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Brookfield Corporation Class A Limited Voting Shares (BN $60.83)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $64.53)
Q: In response to some questions about Brookfield Corp/BAM sharp drop in Tuesday trading, I could add the following.
As per CNBC, there was a report today, related to perceived impact of AI on software Companies, which could seriously result in their profitability/business and eventually valuations ( already seen in publicly listed most software stocks). Most of the Asset Managers, with large books of private credit, having a fair portion of this credit related to start ups or early stage software companies, fell today, due to the fear of resulting losses and declining private valuation of such borrowers.
Most of the big asset managers were painted with the same brush, today, as it was not immediately known or disclosed, as to, which ones have significant exposures to such clients.
It might be helpful if you are able provide some more information about such exposure to the Brookfield group.
Thank You
As per CNBC, there was a report today, related to perceived impact of AI on software Companies, which could seriously result in their profitability/business and eventually valuations ( already seen in publicly listed most software stocks). Most of the Asset Managers, with large books of private credit, having a fair portion of this credit related to start ups or early stage software companies, fell today, due to the fear of resulting losses and declining private valuation of such borrowers.
Most of the big asset managers were painted with the same brush, today, as it was not immediately known or disclosed, as to, which ones have significant exposures to such clients.
It might be helpful if you are able provide some more information about such exposure to the Brookfield group.
Thank You
5i Research Answer:
Brookfield has not disclosed specific software exposure but we would note the following: most of its investments so far have been infrastructure related to the AI space (data centres). It no doubt has some loans to start ups but has not revealed names or exposure. But we did a word search on all of its press releases and 'software' is barely mentioned at all, and when it was usually related to datacentre actvity.