What’s the difference between Brookfield Asset Management and Blackstone ? About $70 billion of market capitalization in the latter’s favor, for starters. Brookfield Chief Executive Bruce Flatt thinks the answer might be to break the Canadian financial group in two. While his logic is compelling, he might exchange one kind of complexity for another.
? About $70 billion of market capitalization in the latter’s favor, for starters. Brookfield Chief Executive Bruce Flatt thinks the answer might be to break the Canadian financial group in two. While his logic is compelling, he might exchange one kind of complexity for another.
Blackstone’s worth breaks down into three parts. There are the fees it makes on its clients’ money, some $4.1 billion in 2021. Investors might value those on a multiple of 25, in line with Ares Management The question is whether Flatt can have his cake and eat it. Investors put off by Brookfield’s bricks-and-mortar investments may indeed pay a higher price for shares in a Blackstone-like spinoff. But the two businesses would remain shackled together, with the parent retaining control over its offspring. Meanwhile, the holding company would effectively be a clump of stakes in other companies, some of which investors can buy themselves.
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