Canadian Investment Firm Brookfield Asset Management on Tuesday announced that it has closed its latest flagship global private equity (PE) program, Brookfield Capital Partners VI (BCP VI). With $12 billion in total capital raised for the strategy, BCP VI is the largest private equity fund raised by Brookfield.
Partners in BCP VI are a diverse group of institutional investors, including public and private pension plans, sovereign wealth funds, financial institutions, endowments and foundations, and family offices. Brookfield has committed $3.5 billion to the Fund, underscoring the firm’s alignment of interests with other investors.
Cyrus Madon, CEO of Brookfield’s Private Equity Group, said that the company was grateful for the confidence and support from its investors for BCP VI, Brookfield’s largest private equity fund raised to date.
“Reaching this milestone is a testament to our strong track record and longstanding strategy of investing in high-quality, cash-generative businesses that will benefit from Brookfield’s deep operating expertise,” he added.
Anuj Ranjan, President of Brookfield’s Private Equity Group, said that their global deal pipeline remains robust during this current period of market dislocation, which is creating significant large-scale opportunities that suit our operationally intensive investment approach.
To date, the Fund has committed approximately $4 billion to acquire six market-leading businesses and continues to provide meaningful co-investment opportunities to its partners.
According to PitchBook, the financial data and software company with offices in London, New York, San Francisco and Seattle, PE fund managers have been putting greater amounts of capital into their own funds, a strategy known as GP commitment.
Managers frequently adopt the practice to convince their limited partners that they have an alignment of economic interests. However, GP commitments in some recent funds have well exceeded the industry average of close to 5%.
“In April, KKR closed a $8 billion sixth European buyout vehicle and contributed 12.5% of capital—over $1 billion—into that fund. Even Kelso & Company, a middle-market PE manager, closed a $3.25 billion buyout fund with a more than $400 million GP commitment, or over 12%,” PitchBook added.
About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with US$850 billion of assets under management across renewable, infrastructure, real estate, private equity, credit and other. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world, which include public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for its clients, across economic cycles.