I saw on Costar Daily News yesterday that Brookfield Asset Management have just raised a pretty staggering $14 billion of capital for an infrastructure fund. They’re the largest real estate asset management company in the world with real estate assets under management assets worth approximately $120 billion. They were the largest buyer of European real estate in 2015. However, infrastructure is obviously an important and rapidly growing part of their business.
I’ve been posting before on the issues involved in including infrastructure into a real estate academic programme and its relationship with real estate as an asset class (here and here). The Costar article highlighted the sheer range of assets involved in terms of their type and location.
To date, the Fund has committed to invest over US$3bn in assets consistent with the Fund’s investment strategy, including a portfolio of US hydroelectric facilities, a portfolio of Brazilian electricity transmission projects, a leading Colombian power generation company, a portfolio of Peruvian toll roads and a US water infrastructure project developer.
In terms of infrastructure Brookfield seem to have quite a large focus on power generation and emerging markets. Although things will have changed since 2013, their assets under management were then property: $126 billion, power: $22 billion, infrastructure: $31 billion, public Securities: $18 billion, private equity: $21 billion, and development activities: $7 billion. Clearly the sheer scope and scale of infrastructure is huge.
Nevertheless, I suspect that this topic is coming our way.