According to sources, Brookfield Asset Management is set to achieve US$10 billion first close for its Brookfield Infrastructure Fund III. It is expected that the fund will overcome the initial hard cap of US$12 billion, becoming the biggest private equity infrastructure vehicle ever raised. 

Brookfield Infrastructure Fund III is the continuation of Brookfield Infrastructure Fund II, which closed in October 2013 with equity commitments totaling US$7 billion. 

The third Brookfield Asset Management fund is focused on transportation, renewable power, utilities and energy sectors in North America, Europe, South America and Australasia. It has a target internal rate of return (IRR) of between 12-15%.

As we recently reported in March, Brookfield Infrastructure Fund III was initially targeted at US$7 billion.

The fund is to be backed by, among others: the Oregon Investment Council, the New Mexico State Investment Council, the Maine Public Employees Retirement System and the Seoul-based Public Officials Benefit Association (POBA).

According to sources, Bruce Flatt, Brookfield’s chief executive, said:

"I think there is enormous change going on in the institutional client world, driven by the fact that interest rates have come down dramatically over the last number of years. They need to earn yield within their funds. And the percentage allocations to real assets hasn’t even started to go to the percentages which most of them want".