This Alternative Asset Manager Looks Built for a Higher-for-Longer World

Brookfield Corporation (NYSE: BN) is a complex business with numerous moving parts, some of which are also publicly traded. That said, Brookfield Corporation itself is looking to mimic Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), as it works to become an investment-led insurance company. Its focus has long been on providing investment management services and on investing in infrastructure assets. That's almost perfect for a higher-for-longer rate environment.

What does Brookfield Corporation do?

Essentially, Brookfield Corporation has its own capital and collects capital from others. That cash is invested through Brookfield Corporation's ecosystem, which includes Brookfield Asset Management (NYSE: BAM) and a collection of publicly traded entities, such as Brookfield Renewable (NYSE: BEP) and Brookfield Infrastructure (NYSE: BIP). It is a bit complex, but think of Brookfield Corporation as the mastermind.

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That said, Brookfield has long focused on buying, selling, and operating infrastructure assets on a global scale. These types of investments are often referred to as hard assets. They tend to hold up well during periods of high inflation because they provide vital services and thus have pricing power. Think hydroelectric power plants, shipping ports, and railroads, among other things.

Brookfield Corporation is well-positioned for higher for longer

Brookfield Corporation's first quarter 2026 results highlight the fundamental strength of the business. Despite interest rates rising, Distributable earnings before realizations increased by 7% year over year. The company is so confident in its position that it bought back $1 billion of shares across Brookfield Corporation and its controlled Brookfield Asset Management business.

With inflation running high, there's concern that more interest rate increases are in the cards. Or, at the very least, that rates will hold at current levels. That's not likely to be a problem for Brookfield Corporation given its investment focus. The infrastructure assets it owns will enable it to increase the fees it charges the users of those assets. That, in turn, will increase the value of these hard asset investments, leaving anyone who invested alongside Brookfield Corporation pleased as well. Brookfield Corporation's strong first quarter is simply a sign of the company's strength and long-term opportunity.

Anywhere along the Brookfield spectrum

The truth is, there are any number of Brookfield entities you could buy. For example, if you want to focus on renewable power, then Brookfield Renewable might be the best option for you. However, if you want to own the mastermind of the entire ecosystem, then the only choice is Brookfield Corporation.

It delivered 22% compound annual distributable earnings growth over the five years through June 2025, easily beating its target of 15%. And since there's no reason to believe that a higher-for-longer rate environment will derail Brookfield Corporation's infrastructure-focused business model, there's also no reason to doubt its ability to keep delivering strong results in the future.

Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Berkshire Hathaway, Brookfield Asset Management, and Brookfield Corporation. The Motley Fool recommends Brookfield Infrastructure Partners and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.