Any remaining units after that window will be redeemed at full NAV.
David Levi, CEO of Brookfield’s global client group, signalled the strategy last September, stating, “We are tailoring our private equity capabilities for wealth… This is something we’re super, super excited about,” as quoted by The Globe and Mail.
Anuj Ranjan, CEO of Brookfield Business Partners, said the deal “provides a strong outcome for Brookfield Business Partners’ unitholders and shareholders” and offers the new fund a ready-made seed portfolio.
He added that the transaction allows the firm “to continue to accelerate the return of capital under current and future buyback programs, reinvest in the growth of the business and reduce corporate leverage.”
According to the company, the sale also provides a liquidity event for Brookfield’s existing private equity assets while funding strategic goals such as debt repayment and reinvestment.