Exclusive: Brookfield ups Fund III hard-cap to $14bn

The Toronto-based manager is looking to complete fundraising this summer after holding a $11.8bn first close.

Brookfield Infrastructure has raised its latest vehicle's hard-cap to $14 billion after beating its $10 billion initial target, Infrastructure Investor has learnt.

According to a document filed with the Securities and Exchange Commission on Thursday, Brookfield has so far raised $11.8 billion for Brookfield Infrastructure Fund III, placing it within striking distance of its $12 billion original hard-cap less than a year after launching the vehicle.

The Toronto-based firm, which has $4 billion of its own capital committed to the fund, expects to hold a final close this summer, according to people with knowledge of the matter. Brookfield declined to comment.

Like its predecessor, BIF III will invest in the transportation, energy and renewables sectors in OECD countries. Fund III will target investments ranging from $400 million to $1 billion in size. It will have a four-year investment period and a 12-year term, subject to two one-year extension options.

Initially set to be the second-largest infrastructure fund ever raised, the revised hard-cap could push BIF III ahead of GIP III, a vehicle New York-based fund manager Global Infrastructure Partners is raising with a target of $12.5 billion and a hard-cap of $15 billion. As of February, GIP had raised $7.7 billion for its third vehicle, according to an SEC filing.

In addition to having similar mandates – large-scale investments across the infrastructure sector in OECD markets – the two vehicles also share a number of limited partners. According to Infrastructure Investor Research and Analytics, these include the Oregon Investment Council, which has committed $400 million to each fund, and the Maine Public Employees Retirement System, which has pledged $150 million to both vehicles.

Other LPs investing with BIF III include the New Mexico State Investment Council, the Seattle City Employees Retirement System and the Public Employees Retirement Association of New Mexico.

In addition to competing on the fundraising trail, Brookfield and GIP last year were also vying to acquire Asciano, one of Australia's largest logistics and port operators. After months of trying to outbid each other, the two managers last month agreed to a joint bid of $6.75 billion for the asset.

Listed on the New York and Toronto stock exchanges, Brookfield Infrastructure owns and operates utilities, transport, and energy assets worldwide. Over the past decade it has deployed over $20 billion of equity capital in more than 80 investments.