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Brookfield Infrastructure Corporation Class A Exchangeable Subordinate Voting Shares (BIPC)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Brookfield has a complex ownership breakdown, and a stock split at the end of 2022 will help explain this. First looking at BAM versus BN. At the end of 2022, Brookfield Asset Management (previously BAM.a:TSX) spun off its asset management business creating Brookfield Corporation (BN) as we know it now. From here, Brookfield Corporation issued shares of a “newly” created asset management business, Brookfield Asset Management (BAM). This was completed through a four-for-one stock split where investors who owned one share of BN received 0.25 shares of BAM. The current differentiator between the two arms is that BN acts as holding company being a direct private equity investor in with other partners (including BAM). BAM is an asset manager that manages investments and capital from partners including BN.
BN’s current holdings breakdown across other Brookfield subsidiaries are as follows: 75% in BAM, 48% in BEP, 27% in BIP, and 64% in BBU.
BAM has multiple permanent capital vehicles including BEP, BIP, BBU, and BPG. All these capital vehicles pay management fees as well as a percentage of distributions to BAM. When comparing BAM and BN, BAM is more of an income investment while BN is seen as a growth play for investors. BN and BAM do have other investments in renewables and infrastructure other than just their subsidiaries. Investors can get indirect exposure to BEP/BIP through BN. BEP/BIP distributions flow 'up' to the parent companies and this is a direct source of cash flow to them other than management fees earned.