(peHUB) Brookfield Asset Management said that its most recent Timberlands Funds raised $1 billion. The target for Brookfield Timberlands Fund V L.P. was $750 million and investors include sovereign wealth funds, public and private pension plans and insurers. Brookfield also committed US$250 million to the Fund.
TORONTO, ONTARIO–(Marketwired – Aug. 20, 2013) – Brookfield Asset Management Inc. (“Brookfield”) (NYSE:BAM)(TSX:BAM.A)(EURONEXT:BAMA), announced today that it held the final close on Brookfield Timberlands Fund V L.P. (the “Fund”) with equity commitments totaling US$1 billion, creating a global fund that will invest in timberlands, primarily in the U.S., Brazil and Australia and may also pursue opportunities in Canada, Chile, Uruguay and New Zealand.
Commitments to the Fund exceeded the original US$750 million fundraising target, reflecting strong investor demand. Investors in the Fund include a diverse group of institutional investors, including sovereign wealth funds, public and private pension plans and insurers. Brookfield committed US$250 million to the Fund, aligning its interests with those of third party investors.
“We believe this Fund will allow our investors to invest in large-scale, high quality timberland assets on a value basis. The Fund will leverage the operating skills of Brookfield’s seasoned team of timberland professionals and actively manage assets to seek to achieve strong risk-adjusted total returns over the long-term” said Reid Carter, Managing Partner of Brookfield Timberlands. “The global timber supply and demand outlook is very favorable for timberland owners, and we believe this sustainable, renewable resource offers significant benefits to institutional investors”.
Brookfield is one of the largest global timberland asset managers, with over three decades of investing experience and approximately 3.3 million acres of timberlands under management in North and South America. The launch of the new Fund follows on the successful US$270 million final close earlier this year of Brookfield Brazil Timber Fund II L.P., which exceeded the target of $200 million.
“We are gratified by the support we have received for Brookfield funds from some of the world’s leading institutional investors, who have committed their capital based on Brookfield’s successful track record as an investor in real assets,” said Leo van den Thillart, Managing Partner of Brookfield’s Private Funds Group. The Private Funds Group has capital commitments of over $28 billion across more than 20 funds.