Chart of the Week: Brookfield infra hits a peak

Brookfield infrastructure funds by vintage year   

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Toronto's Brookfield, the global asset manager, launched its Brookfield Infrastructure Fund II (BIF II) in Q1 2013 with a target of $5 billion. The target was met within months of launch and, by July 2013, had been surpassed by $1.23 billion.

Brookfield’s success indicates that investors will make commitments to firms with a demonstrable track record: Brookfield Americas Infrastructure Fund held its final close in 2010 and raised almost twice its target size of $1.5 billion due to booming investor demand. The fund is currently investing into transportation, renewable power, utilities and energy infrastructure assets across North and South America.

Despite exceeding the target size for their global funds, the asset manager was not as successful in their fundraising for Latin American funds. Brookfield Colombia Infrastructure Fund and Brookfield Peru Infrastructure Fund both fell short of their targets by $80 million and $60 million respectively, hinting that investors may not have as strong an appetite for country specific funds.

Brookfield confirmed to Infrastructure Investor’s Research & Analytics team that pension funds have shown keen interest in all Brookfield funds. Examples of LPs committing to previous funds include Kansas Public Employees Retirement System and AFP Horizonte. Teachers' Retirement System of Texas is one of many pension funds committing to BIF II.