Brookfield raises $12bn for credit in Q3

Brookfield Asset Management raised $12 billion for its credit strategies in the third quarter, including $2.4 billion in long-term private credit funds, according to its quarterly earnings release reported by Alternative Credit Investor.

Brookfield Wealth Solutions supplied $3.8 billion of the credit total and partner managers another $2 billion. Credit made up just under half of the $25 billion the firm raised firmwide in the quarter.

For allocators underwriting Brookfield against other credit managers, the comparable number is $2.4 billion in long-term private credit funds, the vehicles third-party LPs commit to. Of the rest, $3.8 billion came from Brookfield Wealth Solutions and $2 billion from partner managers. That split leaves a due-diligence question: how much of any Brookfield credit fund is seeded by its own wealth platform.

Brookfield deployed $10 billion across credit strategies in the quarter, including $2.4 billion in opportunistic credit and $1.3 billion through partner managers.

Firmwide fundraising reached $123 billion so far this year and took assets under management past $1 trillion. Fee-bearing capital rose 13% over the past year to $682 billion, fee-related earnings 15% to $864 million, and distributable earnings 15% to $763 million.

“Our fundraising is showing no signs of slowing down and is indicative of the record-level of activity we are seeing across our business,” said Connor Teskey, chief executive of Brookfield Asset Management. “Within our infrastructure group alone, we have received approximately $50bn of commitments to our strategies in the past year.”

The quarter also produced two announced deals: a $2.1 billion strategic capital partnership with a home mortgage lender and an agreement to take a 49% interest in a Kuwaiti pipeline investment with a gross transaction value of $8 billion.

Brookfield walked away from a $600 million Los Angeles apartment tower, as Private Wealth Daily previously reported.