Brookfield Corporation Cum Red Pfd Registered A Series 2

Brookfield reported second-quarter 2026 fee-related earnings of $808 million, up 20% year over year, or $0.50 per share. Distributable earnings were $707 million, up 15% year over year, or $0.44 per share. Fee-bearing capital reached $672 billion, up 19% over the last 12 months, and fundraising was a record $77 billion in the quarter. Reported margins were 57% for the quarter and 58% over the last 12 months. Year-to-date fundraising was $98 billion and fundraising over the last 12 months was $163 billion. On the balance sheet, Brookfield issued $1 billion of senior secured notes in the quarter and ended with $3.1 billion of corporate liquidity. It also repurchased $200 million of stock in the quarter and nearly $575 million year to date. Guidance-wise, management said 2026 should be a record year and expects to far exceed prior fundraising highs; the remainder of the year is expected to be roughly balanced across flagships, complementary equity strategies, debt strategies, and insurance inflows. Management also said 2027 should be very strong, with final closes for private equity and infrastructure flagships and the launches of real estate and credit flagship funds, though not necessarily as large as 2026.

Connor Teskey said Brookfield is entering the second half of the year with exceptional momentum, limited exposure to areas under pressure, and meaningful exposure to where capital is flowing. He emphasized three growth areas: real assets, credit after the Oaktree acquisition, and AI infrastructure, which he described as one of the fastest-growing parts of the business. His tone was notably confident, repeatedly saying Brookfield is positioned not just to navigate the environment but to outperform through it.

Hadley Marshall highlighted the quarter’s financial strength: FRE of $808 million, DE of $707 million, and margins of 57% in the quarter and 58% over the last 12 months. She said margins will step down next quarter because of the Oaktree acquisition and a new partner manager presentation, but framed those changes as improving transparency. On capital allocation, she said Brookfield repurchased $200 million of stock in the quarter and nearly $575 million year to date, while still maintaining flexibility with $3.1 billion of corporate liquidity after issuing $1 billion of senior secured notes and completing the Oaktree deal.

Analysts focused on the durability of fundraising, the depth of credit capital for AI infrastructure, and how Oaktree and AI could translate into fee growth. Management said the rest of 2026 should still produce very significant fundraising, with activity balanced across four channels, and that credit markets remain robust enough to support AI and infrastructure financing. On AI, management said demand is strong despite competition, that Brookfield’s edge is energy, digital infrastructure and partnerships, and that compute and power constraints make its integrated model attractive. On Oaktree, management said the main upside is revenue growth through Brookfield’s distribution, product development and multi-asset platforms.