Brookfield launches Peruvian fund with $460m

Peru’s finance ministry has announced the launch of the country’s first infrastructure fund, managed by Brookfield Asset Management. Roughly half of its intial capital came from local pensions. Brookfield has also raised about $329m toward a special situations fund targeting $1bn.

Peru’s first infrastructure fund – sponsored by the government and managed by Canada’s Brookfield Asset Management together with local advisory firm AC Capitales – has officially launched with $460 million in commitments, the Peruvian finance ministry announced late last week.
 
The lion’s share of commitments ($220 million) comes from Peru’s four private pension funds. State-backed bank Cofide and Brookfield are contributing $100 million each with the Andean Development Corporation chipping in the remaining $40 million, the finance ministry said in a statement.
 
The 12-year fund (which can be extended by three additional years) will target projects in energy, transportation, water and wastewater and other infrastructure sectors across the country, the ministry added. Its first investment is expected in early 2011, with the fund to be fully invested in four years' time, the ministry said.
 
Brookfield and AC Capitales won the mandate to run the fund in September 2009, with the finance ministry pointing out that Brookfield’s $100 million commitment to the fund helped tip the scales in the Canadian firm’s direction. The ministry said Brookfield’s contribution was the first of its kind for a fund manager operating in Peru.
 
Brookfield has also recently closed its North- and South America-focused infrastructure fund on $2.7 billion, beating its initial target by $1.2 billion, the firm said in a statement. Brookfield said the fund attracted capital from sovereign wealth funds and public and private pension plans in North America, Europe, Asia and the Middle East.

Brookfield has also been making progress raising a separate fund for special situations investments. The fund is targeting $1 billion and has rasied about $329.2 million to date, according to a regulatory filing Brookfield made last wek with the Securities and Exchange Commission.

Special situations investments are companies with tangible assets that are experiencing short-term distress, according to Brookfield's special situations website.