Brookfield Asset Management closed its third global infrastructure debt fund after receiving more than $6 billion in investor commitments, according to a statement seen by Bloomberg.
Brookfield Infrastructure Debt Fund III is more than double the size of its predecessor, which raised $2.7 billion in 2020, a Brookfield spokesperson said. Over 60% of its investors are new to the so-called BID program, and Brookfield itself committed $600 million.
“In this environment, the pie is growing and the debt capital sources aren’t growing as fast so private debt is needed,” said Ian Simes, co-head of Brookfield’s infrastructure debt and structured solutions businesses.
The fund has already deployed more than 50% of its commitments, the statement said. Data and renewable assets likely will be the fund’s largest allocation, according to the spokesperson.
“Data centers have seen explosive growth in the last couple of years while renewables have been a key sector for the last seven years and continues to offer expansion opportunities,” said Hadley Peer Marshall, co-head of Brookfield’s infrastructure debt and structured solutions businesses.
The fund can invest in junior and senior debt, while the bulk of investments from the first two funds was in junior debt, Simes added.
“That’s what we expected with this fund,” he said. “We are seeing a lot more opportunities to do senior debt which reflects the dislocation in credit markets.”
In May, Brookfield provided $250 million to PosiGen, a residential solar and energy efficiency provider, for future asset growth and to expand into additional markets nationwide, according to a statement.
Brookfield has $161 billion of assets under management for its infrastructure strategy, according to its website. The firm has been fundraising this year for $20 billion to dedicate to clean energy investments, Bloomberg News previously reported.
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