The firm has been stockpiling dry powder. It just raised $15 billion for its largest real estate fund to date and is seeking $9 billion for its fifth private equity pool, or more than double what it raised for its predecessor fund.
Brookfield’s seeming knack for flying under the radar may spring from the understated way of doing business that comes from the top.
Flatt became chief executive officer of Brookfield in 2002, when it was still called Brascan Corp., which had been established to manage the fortune of Canada’s wealthy Bronfman family.
Counter-Cyclical Bets
An accountant by training, Flatt’s demeanor is low-key. He takes lunches with new hires in Brookfield’s Toronto boardroom. He has built the firm by making counter-cyclical investments in sectors and geographies where capital is scarce and assets are cheap.
Last year’s GGP deal is a bet against the so-called retail apocalypse. Brookfield has also been bullishly seeking infrastructure deals in Brazil, following a political scandal that has upended the economy. That included partnering with investors in 2016 to buy a Brazilian natural gas business from Petroleo Brasileiro SA
Brookfield is a shrewd investor that will walk away from a deal before overpaying, according to Rothschild, the Canaccord analyst.
“They are looked at as a very sophisticated, strong company that is going to buy assets when companies need to sell,” he said. “In many cases, their transactions are a little more complicated.”
This article provided by Bloomberg News.