Brookfield Nets 18% on Colombia Asset Sale to Affiliate, #Qatar - Bloomberg

Brookfield Nets 18% on Colombia Asset Sale to Affiliate, Qatar - Bloomberg

A Brookfield Asset Management infrastructure fund is generating a return of 18% by selling a stake in a renewable power company in Colombia to investors led by an affiliate of the New York-based investment firm, according to people familiar with the matter.

Managers at Brookfield Infrastructure Fund III told investors Friday they had reached an agreement to exit the asset via a sale to a consortium led by Brookfield Renewable Partners and the Qatar Investment Authority, in a deal that will deliver about $1.4 billion or 3.3 times gross multiple of invested capital, according to the people, who asked not to be identified discussing private information.

Brookfield Renewable in a statement said that it would invest as much as $1 billion to increase its stake in Isagen to roughly 38%. QIA, an existing co-investor, will contribute around $500 million to boost its equity interest to approximately 15%. Given the related-party nature of the transaction, the deal required approval from BIF III’s Limited Partners Advisory Committee, the people said.

The transaction is expected to close in the third quarter of 2025. A representative for Brookfield declined to comment.

The move allows Brookfield to recycle capital from its 10-year private vehicle into a publicly traded, perpetual capital platform. The investment, which will contribute to the funds from operations of Brookfield Renewable, will be structured through a combination of non-recourse financing at the business level and available liquidity, it said.

Brookfield acquired control of Isagen in 2016 through BIF III, shortly after holding the final close on the fund that same year. With $14 billion in equity commitments, BIF III was the largest private infrastructure fund in the industry at the time, Brookfield said. BIF III is exiting Isagen after Moody’s Ratings and S&P Global Ratings downgraded Colombia’s credit rating following a move by the government to suspend the nation’s fiscal rule for three years in a bid to avoid spending cuts.

Brookfield committed $4 billion of its own capital to BIF III through its infrastructure and renewable platforms, ensuring alignment with over 120 institutional investors, including pension funds, sovereign wealth funds, endowments, and family offices. The fund surpassed its original $10 billion target.

Headquartered in New York, Brookfield manages more than $1 trillion in assets across infrastructure, renewable power, private equity, real estate and credit. The firm invests through public and private vehicles and often commits alongside clients.