Investment Q&A

There have been some issues in private equity and a fraud in one instance at one company. However, we not think this is endemic of the sector. BN/BAM have a massive amount of capital available, and if anything any sector weakness will serve them well for new investments. They also have size and diversity on their side. No one investment is overly material to the companies, and with their partners, individual risk is reduced even further on some deals. For example the group had some real estate deals go bankrupt last year and it barely impacted them at all. Investors are scared, though, and the sell off looks more sector/market related than anything specific. BN is still up 10% on the year. Sentiment is very hard to predict, but we would remain very comfortable buying either of these.