Brookfield plans March first close for $17bn Fund IV

The fund is targeting a net return of 10%, with the firm’s two previous funds both generating IRRs of about 13%.

Brookfield is planning to hold a first close on its fourth infrastructure fund towards the end of March as it eyes a $17 billion target.

Brookfield Infrastructure Fund IV was launched late last year and could see a $400 million commitment from the Oregon Public Employees Retirement Fund, which invested the same amount in BIF IV’s $14 billion predecessor, a fund that closed in July 2016. Brookfield intends to contribute at least 25 percent of the fund’s total commitments.

The fund will be primarily targeting assets in the transport, renewables, utilities, energy and data sectors, with investments ranging from between $500 million to $1.5 billion, according to meeting documents of the Oregon Investment Council, which manages OPERF alongside the Oregon State Treasury.

Sam Pollock, chief executive of Brookfield Infrastructure, said in November that it will be “an even battle” between the energy and telecommunications sector as to where the company deploys capital over the next five years, but over the next decade, it will “more than likely be data”.

Recent investments from the group’s third fund include a $600 million investment in North American residential energy company Enercare, in addition to a $3.3 billion acquisition of midstream assets in Western Canada that it purchased from Enbridge.

“Brookfield deploys a contrarian strategy by identifying sectors or geographies that are out of favour and present attractive pricing opportunities,” according to a memo from Oregon Investment Council.

BIF IV will continue the strategy of predecessor vehicles by targeting a 10 percent net IRR. BIF III is generating a gross and net IRR of 22.3 and 13.3 percent respectively, according to figures released by the Sacramento County Employees’ Retirement System in August last year. BIF II is generating a net IRR of 13.1 percent and net money multiple of 1.39 times as at end of March last year, according to the New York City Employees’ Retirement System.

Brookfield declined to comment on the fundraising process.

In December, OIC approved the same amount for Global Infrastructure Partners IV, the latest vehicle New York-based fund manager Global Infrastructure Partners is in the process of raising, which has a slightly higher target than BIF IV of $17.5 billion and a hard-cap of $20 billion.