Brookfield Asset Management Raises $4B for Fourth PE Fund

Jun 2 2016 | 8:45pm ET

Global alternative investment giant Brookfield Asset Management has raised an aggregate $4 billion in equity commitments to its fourth buyout fund. 

Named the Brookfield Capital Partners IV, total capital commitments for the new fund exceeded the original $3.5 billion target and hit the hard cap, according to the company, reflecting strong investor demand for Brookfield’s private equity strategy. 

Investors in the new fund are a diverse group of institutional investors, public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations and family offices, Brookfield noted. The firm committed $1 billion to the fund itself, a proportion of the total raise similar to Brookfield’s participation in its previous funds and assuring an alignment of interests with other fund investors. 

“We are grateful for the strong support we received from our investors, and our global team of investment professionals is dedicated to prudently deploying capital on their behalf, acquiring businesses with strong cash flow potential,” commented Cyrus Madon, head of Brookfield’s private equity business, in a statement. 

Brookfield’s previous fund closed with $1 billion in 2010, and the firm had raised nearly $10 billion for its third global infrastructure fund as of last month.  

Fund IV reportedly focuses on control positions and turnaround opportunities in the middle market, and carries fairly standard terms of a four-year investment period, a 10-year initial term and 1.75% in management fees on committed capital, according to early fundraising documents.

Brookfield is already investing from the new fund. To date, it has deployed $1.5 billion into businesses consistent with the investment strategy, including a leading integrated facilities management company, a global graphite electrode manufacturer and an Australian offshore oil and gas producer.

Brookfield Capital Partners is the private equity arm of Toronto-based Brookfield Asset Management, a global alternative asset manager with $240 billion in assets under management. Among the few publicly listed global PE firms, Brookfield is also one of the oldest, having been founded in 1899 as a builder and operator of transport infrastructure in Brazil and growing into a worldwide owner and operator of property, renewable energy, infrastructure and private equity assets.

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