Brookfield to launch €10bn private debt fund with Societe Generale

Written by Michael Griffiths

12/09/2023

Brookfield Asset Management has announced a strategic partnership with French bank Societe Generale (SocGen) to originate and distribute investments through a private investment grade debt fund.

The initial fund, which is expected to meet the needs of insurance companies, is targeting a total of €10bn over the next four years and will launch with €2.5bn of seed funding.

Founded on an existing relationship between SocGen and Brookfield, the partnership will aim to leverage both companies’ origination capabilities, operating expertise, and real asset knowledge. The move will also allow the two companies to significantly increase their footprint in financing the global economy over time by providing large scale commitments with differentiated forms of capital.

Brookfield revealed that the seed fund will focus on two strategies, with one for real assets credit across the power, renewables, data, midstream and transportation sectors, and another for fund finance.

The group then suggested that the fully integrated vehicle, with origination and distribution capabilities, will provide issuers with “tailored” investment grade financing options and investors with “differentiated high-quality investment opportunities”.

In particular, Brookfield said it expects the fund to meet the needs of insurance companies with investment-grade products tailored to meet their ratings and duration requirements.

“We are delighted by this partnership, which provides an entirely new answer to the growing demand for private debt and will have a positive impact on the real economy while simultaneously scaling up SocGen’s origination and distribution capabilities,” said SocGen CEO, Slawomir Krupa.

“This pioneering approach represents a unique alignment of interests between two leading players in their respective fields.”

CEO of Brookfield, Bruce Flatt, added: “We’re excited to bring our own capital and our institutional client capital to unlock a tremendous opportunity within the investment grade market to support critical industries that underpin the global economy.

“We look forward to being a partner of choice for borrowers looking for bespoke scale capital and to institutions seeking exposure to investment grade private credit.”

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