-value
Counterarguments
- Even trophy assets can face valuation drawdowns in rate shocks
- Location helps, but leasing markets can weaken materially in recessions
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Value-add execution (leasing, redevelopment, operational uplift) is central to the transitional and development portfolio, with capital recycled through monetizations.
Erosion risks
- Execution and development cost overruns
- Capital market freezes limiting exits/refinancings
- Local oversupply in some property types
Leading indicators
- Leasing velocity and tenant demand
- Development pipeline returns vs budget
- Disposition volumes and cap rates
Counterarguments
- Operational edge can be competed away by other sophisticated owners
- Real estate returns can be dominated by macro rates and liquidity cycles
Evidence
Diversified and long-term base management fees on capital that is typically committed for 10 years with two one-year extension options.
Direct support for long-duration contractual fee arrangements in the core private fund business.
Fee-bearing capital ... increased ... to $539 billion in 2024; of this, 87% is long-dated or perpetual in nature, providing resiliency and predictability to our revenues.
High share of long-dated/perpetual fee-bearing capital increases durability of management fee revenues.
The collaboration between the 2,500+ investment and asset management professionals ... and approximately 250,000 operating employees ... provides Brookfield with ... unique access to proprietary investment opportunities.
Explicit claim of ecosystem synergy between investment platform and operating businesses, supporting differentiated sourcing and execution.
Our asset management business is a leading global alternative asset manager, with over $1 trillion of assets under management ... as at December 31, 2024 ....
AUM scale supports brand/credibility with institutional allocators and distribution partners.
The business seeks to match its liabilities with a portfolio of high-quality investments in order to generate attractive, risk-adjusted returns.
Describes the core insurance economic engine (liabilities funded and invested to earn a spread).
Showing 5 of 18 sources.
Risks & Indicators
Erosion risks
- Fee compression from LP bargaining power
- Fundraising drawdowns in risk-off cycles
- Regulatory/LP scrutiny on fees and conflicts
- Key-person risk in investment teams
- Conflicts of interest perception between GP/LP and principal capital
- Integration complexity across many strategies
Leading indicators
- Fee-bearing capital growth
- Net fundraising (subscriptions minus redemptions)
- Fee-related earnings trend
- Gross/realized carried interest
- Share of investments sourced off-market
- Fund performance vs benchmarks/peer quartiles
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.