BIF II in $7bn final close

The latest Brookfield infrastructure offering bested its original fundraising goal by $2bn.

Brookfield Asset Management (BAM) announced final close on Brookfield Infrastructure Fund II (BIP II) with a total offering amount of $7 billion, a press release said.

BIF II is the largest infrastructure investment fund to be raised in 2013. Alternative investment company Brookfield launched BIF II in January with a $5 billion fundraising target. By July, however, the fund had hauled in $6.23 billion, according to a regulatory filing.

BAM committed $2.8 billion in in-house capital to BIF II, “aligning its interests” with its limited partners (LPs).

A company statement claimed half of the 60 LPs in BIF II are “first time” Brookfield investors. The New York City Employees Retirement System (NYCRS), the Teacher Retirement System of Texas (TRS), the Maine Public Employees Retirement System (MainePERS) and New Mexico State Investment Council (SIC) have invested in the fund.

BIF II is focused on transportation, renewable power and energy in North and South America, Australasia and Europe.

“We see significant potential for investments in all the regions where we operate,” remarked Sam Pollack, senior managing partner and chief executive of the Brookfield infrastructure group, in a statement.

A report from pension consultant Townsend Group noted BIF will invest 40 percent of its money in North America and 25 percent to Europe. Twenty percent of the portfolio will be dedicated to South America, and the remaining 15 percent will be divvied up between Australia and New Zealand.

Thirty-five percent of the assets under management in BIF II will be invested in transportation, Townsend said, while another 35 percent will go to renewable power. The remaining capital will be invested in energy, according to the Townsend report. The fund will typically deploy between $200 million and $500 million per investment.

Brookfield pointed out that BIF II is the successor to Brookfield Americas Infrastructure Fund, which BAM closed in 2010 on $2.7 billion. Headquartered in Toronto, Brookfield Asset Management is a $175 billion fund operator with a $33 billion infrastructure business.

With its announcement, BIF II became the second-largest infrastructure fund ever raised behind Global Infrastructure Partners II (GIP II).

In 2012, GIP II from Global Infrastructure Partners closed on $8.25 billion.