Brookfield’s Flatt: We’re in the early stages of a fundraising super-cycle

Brookfield Asset Management is gearing up for even more cross-platform fundraising after securing $40 billion in fresh capital last year.

In a year-end financial results webcast last week, chief executive Bruce Flatt spoke of continued “strong momentum” on the fundraising front in 2021 and beyond.

“We’re in the early stages of a fundraising super-cycle,” Flatt said. Brookfield is confident the upcoming round will meet an overall target of $100 billion that was set last year, he added.

The Toronto-headquartered alternative-asset manager’s plans encompass longstanding strategies such as infrastructure, private equity and real estate, as well as areas where Brookfield is looking to build a presence.

Brookfield’s fourth real estate flagship offering is already in the market, Flatt said, without identifying a target.

The private equity and infrastructure groups are also expected to “launch fundraising for their next vintages in the next 12 months”, Flatt said. Existing flagship vehicles for both are almost 60 percent invested or committed. Brookfield closed its Brookfield Capital Partners V private equity fund in 2019 on $9 billion and its fourth infrastructure fund in 2020 on $20 billion, PEI data show.

Other planned launches reflect an interest in four sectors that Flatt said will be “meaningful to our long-term growth strategy”. They include a debut energy transition fund focused on investing that will help accelerate the move to a net-zero carbon economy. Brookfield is targeting more than $7.5 billion.

Flatt said the offering has begun raising capital, with Brookfield providing a $2 billion anchor commitment. The energy transition platform’s leadership includes Mark Carney, the former Bank of England and Bank of Canada governor, who joined last year to run ESG and impact investing.

“As we come out of this health and economic crisis, we expect it to be a good time for companies to reset their strategies and focus on sustainable growth,” Flatt said. Because Brookfield is “carbon zero across our entire $600 billion asset footprint” it is “well-positioned to assist others with this transition”.

Brookfield is also deal-making and bringing in initial capital for its inaugural real estate secondaries platform, Flatt said. He did not mention a target.

Sister title Secondaries Investor last year reported the hire of Partners Group‘s Fabian Neuenschwander and Marcus Day to assist in developing the firm’s strategy.

Brookfield last fall outlined its push into energy transition and secondaries, as well as reinsurance and technology, sister title Buyouts reported. Through fundraising and other initiatives, the firm believes it can achieve long-term value of up to $450 billion. Sachin Shah was appointed to the role of CIO in part to oversee this activity.

Flatt did not share details about a flagship tech offering, except to say that Brookfield has assembled a team. It is being led by Josh Raffaelli, a former Silver Lake executive.

The $40 billion raised by Brookfield last year takes in the initial $12 billion secured for partner Oaktree Capital’s 11th distressed debt vehicle. In addition, $16 billion went into other credit strategies, and $4 billion into perpetual pools.

– This report was originally published on sister title Buyouts.