Brookfield Asset Management increased after it said on Friday its Brookfield Infrastructure Partners arm had raised $28-billion for its largest-ever fund, wagering on infrastructure assets the company believes would benefit from a shift to “deglobalization,” given recent geopolitical tensions.
Infrastructure investments typically offer better protection from market volatility and economic turbulence. Since last year, a dearth of opportunities for dealmaking in other sectors has further boosted the appeal of such investments.
Brookfield said the fund has already deployed 40 per cent of its capital in six investments including renewable, transport, data center and telecom tower assets.
The company, which manages over $850-billion in assets, said it had also raised $2-billion for related co-investment vehicles.
Opportunities arising out of “deglobalization” would be one of the themes the fund would focus on, Brookfield said.
Over the past year, geopolitical tensions such as Russia’s war on Ukraine and the recent conflict in the Middle East have prompted fierce debate on the fate of globalization. Worried about the economic fallout of geopolitical instability, businesses and governments are looking at ways to diversify their supply chains.