Brookfield consistently invests in assets forming the "backbone of the global economy." However, the definition of these assets changes with technology. About 70% of their current investments, like data centers and solar farms, are in asset classes that were not investable 15-20 years ago.
Working in a different office from a manager creates a forcing function for taking initiative. This autonomy, born from necessity due to distance and time zones, leads to a higher-than-expected success rate, building confidence and career momentum far faster than with direct oversight.
Of the deals Brookfield actively pursues, the most common reasons for walking away are a flawed revenue model or an unreliable counterparty, or when the development risk isn't justified by the potential return. This highlights a disciplined focus on downside protection and predictable cash flows.
When hiring, Brookfield seeks people who are "nerdy" in their intellectual curiosity. The firm values individuals intrinsically motivated to dissect and solve complex problems that others have failed to crack, prioritizing this trait over any specific background or stereotype.
A reputation for a strong work ethic often stems less from individual output, like building models, and more from being consistently available to support teammates. Making time for others' questions and ideas, even after hours, is a highly valued and visible form of contribution.
Brookfield's model uses local, autonomous teams for sourcing and operations, fostering deep market knowledge. However, all capital deployment decisions are made by a small, central group. This structure provides a global perspective, allowing capital to flow to the best risk-adjusted opportunities worldwide.
Brookfield’s non-consensus investment in Westinghouse focused entirely on the downside, ensuring a good return through operational improvements they could control. The subsequent revitalization of the nuclear sector was a massive, asymmetric upside they hoped for but didn't need for the deal to succeed.
Brookfield's de-risking strategy focuses on eliminating market variables they can't control. They embrace execution and operational risk, where they have an edge, but work to structure deals that neutralize market risks like interest rate or commodity price fluctuations from the outset.
Brookfield prioritizes liquidity, believing it's overvalued in good times and incredibly undervalued in bad times. Maintaining excess capital provides a crucial advantage, allowing them to weather downturns and seize opportunities when others are capital-constrained, which has been a key differentiator across cycles.
Instead of a top-down AI strategy, Brookfield encourages its 500 portfolio companies to experiment independently. The key is a structured process for sharing all outcomes. A successful application in one business can be rapidly deployed elsewhere, while failures prevent 499 other companies from making the same mistake.