{"id":59374,"date":"2025-05-06T15:55:34","date_gmt":"2025-05-06T15:55:34","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/05\/06\/brookfield-plots-opportunistic-investments-amid-market-dislocation\/"},"modified":"2025-05-06T15:55:34","modified_gmt":"2025-05-06T15:55:34","slug":"brookfield-plots-opportunistic-investments-amid-market-dislocation","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/05\/06\/brookfield-plots-opportunistic-investments-amid-market-dislocation\/","title":{"rendered":"Brookfield plots opportunistic investments amid market dislocation"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" title=\"Washington may welcome Canada&#039;s &#039;coherent&#039; talk on trade\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/JiuCW87tqq4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<\/iframe><\/p>\n<p> Brookfield Asset Management Ltd.<\/p>\n<p>                 has nearly US$120 billion in untapped capital, which chief executive Bruce Flatt said should help the alternative asset manager navigate market dislocation and partner with governments and others seeking capital and operational expertise in these turbulent times. <\/p>\n<p> \u201cHistorically, these periods have provided us with some of the best opportunities to deploy capital given our long-term mindset, capital scale and ability to move decisively,\u201d he said in the letter to investors that was also signed by Connor Teskey, Brookfield\u2019s president. <\/p>\n<p> The executives said counterparties, including governments, are turning to Brookfield because of its capacity to act quickly, create tailored solutions and offer confidence to ensure transactions close.<\/p>\n<p>                <span class=\"Apple-converted-space\">\u00a0<\/span> <\/p>\n<p> \u201cThis dynamic is creating a proprietary and differentiated pipeline of strategic investment opportunities,\u201d the letter said, pointing to a 20-billion-euro investment in <\/p>\n<p>                artificial intelligence infrastructure<\/p>\n<p>                 with the French government during the first quarter. <\/p>\n<p> \u201cThe Brookfield ecosystem provides our investment teams with access to deep sector expertise, proprietary insights and global operating capabilities, allowing us to deploy capital quickly and with conviction when others may be constrained,\u201d Flatt and Teskey said. <\/p>\n<p> Canada\u2019s government, too, is looking for private investors as partners, with Prime Minister <\/p>\n<p>                Mark Carney<\/p>\n<p>                 campaigning on a plan to transform the economy and reduce reliance on the United States as a trading partner by using government funds to \u201ccatalyze\u201d $500 billion in new investment over the next five years, with an emphasis on infrastructure. <\/p>\n<p> Brookfield\u2019s participation would undoubtedly attract scrutiny, since Carney was its chair until he left in January to pursue a career in politics. <\/p>\n<p> The Brookfield executives also addressed the <\/p>\n<p>                tariffs<\/p>\n<p>                 unleashed by U.S. President <\/p>\n<p>                Donald Trump<\/p>\n<p>                 in their letter to investors, which was released on the same day Carney is sitting down with Trump for the first time. <\/p>\n<p> Flatt and Teskey said Brookfield\u2019s investments in real assets such as infrastructure, power and real estate, alongside critical business services, will provide some insulation to absorb the impact of tariffs. <\/p>\n<p> \u201cThese businesses operate domestically and serve local demand, making them less exposed to tariffs and other global trade shocks,\u201d the letter said. \u201cMany are also highly contracted or regulated \u2014 characteristics that support durable valuations and liquidity, especially when capital is scarce and investors seek defensive positioning.\u201d <\/p>\n<p> The executives added that many of these assets benefit from inflation-linked revenues and \u201ctariff adjusters\u201d that allow them to pass through rising input costs. <\/p>\n<p> During the COVID-19 pandemic and the inflationary cycle that followed in 2022 and 2023, cash flows across many of Brookfield\u2019s assets kept pace with inflation or, in many cases, exceeded it, the executives said, adding those years also prompted discussions about the deglobalization trend. <\/p>\n<ul class=\"related_links\">\n<li>Why scrutiny of Mark Carney&#8217;s Brookfield ties isn&#8217;t going away any time soon<\/li>\n<li>Michael Wernick: Canada has world-class trade negotiators, but no deal escapes politics<\/li>\n<\/ul>\n<p> \u201cAcross our business, we have proactively diversified parts of our supply chain in anticipation of more protectionist policy shifts,\u201d the letter said.<\/p>\n<p>                <span class=\"Apple-converted-space\">\u00a0<\/span> <\/p>\n<p> \u201cFor example, in our renewables business, where tariffs have been in place for several years, we adopted a domestic procurement strategy in the U.S. supported by long-term agreements with local suppliers. These steps provide important cost certainty and, we believe, position us more favourably than most market participants.\u201d <\/p>\n<p> Flatt said the trade turmoil isn\u2019t expected to hurt Brookfield when it comes to raising capital. <\/p>\n<p> \u201cWhile it would be reckless to diminish the impact of tariffs and what they\u2019ve done to markets, we really don\u2019t see it changing our fundraising trajectory,\u201d he said during a conference call Tuesday morning. <\/p>\n<p> He did not directly answer an analyst\u2019s question about whether the U.S. administration\u2019s protectionist stance would cause Brookfield to change the geographical allocation of its assets, but he said any changes in allocations would be \u201cde minimis and on the margin\u201d in terms of assets. <\/p>\n<p> \u201cWhat we see in terms of allocating capital, we think this actually plays to our strengths. This is going to lead to a focus on energy security, a focus on data security, a\u00a0focus on onshoring and deglobalization,\u201d he said. <\/p>\n<p> \u201cThis requires huge amounts of capital, and as one of the largest managers and custodians of that type of capital around the world, we actually think that this environment \u2026 is going to create an even bigger opportunity for our franchise.\u201d <\/p>\n<p> <em>\u2022 Email: bshecter@nationalpost.com <\/em> <\/p>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em> <\/p>\n\n<br \/>Brookfield plots opportunistic investments amid market dislocation<\/a><br \/>\n<br \/>2025-05-06 15:55:34<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brookfield Asset Management Ltd. has nearly US$120 billion in untapped capital, which chief executive Bruce Flatt said should help the alternative asset manager navigate market dislocation and partner with governments&#8230;<\/p>\n","protected":false},"author":2,"featured_media":59376,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-59374","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/59374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=59374"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/59374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/59376"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=59374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=59374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=59374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}