Brookfield Asset Management exceeded expectations with its latest private equity fund that closed on Wednesday with $4 billion of equity commitments.
That figure is around $500 million above the original target and was raised over the course of a year.
It’s an impressive result for the global asset manager, especially considering its previous fund that amounted to $1 billion took about 18 months to reach that amount.
Speaking to media following the announcement was Cyrus Madon, head of Brookfield's private equity business: "We are grateful for the strong support we received from our investors,” he said. “Our global team of investment professionals is dedicated to prudently deploying capital on their behalf, acquiring businesses with strong cash flow potential."
The fact Brookfield exceeded its target by such a large amount reflects well on the strong investor demand for its private equity strategy.
With dedicated professionals located in the US, Canada, Europe, India, Australia and South America, Brookfield aims to find high-quality businesses right across the globe that provide real value for investors.
Those making up the $4 billion in this particular fund compromise a diverse mix of institutional investors, including public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations and family offices. Brookfield itself has committed US$1 billion to the fund, a sure sign of its faith in its success, as its private equity head emphasized. "We generally try to invest in out of favor sectors and industries, so our strategy is not going to change," Madon said. "But we are seeing some potentially very lucrative opportunities."
The closing of the fund brings Brookfield’s fundraising over the past year to a record $25 billion, a reflection of global capital seeking other avenues outside traditional investments such as the bond markets, where yields remain at near record lows.
Brookfield asset management raises $25 billion
Brookfield asset management deemed a ‘forever stock’