Brookfield eyes late 2021 for infra secondaries fund launch

The $91bn Brookfield Infrastructure Group plans to seed capital to support a third-party fundraise.

Brookfield Asset Management, the $600 billion asset manager, plans to start accepting outside capital for its infrastructure secondaries strategy late this year.

The Toronto-headquartered firm is building out its infra business having launched a real estate secondaries strategy this year, according to a job advert for an associate-level hire detailing the asset management giant’s strategy.

The infrastructure secondaries strategy will primarily focus on GP-led and other structured transactions, with opportunistic investments in LP deals. Brookfield will launch this business in North America and Europe, with an eye towards global coverage, according to the advert.

That platform will sit inside the broader infrastructure and renewables business, the $91 billion assets under management Brookfield Infrastructure Group.

Brookfield plans to seed the strategy with its own capital at first, the advert noted.

On a first quarter earnings call last week, chief executive Bruce Flatt said the firm had largely decided to grow its secondaries capability organically, as affiliate title Private Equity International reported.

“We’ve hired teams in real estate, and we now have funds we’ve raised initially for secondary investments and done a number. We’re building out infrastructure, and we’re going to turn to private equity next,” Flatt said.

Infrastructure and real assets secondaries accounted for 5 percent of the $60 billion that traded on the secondaries market last year, according to investment bank Greenhill’s Global Secondary Market Review.

On the real estate side, Brookfield’s secondaries team stands at seven professionals, Secondaries Investor reported in March. This includes Kayley Laren, most recently a vice-president in the real estate investment group at Goldman Sachs and Julian Falconer, a senior investment associate from StepStone. The pair joined Brookfield in the past eight months.