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  5. BAM: Briefly can you compare the pros and cons of the Brookfield and Constellation groups. [Brookfield Asset Management Ltd. Class A Limited Voting Shares]
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Q: Briefly can you compare the pros and cons of the Brookfield and Constellation groups.
Thank You
Peter
Asked by Peter on September 20, 2023
5i Research Answer:

BN invests largely in long-duration assets that have a solid competitive position such as key infrastructure assets including utility, pipelines, renewable energy plants, etc.. These assets are quite capital-intensive but generate stable cash flow to support the debt that BN usually uses to acquire the asset.

CSU focuses on acquiring vertical market software, that serves a market that is typically so small that large software players do not enter. These niche market software companies are capital-light, with strong price power and solid organic growth profiles.