Brookfield to close on $12bn capital raise for infrastructure fund

Brookfield Asset Management will this week close the $12bn (€10.8bn) capital raise for its third global infrastructure fund.

The fund manager is to co-invest $4bn.

The fund is targeting assets that can produce a 10% net IRR, inclusive of a 5% cash yield.

The fund has a four-year investment period and 12-year total life.

Capital will be invested in North America, Europe, South America and Australasia.

Transactions could range between $400m and $1bn.

Brookfield is seeking assets where it has total control or co-control.

One of the last limited partners to place capital into the fund was the New York State Common Retirement Fund with a $300m commitment.

The allocation is the pension fund’s first to Brookfield as an infrastructure manager.

New York Common said Brookfield provided access to globally diversified infrastructure and offered the pension fund significant scale.

The US pension fund said it had been in touch with Brookfield regarding Brexit and would continue to monitor the situation following the UK’s vote to leave the European Union. 

The commitment by New York Common brings its infrastructure portfolio to $900m.