Canadian asset management behemoth Brookfield has risen to be the most active investment firm this year, overtaking private equity giants who have been more cautious. The firm has announced over $50 billion in acquisitions since January, nearly three times the deal volume of Apollo Global Management Inc., EQT AB, and Silver Lake Management. Even compared to KKR & Co., known for its robust deal-making, Brookfield has outshined with its significant public-company takeover bid this year.
This week, Brookfield proposed a $4.3 billion deal for American Equity Investment Life Holding Co., one of the few remaining independent U.S. annuities providers, which could bolster its assets under management to $900 billion. The firm has also initiated two of the three largest takeovers announced by investment firms globally this year. In April, Brookfield's infrastructure division agreed to purchase Triton International Ltd., the world's leading owner of intermodal shipping containers, for $13 billion, including debt. It also took part in a $12 billion deal for Australian utility Origin Energy Ltd. via its energy transition fund in March.
Brookfield's rise coincides with some private equity firms' struggle to finalize buyouts due to volatile financing markets and high price demands from sellers. According to Anuj Ranjan, president of Brookfield Asset Management's private equity business, the scarcity of liquidity is leading to a more disciplined environment. This shift is resulting in many large alternative asset managers focusing on raising new direct-lending funds as the private credit realm flourishes.
CEO Bruce Flatt is building on a busy 2022, which saw Brookfield involved in leveraged buyouts of TV-ratings company Nielsen Holdings Plc and software provider CDK Global Inc. The firm is also not shying away from selling some of its assets, including the exploration of selling a stake in an iconic office tower in Dubai's financial district. Amid all this, Brookfield has been actively raising funds across property, infrastructure, private equity, and credit strategies, aiming to elevate its fee-bearing assets under management to $1 trillion.
