WEBINAR
Brookfield: Sifting Through Complexities
With Dimitry Khmelnitsky and Ben Butler
------
Dimitry Khmelnitsky, Head of Accounting & Special Situations, and Benjamin Butler, Investment Analyst Utilities & Special Situations, will present their outlook for Brookfield Corp. (BN), Brookfield Asset Management Ltd. (BAM) and relevant affiliates.
Both BN and BAM are currently rated with SELL recommendations.
Agenda:
- Insurance Growth Projections: Insurance accounts for ~83% of the expected growth in BN's Distributable Earnings. We reveal why Brookfield's insurance growth targets may fall short, highlighting inconsistencies in management's guidance using their own disclosures.
- BAM Growth Drivers: Our analysis shows BAM's recent growth stems largely from related-party transactions and goalpost shifts rather than the composition of management's original guidance.
- Distributable Earnings Quality: We estimate that approximately 40% of BN's Distributable Earnings lack underlying cash flow backing, funded instead by return of capital, intercompany equity infusions, and subsidies.
- Adjusted Payout Ratios: We detail adjustments Brookfield excludes, such as cash costs and understated sustaining capex.
- Valuation Misconceptions: Contrary to bullish narratives, BN investors are not "getting" its real estate, insurance, or carried interest businesses for free - they may be fully priced in.
The time has passed since we held our live webinar in January but you may still purchase a replay.
Contact us for access to the replay
or for a subscription to our Brookfield coverage
Contact Us
Group discounts are available
Current Veritas Clients Contact Us Directly for a Replay.
Contact Us
Veritas in The Financial Times
The Financial Times published an investigative feature on the Brookfield conglomerate on March 6, 2025 (How much does Brookfield really make?) by Dan McCrum, investigative reporter, and Antoine Gara, U.S. private and institutional capital correspondent.
It quotes Dimitry extensively about circular cash flows between Brookfield entities and transparency issues.
It also covers the heightened risks of Brookfield's pivot into insurance and real estate exposure.
Key risks and more have been covered in our recent research reports and Brookfield presentations over the past two years, including the most recent one, Sifting Through the Complexities.
Dimitry Khmelnitsky
CPA, CA
Vice President, Partner
Head of Accounting & Special Situations
Dimitry is Head of the Accounting & Special Situations Group, focusing on organizations that pose a financial risk. He is also Head of Training, helping our clients analyze complex accounting issues. Prior to joining Veritas in 2006, Dimitry was at Ernst & Young in their assurance practice. Dimitry is a Chartered Professional Accountant and holds a BBA from York University's Schulich School of Business. Brendon Wood International awarded Dimitry a TopGun sell-side analyst designation for 2024-2025, as our clients rated his coverage in the top decile of world standards. According to Brendan Wood, he was the #3 ranked Analyst for Special Situations in Canada in 2020, #1 in 2019 and #3 in 2018.
Benjamin Butler
CFA, CPA
Investment Analyst
Utilities & Special Situations
Ben is an Investment Analyst in the Utilities & Special Situations. Prior to joining Veritas in 2022, he worked as an Investment Associate at CIBC Wood Gundy and in the assurance group at BDO. He graduated from Wilfrid Laurier University with a Bachelor of Arts in Economics and Accounting. While at Veritas, Ben finished his Chartered Financial Analyst designation in 2024 as well as his Chartered Professional Accountant designation in 2022.