Brookfield Asset Management has held a final above target closing of its latest flagship global private equity fund, Brookfield Capital Partners V LP, with total capital commitments of $9 billion.
The new fund had a target of $7 billion and is larger than its earlier fund which closed in 2016 with $4 billion of capital commitments.
Limited partners in Fund V include public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations, family offices, and private wealth investors.
Brookfield Business Partners (BBP), a publicly traded limited partnership (NYSE: BBU, TSX: BBU.UN) and the primary public vehicle through which Brookfield owns and operates the business services and industrial operations of its private equity group, has committed $3 billion to Fund V. This is a strong indication of the alignment of interest between Brookfield and its Fund V investor group. BBP was spun out of Brookfield in June 2016.
“We are pleased to have reached this milestone based on the ongoing strong support we have received from our investors,” said Cyrus Madon, head of Brookfield’s private equity business. “We have already deployed capital into a number of high-quality businesses and look forward to continuing to prudently invest where we can bring our operating capabilities, global scale, and expertise as part of the broader Brookfield platform to create value for our investors and our businesses.”
Fund V invests in companies that have high barriers to entry, low production costs, and potential for higher cash flow generation. Sectors of interest include business services, infrastructure services, and industrials.To date, Fund V has invested about $2.5 billion of its capital to acquire several businesses including Clarios, a Glendale, WI-based (near Milwaukee) maker of automotive batteries with nearly $8 billion of revenue. Clarios, the world’s largest lead-acid battery maker by a wide margin, was acquired for $13 billion via a spinoff from Johnson Controls in May 2019. Another buy for Fund V was Healthscope, the second-largest private hospital operator in Australia and the largest pathology services provider in New Zealand, for $4.1 billion.
Toronto-headquartered Brookfield Asset Management (NYSE: BAM, TSX: BAM.A) is an alternative asset manager with over $500 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.
© 2019 Private Equity Professional | November 4, 2019