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Brookfield to Target $25 Billion for Biggest Infrastructure Fund

A pedestrian walks across footpath signage for the Brookfield Place Sydney office building, owned and home to the Asia-Pacific headquarters of Brookfields Asset Management Inc., in Sydney, Australia, on Thursday, June 17, 2021. Canadian investment giant Brookfield is bucking the trend when it comes to hybrid work in a post-pandemic world, 90% of staff have been coming in to the headquarters office of Covid-safe Sydney for close to a year, according to Managing Partner Sophi Fallman.

(Bloomberg) —

Brookfield Asset Management is seeking to raise $25 billion for its fifth flagship infrastructure fund, its largest on record. 

The firm has already begun marketing the fund, which may exceed the target, according to a person familiar with the matter. A spokesman for the Toronto-based Brookfield declined to comment.

Brookfield’s $20 billion fourth infrastructure fund has committed about 75% of its capital for investment, the company said in a statement earlier this month. Brookfield Infrastructure Partners, the firm’s publicly traded subsidiary, made several acquisitions in recent months, including Australia’s AusNet Services Ltd. and Inter Pipeline Ltd., which operates assets across Western Canada. 

Investors continue to pour money into infrastructure funds, lured by the promise of stable, recurring returns. Adebayo Ogunlesi’s Global Infrastructure Partners also plans to raise $25 billion for a new flagship fund, Bloomberg reported last week.

Read more: GIP Is Said to Target $25 Billion for Record Infrastructure Fund 

The amount of capital targeting the sector is forecast to grow to $1.87 trillion by 2026, up from $864 billion at the end of 2021, according to data provider Preqin. 

Brookfield Infrastructure, which oversees $112 billion of assets, is seeking to invest in utilities that can benefit as the world moves toward a carbon-free environment, and also sees opportunities in data centers, fiber optics and telecom towers.

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The firm is raising money for other strategies.

Brookfield Super-Core Infrastructure Partners, a perpetual fund that invests in low-risk assets, will grow to $10 billion from $6 billion this year, the person said. The firm also started raising money for its third infrastructure credit fund, which is expected to bring in as much as $5 billion.

Separately, Brookfield plans to deploy its own capital for an infrastructure secondaries business that eventually will be open to institutional investors, the person said.
© 2022 Bloomberg L.P.

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