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Private debt

Brookfield set to raise $610 mn for new infrastructure debt fund: report

Oct 11, 2020 (Gmt+09:00)

Brookfield Asset Management Inc. will collect around 700 billion won ($610 million) from South Korean institutional investors for its second infrastructure credit fund which is expected to raise 3 trillion won ($2.6 billion) in its final close, according to a media report.

Brookfield Infrastructure Debt Fund II has drawn pension funds, insurance companies and other institutional investors from Korea through a vehicle launched by Shinhan BNP Paribas Asset Management Co., the Maeil Business Newspaper reported on Oct. 9.

The fund of funds investment by Korean institutions is expected to return over 7% per annum. Of the 3 trillion won fundraising target, Brookfield’s principal investment will account for 10-15%.The new credit fund will lend to brownfield projects, or infrastructure assets in the redelopment process managed by Brookfield as an existing manager.

It will focus on  energy, transport, utilities and telecommunications in North and South America, Europe and Asia. In comparison, Brookfield’s first infrastructure debt fund, which raised $885 million in 2018, delivered an annual return of over 10%, according to the daily.

It had focused on mezzanine debt investments in core infrastructure assets primarily in North and South America, Australia and Europe.

Brookfield Infrastructure Partners, the flagship listed unit of the Toronto-based investment firm, manages $550 billion won of assets. It has raised a combined 40 trillion won for its investment vehicles over the past five years, the report added.
[Edited by Yeonhee Kim]

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