Latest news with #BruceFlatt
Business Times
a day ago
- Business
- Business Times
Private assets giant Brookfield expects alternative investments to replace public markets in 25 years
[SINGAPORE] Bruce Flatt, the billionaire chief executive officer of Toronto-based Brookfield, is understandably bullish on the prospects of alternative investments. The Canadian investment giant has, after all, amassed more than US$1 trillion in assets under management (AUM), and is one of the world's largest managers of alternative assets, also commonly known as private markets. Flatt foresees that, in 25 years, more retail investors would be channelling their funds to private assets, and the asset class would then no longer be billed as 'alternative'. The 59-year-old, who was in Singapore recently, told The Business Times: 'Fifty per cent of most individuals' retail accounts will have private investments in them. And this is a wholesale change of retirement savings accounts around the world ... so owning private businesses should be called 'mainstream' over the next 25 years.' When that happens, fixed income and equities would become known as alternative assets, he said. Recalling when he first pitched private markets to institutional investors 25 years ago, he said he had described the asset class as nascent. It has since then become mainstream for deep-pocketed investors such as GIC and Temasek Holdings. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Private markets are growing in popularity, as more countries are allowing retail investors to dabble in the asset class, potentially unlocking additional billions worth of funds. Singapore's central bank is assessing feedback to its proposal, made in late March, to broaden retail investors' access to private markets. Institutional investors such as pension funds, insurance companies and sovereign wealth funds have also entered the fray, allocating more capital to private markets, which have been shown to outperform public-market assets in the long term. More funds flowing into private markets, coupled with the trend of falling initial public offerings on world exchanges, have led to bullish growth forecasts for alternative assets. One of the most bullish is from Bain; it predicts private markets growing at more than twice the rate of public markets, with AUM hitting as high as US$65 trillion in 2032. Singapore expansion Even then, the size of private markets pales in comparison with that of public ones. Data provider Ocorian noted that the total AUM in global public markets stood at US$230 trillion in 2024, compared to the US$12.7 trillion in private assets. Flatt is confident that Brookfield will capture a sizeable chunk of the business out of Singapore. Its office in the city-state is 'a (regional) hub servicing clients and looking after institutional, retail and individual investors – it's a very important city for us', he said, adding that Brookfield sources about a third of its capital for its overall business out of the Asia-Pacific. Flatt said about half the team works on Singapore deals, and the rest are focused on the Asia-Pacific, where Brookfield's AUM is US$146 billion, about 13.5 per cent of its total. The company does not break down AUM by countries. Singapore's AUM is small, but the Brookfield team working on it has shot up from four in 2014, when its office first opened in the Republic, to more than 40 today. To accommodate further expansion, Brookfield is moving to a bigger office in CapitaGreen, a 40-storey Grade-A office tower in the central business district, this month. Together with its subsidiary Oaktree Capital Management, Brookfield will occupy a floor. The extra space will enable the firm and Oaktree to grow to more than 100 staff in the next three to five years. Despite having been in Singapore for more than 10 years, Brookfield sealed its first transaction in the country only last month. It bought three industrial properties from Mapletree Industrial Trust for S$535.3 million, paying a 2.6 per cent premium over their combined independent valuation. Why did Brookfield take so long? Flatt said that as a value investor, Brookfield assesses the current investment environment to be 'much more agreeable' than in 2014, when a lot of capital was chasing assets in the market. In addition, 'it always takes us a long time to get people in place and to be comfortable investing' from when Brookfield first built a hub in Singapore. Eyeing more deals in Singapore With a decade-long presence and the Mapletree transaction, he is confident of a higher number of transactions in the next 10 to 20 years. 'We're a lot more experienced, we have our relationships here, we know all the businesses and companies, institutions, and therefore the future of the business should be much more substantial because of that.' Referring to Brookfield's key focus on real estate, infrastructure, renewable energy, industrial, private equity and private credit, the billionaire chief said 'all the above are open for business' when the firm scours for deals in Singapore. Flatt started his career in Brascan, Brookfield's predecessor, at age 25 back in 1990, and worked his way up to the C-suite in 2002. Since then, he has been credited with expanding Brookfield's presence to more than 30 countries. And with the 2019 acquisition of a majority stake in Oaktree, he also helped propel Brookfield into the ranks of the world's top alternative-asset managers. His value-driven investment thesis, long tenure as CEO, ownership of Brookfield and frugal habits – he takes the subway to work – have led to some observers describing him as Canada's Warren Buffett. Together with a group of partners, he owns 20 per cent of Brookfield. His net worth was US$6.2 billion as at Jun 8, going by Forbes' estimates. That is tied closely to Brookfield's share price, which has jumped 108 per cent in the past five years, in a trajectory that has been largely in line with the company's income growth. In its first quarter ended Mar 31, Brookfield's distributable earnings before gains on asset sales rose 30 per cent year on year to US$1.3 billion, as momentum across its core business remained strong. The first-quarter report follows a record-breaking year in 2024, when distributable earnings rose 15 per cent to hit US$4.9 billion. Brookfield said it uses distributable earnings before realisation because the metric shows income available to be distributed to common shareholders or to be re-invested into the business.
Globe and Mail
4 days ago
- Business
- Globe and Mail
The unflappable calm of Bruce Flatt
Underneath the trade noise, Mr. Flatt believes a retooling of the world is rapidly unfolding – and Brookfield is ready to capitalize James BradshawInstitutional Investing Reporter Photography by Dina Litovsky New york The Globe and Mail Bruce Flatt at the Brookfield Asset Management headquarters in New York City in March. The CEO is helming the US$1-trillion asset management behemoth through a time of market turmoil and trade uncertainty. to view this content.
