Brookfield Investment Management has completed a USD155 million common stock offering for the Brookfield Global Listed Infrastructure Income Fund, a newly-organised, non-diversified closed-end management investment company.
Assuming full exercise of the underwriters’ over-allotment option, which may or may not occur, the fund will have raised approximately USD177 million. The fund’s shares will commence trading on the NYSE under the symbol "INF."
The fund will invest primarily in a portfolio of publicly traded equity securities of infrastructure companies. The investment objective of the fund is to seek to provide a high level of total return, with an emphasis on income.
"Given the recent volatility in the capital markets, we believe this fund is well-timed to offer investors the opportunity to participate in a growing global asset class that we believe has the potential for payment of attractive dividends," says Kim G Redding, Chief Executive Officer and Chief Investment Officer of Brookfield Investment Management Inc.
"The Brookfield Global Listed Infrastructure Income Fund is differentiated through a pure-play approach to infrastructure investment, focusing on the owners and operators of existing infrastructure assets," says Redding. The fund’s investment universe includes companies that own or lease airports, oil and gas pipelines, electricity transmission lines, seaports, toll roads, communication towers, and water pipelines and treatment plants.
"Importantly, the fund seeks to limit exposure to companies that provide only infrastructure services, such as construction companies or machinery manufacturers. Rather, the fund focuses upon publicly traded infrastructure companies that invest in resilient, long-lived assets that we believe are essential to the global economy," says Redding. "In our experience these types of infrastructure companies are typically supported by stable cash flows and often have revenues that are linked to inflation."
The lead portfolio manager of the fund is Craig Noble, CFA, who brings 13 years experience to his role. He is supported by a team of seven analysts, located in Chicago, London and Sydney.
Noble says: "We believe this global asset class has the potential for significant growth over the coming years, driven by a combination of factors, including global population growth, the need to replace ageing infrastructure in developed nations and the need for new infrastructure in emerging markets. Additionally, a shortage of capital to fund infrastructure development currently exists due to strained government budgets. As a result, infrastructure companies are likely to play an increasingly important role in global infrastructure development."
The initial public offering was led by BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co LLC, UBS Investment Bank and Wells Fargo Securities, LLC.