Brookfield Business Corporation BBUC

Competitive advantage analysis · financial-services

Asset Management Specialized
Overall moat score
35/100
Developing

About Brookfield Business Corporation

Brookfield Business Corporation owns and operates services and industrials operations in the United States, Australia, Brazil, the United Kingdom, and internationally. The company provides cloud-based software as a service and technology solutions to dealerships and original equipment manufacturers across automotive and related industries, as well as operates private hospitals. It also offers private sanitation services, such as collection, treatment, and … Full BBUC analysis →

Competitive advantage assessment

Key strengths

  • Consistent Fee Structure Fee margin stability is solid (score 0.80).
  • Improving Margin Trajectory Margin trajectory is improving (trend score 0.71).

Key risks

  • AUM Retention Risk Revenue stickiness is low (stability score 0.19).
  • Fee Margin Pressure Fee margin quality is below peers (score 0.17).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Fee Revenue Quality

Developing
42

Where BBUC ranks in Asset Management

Brookfield Business Corporation ranks #137 of 173 scored companies in Asset Management by moat score — the top 79%. The widest moat in the group is Sound Point Meridian Capital Inc (SPMC) at 77/100.

Moat scores for companies ranked near BBUC in Asset Management
# Company Moat score Rating
133 Eagle Point Credit Company Inc. ECCC 36/100 Developing
134 53753 BMN 36/100 Developing
135 PFLT PFLT 36/100 Developing
136 Blue Owl Capital Inc. OWL 35/100 Developing
137 Brookfield Business Corporation BBUC 35/100 Developing
138 Chicago Atlantic BDC, Inc. LIEN 35/100 Developing
139 Ellington Credit Company EARN 34/100 Developing
140 Horizon Technology Finance Corp HRZN 34/100 Developing
141 Corebridge Financial Inc. CRBG 34/100 Developing

See every Asset Management & Capital Markets company ranked by moat score →

How BBUC scores on the Asset Management Specialized defenses

Fee Revenue Quality

Score 42 · 20% of the moat score

Fee revenue quality is the ability to charge above the industry's falling average and keep charging it.

Client Retention & Revenue Stickiness

Score 28 · 18% of the moat score

Assets under management leave far more easily than they arrive, and the fee leaves with them.

Compensation Discipline

Score 39 · 18% of the moat score

Compensation is the largest expense in asset management and the one that decides whether a good year ever reaches shareholders.

Capital Efficiency

Not measurable · 20% of the moat score

Asset managers are asset-light: with little capital employed, a healthy business should earn a very high return on equity, and a merely average one is a real warning.

Earnings Quality & Cash Conversion

Score 37 · 14% of the moat score

Reported profits here can be flattered by performance fees, seed-capital gains and consolidated fund accounting, none of which recur reliably.

Balance Sheet Strength

Score 13 · 10% of the moat score

Because the business needs so little capital, an asset manager carrying meaningful debt has usually borrowed to buy another manager or to fund distributions.

How each Asset Management Specialized defense is measured, in full →

Understanding BBUC's moat

What is Brookfield Business Corporation's moat score?

Brookfield Business Corporation (BBUC) scores 35 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #137 of 173 scored companies in Asset Management, the top 79%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 174 companies in Asset Management. Its strongest defense is Fee Revenue Quality (42/100) and its weakest is Balance Sheet Strength (13/100).

How does Brookfield Business Corporation compare with other Asset Management companies?

Brookfield Business Corporation ranks #137 of 173 scored companies in Asset Management by moat score. The widest moat in Asset Management is Sound Point Meridian Capital Inc (SPMC) at 77/100. The companies ranked closest are Blue Owl Capital Inc. (OWL) at 35 just above it and Chicago Atlantic BDC, Inc. (LIEN) at 35 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Asset Management Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 174 companies in Asset Management. The defenses are then weighted to produce the overall score out of 100.

Why is Brookfield Business Corporation scored with the Asset Management Specialized template?

An asset manager owns almost nothing. It charges a fee on someone else's money, pays much of that fee out in compensation, and keeps the remainder — so its economics turn on the fee rate it can defend, whether client money stays, and how much revenue survives the bonus pool. The Asset Management template scores those questions rather than the balance sheet, which in this industry is largely beside the point.

Which competitive defenses are measured for Brookfield Business Corporation?

The Asset Management Specialized template measures 6 defenses, and BBUC scores: Fee Revenue Quality (42), Client Retention & Revenue Stickiness (28), Compensation Discipline (39), Capital Efficiency (not measurable), Earnings Quality & Cash Conversion (37), Balance Sheet Strength (13). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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