This document is the Q3 2025 Letter to Shareholders from Brookfield, detailing financial performance, strategic initiatives, and market outlook.

This document is the Q3 2025 Letter to Shareholders from Brookfield, detailing financial performance, strategic initiatives, and market outlook.

Financial Performance and Strategic Initiatives

Brookfield reported strong financial performance in Q3 2025, driven by key initiatives including the acquisition of Oaktree, a partnership with the U.S. government for $80 billion in nuclear plants, and expansion in Wealth Solutions.

The Wealth Solutions business signed its first reinsurance agreement in Japan and received approval for expansion in the U.K., targeting over $25 billion in annual annuity inflows.

Asset Management achieved $30 billion in organic fundraising, marking the strongest quarter since its listing, with significant commitments to energy transition and real estate strategies.

Capital markets remain supportive, facilitating $140 billion in debt financing year-to-date, indicating a robust outlook for real assets.

Macroeconomic Environment

The global economy shows resilience despite trade uncertainties, with healthy U.S. economic activity and corporate earnings.

The Federal Reserve's policy easing aims to support growth amid a softening labor market.

Favorable conditions for alternative investments are evident, with a 25% year-over-year increase in global M&A volumes, leading to $115 billion in deployment across Brookfield's platforms.

Annual Investor Day Highlights

Brookfield Corporation emphasized its disciplined investment approach, achieving a 19% annualized return over 30 years, and aims for 25% annual growth in distributable earnings over the next five years.

Key growth drivers include aging populations, demand for wealth products, and a recovering real estate market.

The private holdings in Wealth Solutions, real estate, and carried interests are crucial for future growth.

Brookfield Asset Management Overview

Brookfield Asset Management highlighted its diverse business model, which allows for growth across market cycles and positions it to capitalize on long-term structural changes in the economy.

The firm aims to double its asset management business within five years, targeting $1 trillion in fee-bearing capital and $6 billion in fee-related and distributable earnings.

Listed Affiliates Performance

Brookfield Infrastructure (BIP) targets 10%+ annualized growth in funds from operations (FFO) per share, focusing on the $7 trillion AI infrastructure opportunity.

Brookfield Renewable (BEP) aims for 10%+ FFO growth and 5-9% distribution growth, leveraging a significant development pipeline in renewable energy.

Brookfield Business Partners (BBU) plans to simplify its structure to enhance liquidity and trading value.

Investment Climate and Real Assets

The document discusses the unsustainable trajectory of global public debt, with U.S. debt at approximately 125% of GDP.

Policymakers face challenges in stabilizing debt burdens, with potential paths including fostering economic growth through AI and innovation, reducing fiscal spending, or managing interest rates below inflation.

This environment favors real assets, which provide inflation-linked cash flows and protect against real return erosion.

Nuclear Power Initiatives

Brookfield's ownership of Westinghouse Electric positions it to benefit from renewed interest in nuclear power, with a significant U.S. government contract for $80 billion in reactors.

Plans include advancing a 2,200-megawatt nuclear facility in South Carolina, expected to be operational by 2030, enhancing the domestic nuclear supply chain.

Private Credit Market Growth

The private credit market has evolved into a $2 trillion industry, filling the gap left by traditional banks.

Brookfield's private credit business, now nearly $350 billion in assets, leverages its real asset expertise to provide value-oriented lending solutions.

The acquisition of the remaining 26% of Oaktree will create a comprehensive credit platform integrated with real estate and infrastructure lending.

Artificial Intelligence Opportunities

AI presents significant productivity and efficiency gains, particularly in humanoid robotics, which can address workforce challenges across industries.

Brookfield's partnership with Figure aims to accelerate advancements in humanoid robotics, combining technical innovation with operational expertise.

Closing Remarks

Brookfield remains committed to investing in high-quality assets that generate solid cash returns while focusing on increasing cash flows and intrinsic value for shareholders.

The letter invites shareholders to engage with the company for suggestions or inquiries.

-----------------------------

Source

https://bam.brookfield.com/