Global Alternative Asset Manager Announces Big Fundraising Year
Toronto, Canada-based investment management company Brookfield Asset Management reported a 6% increase in distributable earnings of $569 million in Q4 2022. This is the first quarterly report for Brookfield since going public following a spin out from parent Brookfield Corp. Since its IPO, the company has raised a record $93 billion in capital in 2022. Brookfield manages $418 billion in "fee-bearing capital" across asset classes such as real estate, infrastructure, credit, private equity, and renewable power. The company aims to more than double their AUM to $1 trillion by 2027, through growth in private credit and insurance, as well as potential acquisitions. Brookfield expects to launch its second global transition fund and raise capital for its fourth real estate flagship fund.
"Our fundraising outlook remains strong. In 2023, we expect to have three flagship funds in the market, along with several complementary perpetual strategies and other long-term funds that will provide our clients with a full suite of investment alternatives."
Bruce Flatt, Brookfield Asset Management
Private Funding Pulse Check
Point Field Partners has invested in a recent $32M Series B funding round for Craft, a platform with solutions that aim to create a more resilient global supply chain
EVOLEM played a lead role in the $3.5M Seed funding round of Axeptio, a platform designed to help companies gather consent and comply with GDPR and ePrivacy requirements
RB Investments participated in a $400K Pre-seed funding round for The Zero Fund, an all-in-one carbon compensation management platform that provides carbon credits and net-zero strategy tools
Temerity Capital Partners took part in a $2.9M Seed deal with Upwardli, a "credit onramp" that allows making credit building fast, easy and affordable
Solar Energy Capacity Expected to Boom in the U.S. Midwest
The Midwest states of Ohio and Indiana, historically reliant on coal power, are on the brink of "solar-farm booms". Experts predict that solar capacity levels in these states may rival those of Nevada and trail only those of Texas and California, between now and 2027. Although Ohio has sought to slow or block renewable energy projects, developers are expected to install enough panels in the two states to power around 12 million households, which would equate to 15 gigawatts of new solar capacity. The low cost of solar power and the promise of construction and manufacturing jobs are making the clean energy source more attractive in the Midwest, particularly with large electricity consumers, including tech companies and manufacturers who are demanding that it be used to power their factories and data centers. Despite the appeal, there are still barriers to the growth of renewable energy in Ohio, particularly with the state's government trying to protect coal and nuclear plants.
"When you look at renewable energy, the reddest Republican areas are the ones that are benefiting the most..."
Nick Cohen, Doral Renewables
Russia Increases Investments to Mitigate Sanction Pain
Russia is trying to boost its economy through investment despite the sanctions it faces from the likes of the United States, U.K. and the European Union. The Russian economy has been in crisis for some time, but has managed to stay afloat through exports of commodities, which have provided capital for the government and businesses. Despite the resilience of the economy, it is expected to contract by 1.5% in 2023 due to decreased corporate earnings and the pressure from sanctions. Sources of capital expenditure have predominantly come from Russia's own funds, followed by state funds and bank loans. While government and state corporation investment may increase, private sector investment is expected to decline. Companies have had to invest to survive, and this has led to the creation of new businesses and the development of new infrastructure for trade. The costs of economic isolation will increase over time, for now companies are focusing more on survival than development.
"Russia’s recession is unlike any before it. During a typical downturn, private investment takes the biggest hit, while household consumption declines less. Not this time. We estimate this anomaly will disappear in 2023 as high uncertainty and the risks of doing business in Russia depress investment."
Alexander Isakov, Russia Economist
Canadian Family Office Paves the Path for Holistic Client Servicing
Samara Capital has joined the CEOS consortium, a group of independent, family-owned firms that offer wealth management and family office services. By joining the consortium, Samara is now able to differentiate itself in the market and offer its clients the administrative aspect of its framework. Over the past year, Samara's clients, who have integrated alternative asset portfolios, have been able to maintain flat portfolio performance in the face of market volatility. The company is selective with its investments in private equity and currently favors managers in the secondary market of private equity rather than primary funds. The family office sees the growth in secondary offerings from institutions and pension plans as a great opportunity for investors.
"Our entire purpose in founding Samara was to address our clients’ needs, specifically across four pillars: family continuity, integrated planning, global investment, and administration...One thing we needed to access, acquire, or just build internally was the capability to deliver the administrative aspect of our framework. And I think with the CEOS partnership, we can more confidently differentiate ourselves in the market.
Hightower Advisors has facilitated a strategic merger between TC Wealth Partners and EFG Advisors, bringing their combined AUM to more than $2B (Cision)
Mirador LLC has concluded the purchase of Fusion Financial Partners, strengthening its institutional and RIA service offerings (PBI)
Wealth Enhancement Group has announced the acquisition of Washington Wealth Advisors, a Falls Church, VA-based RIA with more than $273M in assets (Cision)
Written by:
Andrew Popp | Sr. Research Associate
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