Brookfield Asset Management Inc. has raised $14 billion for a new infrastructure fund that exceeded its target by 40%, the Canadian asset manager said.
This is the largest private fund raised by Brookfield and the largest private infrastructure fund ever raised in the industry, it said in a statement. The Brookfield Infrastructure Fund III invests in high-quality, core infrastructure assets, it added.
Brookfield invests in India out of its global funds and has struck two deals in the country in the past two years. The firm acquired some road assets from Gammon Infrastructure Projects Ltd in August last year and bought a majority stake in a string of industrial parks in Delhi-NCR from Unitech group in 2014.
The company had also come in as an anchor investor in Core Infrastructure India Fund Pte Ltd, an India-focused infrastructure private equity fund floated by Kotak Mahindra Group, in 2013.
Brookfield said total capital commitments of the new fund exceeded the $10 billion target, reflecting a robust investment pipeline and strong investor demand for the asset class.
“This fundraise demonstrates that demand for infrastructure investing is growing as investors continue to increase their allocations to real assets,” said Sam Pollock, head of Brookfield’s infrastructure business.
About 120 institutional investors put money in the new fund. These include public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations and family offices. Brookfield said it committed $4 billion to the fund, which has so far committed to invest over $3 billion in assets in the US and South America.
The new fund is double the size of its predecessor fund, which hit final close in 2013 with $7 billion of capital commitments. It takes the total amount that Brookfield has raised in the past 18 months to $27 billion; it previously raised $9 billion in a real estate fund and $4 billion in a private equity fund, with both funds surpassing their fundraising targets.
The global alternative asset manager has more than $240 billion of assets under management across property, renewable energy, infrastructure and private equity segments.
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