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Brookfield Creating Pool to Invest in Financial Infrastructure – BNN Bloomberg



(Bloomberg) — Brookfield Asset Management plans to start a pool that invests in financial infrastructure, such as payments systems, as demand for the asset class grows. 

“The next phase of infrastructure investing is in the financial backbone of the global economy,” Chief Executive Officer Bruce Flatt said in an interview with Bloomberg TV in London. He added that the firm is “creating a new pool of money to do that.” 

Brookfield, which managed $916 billion at year-end, including its parent company’s capital, has tapped former Worldpay CEO Ron Kalifa to help lead the financial infrastructure group within its private equity arm. 

A representative for the Toronto-based firm declined to comment further on its plans.

About two months after closing its fifth flagship infrastructure fund with a record $30 billion, Brookfield is beginning discussions about raising money for a sixth vintage. That’s in addition to gathering cash for a new fund targeting buyout opportunities in the Middle East, as well as raising a second global transition fund and a new Catalytic Transition Fund. 

“There’s a fine line between having too many things and making sure your clients who want to be invested with you in that type of area have a pool to be able to do it with us,” Flatt said. 

Some investors are drawn to infrastructure funds owning businesses that generate steady, contracted revenue that rises over time. Brookfield focuses on investing in the backbone of the global economy, such as gas pipelines, telecoms towers, and data centers. 

Infrastructure has been a bright spot for the asset manager and its parent, Brookfield Corp., which are exposed to the battered office real estate sector. 

Real estate fundamentals are improving amid expectations that interest rates will decline, boosting the value of commercial properties, said Flatt, 58. Brookfield recently foreclosed on some loans for multifamily homes in the US, according to the CEO, who also sees opportunities in Europe’s real estate market given the scarcity of capital there. 

The Brookfield group is also implementing its succession plans, which were mapped out less than two years ago. Earlier this month, Anuj Ranjan took over as CEO of the private equity division, succeeding Cyrus Madon, who became executive chairman of private equity.

“I will become an executive chairman at some point,” Flatt said. “What that means is I’m here to help mentor young people, help with business development, look after clients, that can be helpful to the overall organization.”

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