Brookfield Asset Management expects India property to swell to $100 billion in 5 years | Company Business News

Mumbai: Brookfield Asset Management expects its India portfolio to develop to $100 billion over the following 5 years, surpassing the expansion fee of its world property, a senior government mentioned on Thursday.

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Headquartered in New York, Brookfield manages over $1 trillion in property throughout renewable energy and transition, infrastructure, non-public fairness, actual property and credit score. Connor Teskey, president, Brookfield Asset Management, informed reporters he expects the worldwide portfolio to greater than double in 5 years.

In India, its property beneath administration (AUM) are at $30 billion, which Teskey mentioned he expects to succeed in $100 billion. This implies a quicker development fee of property than the general portfolio. While a majority of this growth would come by means of inorganic means, the general development can be a mixture of that and extra investments.

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“It (India) is a large and growing economy. It has a fantastic depth of talent,” mentioned Teskey, who, in response to information stories, is anticipated to succeed chief government Bruce Flatt.

Bloomberg reported in July 2024 that it’s an open secret in Brookfield’s high echelons that Flatt is making ready Teskey to succeed him on the high of the agency.

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Big alternative

He believes there is no such thing as a restrict to the size of alternative in India, and Brookfield is development throughout all the main infrastructure asset courses. India, he mentioned, is quickly constructing out its infrastructure. In a world the place world corporates wish to make their provide chains extra resilient and are shifting away from a single provider mannequin to a number of provider factors, India appears to be the beneficiary of all of these traits, he mentioned.

“We are very much looking at digital infrastructure. We are very much looking at transportation infrastructure. We look at utilities. And we also look at midstream and power generation as well,” mentioned Teskey, who joined Brookfield in 2012.

“We are long-term investors. We take a long-term approach, and by definition, we are investing in long-term assets.”

Of the $30 billion portfolio in India, $12 billion every is in infrastructure and actual property, whereas renewable energy and transition, and personal fairness and Brookfield particular investments are at $3 billion and $3.6 billion, respectively. These embrace India’s longest privately-owned cross-country fuel pipeline of 1,480km; over 55 million sq. toes throughout the highest 9 workplace markets in India; about 43GW of wind and photo voltaic property in operation or in growth, apart from others.

“The focus for us in every market around the world, in terms of putting capital to work, is that we like markets with stability and we like markets with long duration demand trends. In most asset classes and most sectors in India, you absolutely have those,” mentioned Teskey.

He mentioned rates of interest in India are very constructive, capital markets are more and more liquid, and demand may be very enduring, each domestically and more and more from a global demand level.

According to him, Brookfield desires to personal high-quality, vital property in markets with robust tailwinds. Teskey mentioned that Brookfield’s returns in India have been “very robust”, on the again of “tremendous tailwinds and robust macroeconomic backdrop that India has benefited from in recent years and will continue to benefit from going forward”.