First state super invests in brookfield´s third infra fund
First State Super, Australia’s second largest not-for-profit superannuation fund, has announced it has invested in Brookfield Asset Management's latest infrastructure fund, Brookfield Infrastructure Fund III.
Brookfield Infrastructure Fund III is a continuation of Brookfield Infrastructure Fund II which closed in October 2013 with equity commitments totaling US$7 billion. Brookfield Infrastructure Fund III raised US$14 billion in its final close in July 2016. The fund has a target internal rate of return (IRR) of between 12-15%.
The third Brookfield Asset Management fund is focused on transportation, renewable power, utilities and energy sectors in North America, Europe, South America and Australasia. To date, the fund has committed to invest over $3 billion in assets consistent with the Fund’s investment strategy, including a portfolio of U.S. hydroelectric facilities, a portfolio of Brazilian electricity transmission projects, a leading Colombian power generation company, a portfolio of Peruvian toll roads and a U.S. water infrastructure project developer.
First State Super manages around AUD50 billion (US$38 billion) in accumulation funds and a further AUD20 billion (US$15 billion) in retirement funds.
According to sources, First State Super has also participated in Brookfield’s Brookfield Strategic Real Estate Partners II and – which closed recently after raising US$9 billion.
First Super did not disclose the size of its commitments to the Brookfield funds.
Damien Webb, First Super’s head of income and real assets, said:
“Brookfield works in partnerships, so we are exploring with them how and what we can invest with them.”
“We will look for higher-return, opportunistic and value-add investments in real estate and infrastructure, including in Asia and in South America. There are already considerable dislocations in markets like Brazil. We have been doing a lot of work internally to form our own views of the Brazilian and Latin American markets and whether that is an exposure we would like to do more of.”
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