Brookfield expects to raise more than $5bn (€4.56bn) for its third infrastructure debt fund.
During a second-quarter earnings announcement, Brookfield Asset Management’s president Connor Teskey said Brookfield Infrastructure Debt Fund III had raised $4.3bn to date, surpassing the previous fund’s $2.7bn.
“We anticipate a final close later this year, tracking a total fund size over $5bn, well surpassing our initial fund target,” Teskey said.
The fund will focus on renewable energy globally, providing mezzanine debt for core assets.
As previously reported, Maine Public Employees Retirement System and the New Mexico State Investment Council committed $250m and $150m, respectively, to the fund.
Teskey said Brookfield also closed on a further $3.4bn for Brookfield Infrastructure Fund (BIF) V, taking the capital raise for its fifth flagship infrastructure fund to $27bn and making it the largest infrastructure draw-down fund ever raised.
“This vintage will continue to grow as we close out more capital commitments before year-end,” Teskey said.
BIF V’s backers include the New York State Common Retirement Fund which recently disclosed making a $300m commitment. Other investors include Maryland State Retirement and Pension System, Teachers’ Retirement System of the State of Illinois, the South Carolina Retirement System, the New Mexico State Investment Council and the Teacher Retirement System of Texas.
Brookfield raised $20bn for BIF IV which closed in February 2020, exceeding its original $17bn fundraising target.
Teskey said Brookfield continued to see ”very strong momentum on the fundraising side” and expected this “to accelerate in the second half of the year as we progress our efforts on recently launched funds”.
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