Brookfield raises $28bn for largest-ever infrastructure fund: Impact on Energy IB Groups?

Infrastructure as an asset class is increasingly attractive to institutional investors in this inflationary and interest-rate environment. This could signal record fundraising milestones from MFs like KKR and GIP next year. I'm curious about deal flow in energy groups across investment banks. What are you seeing at your bank?

Source: Financial Times

 

Based on the most helpful WSO content, the energy sector in investment banking has been experiencing some shifts. For instance, Evercore's upstream practice took a hit when Finnie retired, and his successors haven't been as successful. Pacha and Strong are still performing well, but there hasn't been much activity on the midstream side.

Moelis, on the other hand, has always been a strong RX shop, but they've had to work hard during M&A season. They didn't close a deal last year, but when oil prices crash again, they're expected to bring in significant fees and give the MDs a few more years of leeway.

As for the impact of Brookfield's record-breaking infrastructure fund, it's hard to say without more specific information. However, it's clear that the energy sector is in a state of flux, and this could create opportunities for investment banks that are able to adapt and seize new opportunities.

Remember, the energy sector is just one piece of the puzzle. Infrastructure investment also includes areas like real estate and timber, and diversified asset managers like KKR and EQT Infrastructure are also making significant moves in this space.

So, while it's an interesting time for energy investment banking groups, it's also a time of great opportunity for those who can navigate the changing landscape. Keep your eyes peeled, and don't be afraid to swing from branch to branch to find the ripest opportunities!

Sources: https://www.wallstreetoasis.com/forum/investment-banking/best-energy-investment-banking-groups?customgpt=1, Overview of Infrastructure Private Equity

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

I do mainly gas power and energy power plants but have also done renewables. Deal flow has been good this year especially when compared to other banks and groups that seemed to have it rough the past few years. Good to know about Brookfield fund though definitely going to keep tabs on that

 

Awesome! It's good to know that deal flow has been good this year. This confirms why I have been seeing banks such as JPM, Moelis, BNP Paribas, and TD put out openings for associate and VP roles in recent times; I'm just wondering if they are actual roles or if HR is trying to keep the LinkedIn page active.

 

Didn't blackstone have plans to raise a $50 billion infra fund back in 2017? Never heard much after that. I do wonder about their ability to deploy all of this capital in a universe of finite assets. I'm especially curious about this raise given that they also just launched their second energy transition fund (focused on emerging markets). They were already playing fake musical chairs when the Energy Transition Fund v1 bought Westinghouse from Brookfield Business Partners.  They also closed on v1 of the Energy Transition Fund just last year.

I know that there's a lot of buzz/interest in infra but how are LPs ok with this and seemingly receptive and generous in chipping in for these new funds? What am I not understanding?

 

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