Brookfield’s Teskey: ‘This was the best Q1 fundraising quarter we’ve ever had’

Among the $20bn raised by the Toronto-based firm during the period was $2.2bn for its fifth flagship real estate fund, BSREP V.

Brookfield Asset Management chief executive Bruce Flatt expects 2024 to be “an excellent year for fundraising.”

Speaking on the firm’s Q1 2024 earnings call last week, Flatt said: “We see continued client demand for more than 50 strategies that are in the market and expect our fundraising to continue to build throughout the year.” In aggregate, Brookfield raised $20 billion of capital during the quarter.

“It was a tremendous quarter,” concurred Connor Teskey, the firm’s president and CEO for renewable power and transition. “In fact, this was the best Q1 fundraising quarter we’ve ever had.”

Among the $20 billion raised in Q1 was $2.2 billion for the fifth vehicle in the firm’s flagship real estate opportunistic series. This brought the total raised for Brookfield Strategic Real Estate Partners V to over $8 billion and completed the first close for the fund. Brookfield also expects to hold a final close for the fund later in the year.

According to PERE data, Brookfield launched BSREP V in February 2023 with a $15 billion target. Investor commitments to the fund include $500 million from Japan’s Government Pension Investment Fund, $200 million from the Minnesota State Board of Investment and $300 million from the Pennsylvania Public School Employees’ Retirement Plan.

“We do recognize that 2023 in terms of fundraising was quite back-end loaded,” Teskey noted. “We don’t see as much of that dynamic this year. We do expect fundraising to be more balanced across the four quarters. Obviously, it will accelerate a little bit towards the back end of the year. But we don’t expect such a concentration in Q4 as we saw in 2023.”

He added that the firm was “really seeing the market opening up” with its real estate flagship fund. “Investors are seeing the upside and the rebound in that asset class and looking to get an increasing amount of exposure,” Teskey said.

In addition to raising capital for funds currently in market, Brookfield also plans to launch its seventh real estate debt fund as well as its fourth infrastructure debt fund later in the year, according to incoming chief financial officer Hadley Peer Marshall.

Brookfield executives, like some of their peers in private real estate, have been vocal about improving market sentiment during this quarter’s earnings season.

“The market environment is also more conducive for transaction activity. We are seeing firsthand an improving market for sales of high-quality assets. This is particularly apparent in the private equity and real estate asset classes, where transaction volume has been lighter over the past few years, but is now picking up,” said Flatt.

Among the firm’s latest real estate transactions include the sale of a 49 percent interest in ICD Brookfield Place, an office property in Dubai, for approximately $1.5 billion. According to Flatt, the deal marked one of the largest real estate transactions globally since the pandemic at the highest-ever valuation for an office property in the Middle East.