Global alternative asset manager Brookfield Asset Management (NYSE:BAM) has raised a staggering $30 billion for its infrastructure strategy. About $28 billion of this capital has been raised for the company’s flagship global infrastructure equity fund and $2 billion for associated co-investment vehicles.
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With this closing, the Brookfield Infrastructure Fund V (BIF V) is now the biggest closed-ended private infrastructure fund globally and the largest fund ever for the company. Notably, the raised funds exceeded Brookfield’s target of $25 billion.
A major chunk of this capital comes from the company’s existing investors, including sovereign wealth funds, financial institutions, foundations, family offices, endowments, and public and private pension plans.
BIF V is expected to leverage opportunities associated with the multi-decade themes of digitization, decarbonization, and deglobalization. So far, the fund has deployed nearly 40% of its capital in opportunities across data centers, transportation, renewable energy, and telecom tower assets.
Additionally, the company has teamed up with the UAE’s private markets climate vehicle, Alterra, to set up a Catalytic Transition Fund (CTF). The total capital commitments from Alterra to CTF are expected to support the deployment of more than $20 billion toward decarbonization initiatives. Impressively, Alterra seeks to channel $250 billion for the new climate economy in emerging and developing markets by 2030.
What is the Target Price for BAM Stock?
Overall, the Street has a Moderate Buy consensus rating on Brookfield. Following a nearly 22% jump in the company’s share price over the past month, the average BAM price target of $36.86 points to a modest 4% potential upside in the stock.
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