🚨🇨🇦 The Brookfield “scam” that almost nobody is talking about 1/ Everybody loves praising Brookfield as a Canadian success story ..$1T+ AUM, slick deals, Mark Carney ties, big pension money flowing in. But there’s a massive structural issue hiding in plain sight that analysts and the FT have been quietly flagging. It’s their closed-loop economy. 2/ Brookfield entities buy, sell, and finance assets from each other — constantly. In 2024 alone, they used $1.4 billion from their own insurance arm to buy real estate assets from other Brookfield vehicles. These deals help generate “distributable earnings” (their favorite non-GAAP profit metric) that underpin the whole valuation. Then those earnings get recycled right back into the loop. 3/ Veritas analyst Dimitry Khmelnitsky nailed it: “Brookfield is trying to create a closed loop Brookfield economy by transacting with itself.” The FT investigation (March 2025) highlighted how this circular cash flow creates opaque accounting and questions about the true quality of earnings — especially as they pivot hard into insurance to paper over lingering post-pandemic real estate losses. 4/ Add in the Raffaelli whistleblower lawsuit (May 2025). A former Brookfield VC fund manager (with Musk connections) accused the firm of: • Misleading LPs about valuations • Trying to divert capital from high-upside tech funds to cover real estate holes • Offering him a $46 million “bribe” to stay quiet and help sell the story to investors He reported it to the SEC, then got fired. Brookfield denies wrongdoing, of course. 5/ Meanwhile, Brookfield has long been Canada’s top corporate tax avoider — parking dozens of entities at Ugland House in the Cayman Islands (the address Obama once called the biggest tax scam address in the world). They’ve reportedly avoided billions in Canadian taxes while managing (or receiving) huge capital from Canadian pensions. CPPIB holds ~$1B in Brookfield shares and has committed fresh money to their funds in recent years. 6/ Remember our CPPIB India thread? ~$30B invested since 2010, but the rupee lost ~50%+ vs CAD — currency risk eating returns. Now imagine that same pension money flowing into a structure where earnings might be boosted by internal loops, insurance liabilities, and offshore vehicles. CPPIB’s mandate is simple: maximize long-term returns without undue risk for Canadian retirees. How much real alpha is left after the opacity, related-party magic, and tax structures? 7/ This isn’t some penny stock pump. It’s one of the world’s largest alternative asset managers, deeply embedded in Canadian finance and politics. The model is intentionally complex (multiple listed entities, perpetual capital, insurance roll-ups). Most coverage treats the related-party stuff as “just how alternatives work.” But when the loop gets this big, and pensions are the bagholders… questions matter. What do you think ..genius structure or sophisticated risk transfer? @TheCarneyFiles @MarcNixon24 @RealAndyLeeShow @dsimieritsch Drop thoughts below. RT if Canadian pensions deserve more transparency. 👇 #Brookfield #CPPIB #CanadianPensions #Opacity #RelatedParty