Brookfield to launch second Latin infra fund

The Toronto-based firm is to launch a Peruvian infrastructure fund in conjunction with local fund manager AC Capitales. The fund will have a target size of around $500m, with the two fund managers contributing a combined $100m.

Brookfield Asset Management is to launch a Peruvian infrastructure fund, its second infrastructure fund in Latin America.

The Toronto-based firm will work in collaboration with Peruvian fund manager AC Capitales in managing the fund, which will likely have a target size of around $500 million. The two fund managers have committed to investing a combined $100 million in the fund.

Peruvian finance
minister Luis
Carranza at the
fund's launch

The establishment of the fund is the result of a memorandum of understanding (MoU) signed between the Peruvian government, the Inter-American Development Bank and Corporacion Andina de Fomento earlier this year. The MoU was intended to create a mechanism to facilitate private investment in Peruvian infrastructure projects. These three institutions, in addition to Peruvian private pension funds, are set to be the largest investors in the fund.

Brookfield and AC Capitales were selected by the lending institutions to manage the fund after a competitive selection process.

The fund will focus largely on investments in the transportation, energy, water and communications sectors, the firms involved said in a joint statement.

The Peruvian fund will be Brookfield’s second infrastructure venture in South America. Earlier this month the firm reached first close on $320 million for a fund focusing on Colombian infrastructure. The fund, which is targeting $400 million in total commitments, received investments from Colombian insurance companies and pension funds, and follows Brookfield’s establishment of an office in Colombian capital Bogota earlier in the year.