Brookfield explores new infrastructure fund months after record close

financialpost.com:

Brookfield Asset Management Ltd. is beginning early-stage discussions about its next infrastructure product, two months after it closed a record fund that it’s deploying into transportation, telecom and other hard assets.

The world’s second-largest alternative asset manager has started informal talks with investors for the sixth vintage of the flagship Brookfield Infrastructure Fund, aiming to launch next year, according to people familiar with the matter who asked not to be identified because the matter is private. The timing is subject to change, one person said.

Brookfield received US$30 billion in commitments for its infrastructure strategy in a process that closed in late 2023 — US$28 billion for the fund and US$2 billion for related co-investment vehicles. A representative for the firm declined to comment.

The Toronto-based manager has US$154 billion of fee-paying assets across its infrastructure, renewables and climate-transition businesses, accounting for one-third of the US$457 billion in capital from which it draws fees.

Brookfield’s infrastructure unit pitches the funds as a way for investors to play major trends shaping the global economy, including the clean-energy transition, digitization and artificial intelligence. Like rival Blackstone Inc., it has poured money into data centres to capitalize on growing interest in AI.

“Stakeholders have made commitments to net zero targets and are grappling with energy, security, supply chain resiliency and meeting the exponentially growing demand for data,” chief executive Bruce Flatt told analysts on Feb. 7, adding that meeting these challenges will require trillions of dollars in investments.

Some investors are drawn to infrastructure funds owning businesses that