Brookfield Asset Management (BAM), a Canadian manager of specialist investment funds, is a quarter of the way toward a $2.5 billion fundraising target for an unlisted infrastructure fund, according to a regulatory filing.
The New York-based Brookfield Americas Infrastructure Fund was established last year and has raised $650 million thus far, according to a Form D filing submitted to the US Securities Exchange Commission.
The fund is an affiliate of Toronto-based BAM, which manages infrastructure, property, power generation and other specialty funds, with total assets under management of $80 billion, according to its website.
John Stinebaugh, chief financial officer of BAM’s infrastructure group, is listed as the chief financial officer for the fund.
BAM already manages an infrastructure fund – Brookfield Infrastructure Partners (BIP) – which listed on the New York Stock Exchange in early February 2008 at $20.19 per share and most recently closed on $13.63, giving it a market capitalisation of $320 million.
BAM also manages a variety of unlisted investment vehicles, many of which feature its listed funds as limited partners.
For example, BIP holds interests in timber businesses via equity interests of 30 percent and 37.5 percent in BAM-managed Longview Timberlands and Island Timberlands, respectively. Both are unlisted funds in which BAM is also an LP, along with a 50 percent participation by outside investors.
In the past, BIP’s management has said that it would be likely to participate in Brookfield-sponsored funds that are targeted at infrastructure assets, but it is unclear whether BIP has an interest in the Brookfield Americas Infrastructure Fund.
“We surmise this filing may indicate that BAM has targeted an infrastructure investment(s) for acquisition, and the investment could be made with institutional investment partners,” Brendan Maiorana, an equity research analyst at Wachovia who covers BIP, wrote in a research note published Monday.
“Since BIP is the preferred infrastructure investment vehicle for BAM, we would expect BIP to participate in BAM-sponsored infrastructure funds/investments,” Maiorana added.
Brookfield did not return a call seeking comment before press time.