Brookfield seeks to raise US$7 billion for infrastructure fund

Brookfield Asset Management is seeking to raise at least US$7 billion for its fourth infrastructure debt fund, according to people familiar with the matter.

The fund, which will invest in both junior and senior infrastructure debt, will be the latest iteration of Brookfield’s existing infrastructure debt strategy. The third fund closed in November 2023 after receiving more than US$6 billion in investor commitments. That fund is substantially deployed, with data and renewables assets making up the largest chunk of allocations, according to the people, who asked not to be identified because the matter is private.

A representative for Brookfield declined to comment.

Brookfield said in its earnings call this month that its infrastructure debt fund is already the largest strategy of its kind and that the fourth iteration is expected to be meaningfully bigger than the previous fund.

As the private credit industry grows, firms are searching for new clients, including retail investors and insurance companies. Infrastructure debt in particular is a “very strong fit” for insurance clients, the company has said.

Brookfield agreed on Monday to buy the United States onshore renewables business of the United Kingdom’s National Grid Plc for US$1.7 billion. The asset manager also said this month that it plans to invest €20 billion (US$20.9 billion) to develop data centres and AI infrastructure in France over the next five years.

Brookfield has US$202 billion of assets under management across all its infrastructure assets, according to the firm’s website.

Bloomberg.com