BBU vs BIPInteresting discussion about a potential transaction not metting the return requirements for BBU so it was shunted over to BIP. In other words, BBU is Brookfield's high return vehicle:
"Geoffrey Kwan
Okay. I would say that, that inner credit transaction was announced on the BIP side. I know that there was a comment about, kind of, a lower return profile as to maybe giving him as to why it might not have been done through BBU. Was that it? Or was there any other issues why it was more obvious of a fit for BIP over BBU?
Cyrus Madon
So once in a while and very rarely, we [indiscernible] comes across the transaction that might fit in either BIP or BBU. And when that happens, we sit down and we think about what the most appropriate home for it is. In this particular case, just given the exceptionally strong, current cash flow characteristics, we just couldn't get to the return threshold we need at BBU, given -- we'd be quite happy to take the return on the growth of that business, but given where it needed to transact and did ultimately transact, it just didn't work from a return profile for BBU. And our understanding is the parties that we're looking at this business were primarily infrastructure style investors. And in fact, there was a similar business called Reliance that sold recently and it was sold to an infrastructure buyer as well."