Brookfield Asset Management has loads of dry powder, and it’s looking for deal opportunities. The Toronto-based firm has more than $110 billion to invest, and there’s no better time to be a value investor, according to Anuj Ranjan, managing partner and head of business development at Brookfield. Ranjan said in a recent interview the current economic environment “actually limits competition and creates a ton of opportunity.” Brookfield has already invested about $30 billion in the past 18 months, including acquisitions of U.K. household repairs provider HomeServe Plc and a stake in Deutsche Telekom AG’s towers unit.
This isn’t the first time Brookfield has made significant investments during times of economic trouble. After the financial crisis of 2008-2009, the company increased its real estate exposure by buying into mall operator General Growth Properties. Brookfield isn’t hinting at what they could acquire soon, but in real estate, companies that could be acquired cheaply right now include office and retail REITs, both of which have struggled post-pandemic.
Brookfield is one of the biggest commercial landlords in several major markets, including New York City, where its portfolio includes One Manhattan West. However, one hitch for the firm has been its confusing corporate structure, as Brookfield generally relies on subsidiaries to generate fees for its parent company.
Brookfield Property Partners went private last year, and the firm is also looking to spin off its asset management business. According to reports, Brookfield plans to create an entity controlling its fee-generating assets, including real estate, private equity, and renewable energy. Chief executive Bruce Flatt said spinning off these assets could create a company worth up to $100 billion.