Bloomberg
06-05-2025
- Business
- Bloomberg
Brookfield to Tap $119 Billion War Chest to Exploit Market Chaos
Brookfield Asset Management said it plans to take advantage of the recent volatility in global markets by deploying some of its $119 billion of uncalled capital to pick up high-quality assets. 'We are well-positioned and fully intend to capitalize opportunistically on market dislocations,' Chief Executive Officer Bruce Flatt and President Connor Teskey said in a letter to investors Tuesday, when Brookfield reported first-quarter results.
Yahoo
18-04-2025
- Business
- Yahoo
Is First Solar, Inc. (FSLR) the Best Renewable Energy Stock to Buy in 2025?
We recently published a list of . In this article, we are going to take a look at where First Solar, Inc. (NASDAQ:FSLR) stands against other best renewable energy stocks to buy in 2025. Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead. READ ALSO: 10 Best Clean Energy Stocks to Buy According to Billionaires President Trump's focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth. In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025. 'Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,' Bruce Flatt, Brookfield's chief executive, told Wall Street analysts. According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries. We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A solar panel farm with an orange sky illuminating the vast landscape. No. of Hedge Fund Holders: 65 First Solar, Inc. (NASDAQ:FSLR) is a leading manufacturer of thin-film solar modules. The company's solar systems are mainly designed for utility-scale solar projects. The company uses advanced photovoltaic technology that offers high energy efficiency and top-notch durability. The company sells solar modules, develops solar power plants, and makes revenues from the provision of operations and maintenance services as well. Being a U.S. company, First Solar, Inc. (NASDAQ:FSLR) relies on domestic manufacturing, which strengthens its competitive edge during this tariff war with China. Moreover, the company is planning to increase its global nameplate manufacturing capacity to more than 25 GW by 2026. First Solar is also constructing a $1.1 billion manufacturing facility in Louisiana to support its production capacity. All-in-all, First Solar, Inc. (NASDAQ:FSLR) remains intact and strong for long-term growth. Overall, FSLR ranks 5th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Duke Energy Corporation (DUK): Among the Best Renewable Energy Stocks to Buy in 2025
We recently published a list of . In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other best renewable energy stocks to buy in 2025. Governments are focused on clean energy worldwide. In 2024, a record 30 GW of utility-scale solar power to the U.S. grid was produced, accounting for almost 61% of capacity additions last year. The expansion of green energy holds much promise for clean energy stocks in 2025 and ahead. READ ALSO: 10 Best Clean Energy Stocks to Buy According to Billionaires President Trump's focus on domestic energy production is expected to boost local production. Solar and storage energy, which will account for 84% of new grid capacity in 2024, are major sources of realizing this vision. According to the U.S. Energy Information and Administration (EIA), around 63 GW of new utility-scale electric generating capacity is expected to be added to the U.S. power grid in 2025. This will mark a 30% growth from 2024. Solar and battery storage combined account for 81% of the expected total capacity additions, with solar driving 50% of the growth. In 2025, the buildout of big solar and battery plants is estimated to reach an all-time high. The wind projects will also add to the new power capacity in renewable and battery energy sources, which are expected to reach 93%. EIA expects 7.7 GW of wind energy capacity to be added to the U.S. grid in 2025. 'Renewables will be the biggest beneficiary of growing electricity demand because they are the cheapest option, and [electricity buyers] will always absorb as much of the cheapest source of power before turning to more expensive forms of power,' Bruce Flatt, Brookfield's chief executive, told Wall Street analysts. According to IEA, renewable energy consumption in the power, transport, and heat sectors is expected to rise by over 60% from 2024 to 2030. This reflects the share of renewables in final energy consumption to reach almost 20% by 2030. The growing electricity demand will also drive the production of renewable energy. Electricity generation from clean sources makes up almost three-quarters of the overall growth, driven by policy changes in more than 130 countries. We used the Finviz screener and renewable energy ETFs to shortlist renewable energy companies with a market capitalization of more than $500 million. We then looked for renewable stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 12 best renewable energy stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them. Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Aerial view of a power plant near a lake lit up at night, showing off the company's expansive electricity generation capabilities. No. of Hedge Fund Holders: 62 Duke Energy Corporation (NYSE:DUK) is one of the largest power companies in the U.S. The company serves through two major segments, including electricity and gas. Duke currently has over 11,900 MW of renewable generating capacity, which is expected to reach 30,000 MW by 2035. The company remains focused on net-zero targets and estimates renewables to be its biggest generation source by 2050. It is heavily investing in wind, solar, and battery storage to upgrade its energy sources. Duke Energy Corporation (NYSE:DUK) has upgraded its five-year capital expenditure plan by 13.7% to $83 billion. This plan is set to accommodate the rising demand due to population growth and the expansion of data centers. Recently, Morgan Stanley analyst Stephen Byrd increased the price target on DUK shares from $123 to $128, maintaining an Equal Weight rating on the stock. The analyst is bullish on diversified utilities and independent power producers. The strong energy demand from data centers and efforts to defend renewables will be key for companies like Duke Energy. Overall, DUK ranks 6th on our list of best renewable energy stocks to buy in 2025. While we acknowledge the potential of DUK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than DUK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
