Brookfield to launch new ‘flagship’ infra fund next year

Just 10 months after closing a then-record $14bn fund, the Canadian firm is eyeing a new vehicle with BIF III now 45% invested.

Brookfield Asset Management has revealed it expects to begin fundraising for a new infrastructure fund next year.

The move comes as Brookfield continues to deploy the $14 billion Brookfield Infrastructure Fund III, which closed in July last year and was at the time the world’s largest infrastructure fund. BIF III is now 45 percent invested, the firm told shareholders in a letter late last week. Its $9 billion real estate fund and $4 billion private equity vehicle are also 80 percent and 55 percent invested, respectively.

“Given this [investment], we expect to launch fundraising for our next real estate flagship fund later this year and to begin fundraising for our next infrastructure and private equity flagship funds in 2018,” chief executive Bruce Flatt wrote.

Brookfield declined to comment further on the new fund.

Brookfield’s investments via BIF III include the acquisition of a Peruvian toll road, the purchase of the Olmos irrigation business in Peru and a $650 million equity injection in a telecommunications tower firm in India.

However, its $5.2 billion deal, jointly with China Investment Corporation and GIC Private, to buy a gas pipeline business in Brazil from troubled Petrobras was halted in February by a Brazilian judge following concerns over the transparency of the sale with regards to competition. The divestment by Petrobras was allowed to continue by a Brazilian court in March and Brookfield said the deal has recently been closed.

“While we continue to observe active deal flow for infrastructure assets, we remain disciplined and patient,” Flatt added. “Our current pipeline is strong and we are continuing to evaluate a number of opportunities in North America, particularly in the energy sector, where capital is constrained due to low commodity prices and telecom opportunities in India, where we see additional opportunities to add scale to our business.”