TORONTO-Brookfield Asset Management said Wednesday it had closed on Brookfield Infrastructure Fund II at $7 billion, including $2.8 billion from BAM itself. The fund’s initial target was $5 billion.
Operating on a global scale, BIF II will follow the strategy of the $2.7-billion Brookfield Americas Infrastructure Fund LP, which closed in 2010. It will focus on transportation, renewable power, utilities and energy assets in North and South America, Europe and Australasia, owning and operating the assets over the long term.
BIF II has more than 60 investors from across the institutional spectrum, ranging from sovereign wealth funds to public and private pension plans. Half of the investors are first-timers to Brookfield funds.
“We are pleased to launch this fund at a time when we see strong opportunities to invest in high quality core infrastructure assets on an attractive risk-adjusted return basis,” says Sam Pollock, senior managing partner and CEO of Brookfield’s Infrastructure Group. “We believe real assets such as infrastructure are an important and growing component of institutional portfolios, and we see significant potential for investments in all the regions where we operate.”
According to a presentation to the New Mexico State Investment Council, which committed $100 million to BIF II, the fund will make 15 to 20 portfolio investments each requiring between $200 million and $500 million of equity. North American investments will comprise 40% of the investment activity, with activity in Europe, South America and Australasia comprising 25%, 20% and 15%, respectively.
Toronto-based BAM’s second infrastructure fund is among the largest ever raised in the space. The current record-holder is Global Infrastructure Partners‘ $8.25-billion GIP2, which closed in 2012.