Brookfield’s infrastructure fund attracts $700 mn from major Korean investors - report
Jun 22, 2016 (Gmt+09:00)
1
Min read
Most Read
S.Korea's LS Materials set to boost earnings ahead of IPO process
Macquarie eyes its 1st Korean data center valued around $722 mn
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
POSCO gears up for carbon-free steelmaking with hydrogen
Asset management firm Brookfield has raised a combined $700 million from major South Korean institutional investors, including the Teachers’ Pension, for its upcoming $14 billion infrastructure fund, a local newspaper reported on June 20, citing unnamed investment banking sources.
The Teachers’ Pension, the Public Officials Benefit Association and four other unidentified South Korean institutions have participated in Brookfield Infrastructure Fund III that targets an annual return of about 13%, the Maeil Business Newspaper reported.
For the fund that will buy infrastructure assets in North Americas, Europe and other major regions, the Canada-based asset management firm has wrapped up the first round of fund-raising from investors around the world, raising a total of $11.8 billion. It plans to attract an additional $2 billion by the end of this month to launch the planned $14 billion infrastructure fund.
For its part, Brookfield will make a contribution of part of its own capital, equivalent to 30% of the infrastructure fund.
“Institutional investors, which are increasing alternative investments, are showing a keen interest in infrastructure investment as part of portfolio diversification,” the Korean daily quoted an unnamed investment banking source as saying.
“Considering their large scale and stable returns, (infrastructure is) worth an investment for deep-pocked investors such as pension funds and insurance companies.”
The newspaper added that Brookfield Infrastructure Fund II, which raised $7 billion in 2013, has posted an internal rate of return about 17% a year.
Other investors in Brookfield Infrastructure Fund III include New Mexico’s pension fund, Oregon Public Employees Retirement System and some sovereign wealth funds, the Korea Herald reported on June 21, without citing sources.
Separately, Brookfield had reportedly bid for a prime office building in downtown Seoul, in a deal estimated to fetch $391 million~$410 million, for which Blackstone has been chosen as the preferred bidder, according to another newspaper report earlier this month.
The Teachers’ Pension, the Public Officials Benefit Association and four other unidentified South Korean institutions have participated in Brookfield Infrastructure Fund III that targets an annual return of about 13%, the Maeil Business Newspaper reported.
For the fund that will buy infrastructure assets in North Americas, Europe and other major regions, the Canada-based asset management firm has wrapped up the first round of fund-raising from investors around the world, raising a total of $11.8 billion. It plans to attract an additional $2 billion by the end of this month to launch the planned $14 billion infrastructure fund.
For its part, Brookfield will make a contribution of part of its own capital, equivalent to 30% of the infrastructure fund.
“Institutional investors, which are increasing alternative investments, are showing a keen interest in infrastructure investment as part of portfolio diversification,” the Korean daily quoted an unnamed investment banking source as saying.
“Considering their large scale and stable returns, (infrastructure is) worth an investment for deep-pocked investors such as pension funds and insurance companies.”
The newspaper added that Brookfield Infrastructure Fund II, which raised $7 billion in 2013, has posted an internal rate of return about 17% a year.
Other investors in Brookfield Infrastructure Fund III include New Mexico’s pension fund, Oregon Public Employees Retirement System and some sovereign wealth funds, the Korea Herald reported on June 21, without citing sources.
Separately, Brookfield had reportedly bid for a prime office building in downtown Seoul, in a deal estimated to fetch $391 million~$410 million, for which Blackstone has been chosen as the preferred bidder, according to another newspaper report earlier this month.
Yeonhee Kim edited this article
More to Read
-
Pension fundsKorea’s military fund taps ex-president of Woori Financial as CIO
Jun 28, 2024 (Gmt+09:00)
-
Pension fundsKorea's NPS CIO talks with GPIF, GIC execs on asset allocation
Jun 24, 2024 (Gmt+09:00)
-
Foreign exchangeKorea FX authorities, NPS raise currency swap limit to $50 bn
Jun 21, 2024 (Gmt+09:00)
Comment 0
LOG IN