Brookfield Strategic Real Estate Partners IV

Overview

First-pass description is accurate and stands; this pass adds the following corroborated/new details without contradicting anything in it: (1) The underlying fund's Investment Manager is specifically Brookfield Asset Management Private Institutional Capital Adviser US, LLC, a Delaware limited liability company and wholly-owned subsidiary of Brookfield Asset Management Inc. (per the Spire Capital factsheet's defined terms). (2) Fundraising/commencement began Q3 2021, consistent with the 2021 vintage year. (3) Underlying fund economics (secondary-sourced, third-party placement memorandum, not a primary Brookfield document): ~1.5% p.a. management fee on committed capital during a ~4-year commitment period from final close (then on invested capital), 20% carried interest over an 8% IRR preferred return. (4) BSREP IV's own fund-level IRR/TVPI has still not been found in any public source with confidence -- a 2023 Pennsylvania PSERS board document reportedly characterized the fund's return data as "not yet meaningful" as of that point, which is consistent with (and slightly extends) the first pass's note that Brookfield has not disclosed fund-level performance. (5) Brookfield/BPY-side commitment figures ($2.5bn Brookfield aggregate GP-side commitment per the Spire factsheet; $3.5bn BPY commitment with ~$2.3bn uncontributed as of March 2023 per secondary reporting of BPY's SEC 6-K, not independently re-verified this session) add color to, and are broadly consistent with, the first pass's ~23% BPY equity-interest figure. (6) A caution for future readers: a marketing factsheet's headline "24.6%/20.7% gross/net IRR" and "1.7x/1.6x gross/net MOIC" figures describe the CUMULATIVE Brookfield opportunistic-real-estate/BSREP-program track record as of Dec 2021 (i.e., largely predecessor funds), not BSREP IV's own (still-undisclosed) performance -- do not conflate the two. Nothing found in this pass contradicts or undermines any specific fact in the first-pass DESCRIPTION.

Key Facts

Fund type

Real Estate

Vintage year

2022

Strategy

First-pass strategy description stands and is further corroborated (opportunistic/value-add, take-privates/corporate carve-outs/distressed & off-market deals, across office/multifamily/logistics/retail/hospitality/mixed-use/alternatives, Americas/Europe/Australia -- a June 2022 Spire Capital investor factsheet independently confirms these same four investment pillars and adds specific "acquisition approach" categories: Take-Private, Business Building, Multi-faceted, and Distressed). NEW, fee/carry terms (previously NONE_FOUND-adjacent): per that same third-party placement-agent factsheet (not an official Brookfield document, so moderate confidence) -- Underlying (BSREP IV) Management Fee = 1.5% p.a. on committed capital during the Commitment Period (approx. 4 years from Final Close, i.e. roughly through Nov 2026), stepping to 1.5% p.a. on invested capital thereafter; Underlying Performance Fee (carry) = 20% of profits, subject to LPs first receiving an 8% IRR preferred return. IMPORTANT CLARIFICATION on performance figures: BSREP IV's own fund-level IRR/TVPI/MOIC has NOT been found in any public disclosure (a 2023 Pennsylvania PSERS board document reportedly described BSREP IV's return data as "not yet meaningful" at that point, consistent with the fund's short life). The same Spire factsheet displays a headline "24.6%/20.7% current gross/net IRR" and "1.7x/1.6x current gross/net MOIC" -- but on close reading this is the CUMULATIVE historical track record of Brookfield's overall opportunistic real estate strategy/BSREP program as of Dec 31, 2021 (i.e., predecessor funds), NOT a BSREP-IV-specific figure -- flagging this explicitly since it would be easy to misattribute. Predecessor-fund-specific figures disclosed in the same factsheet (context only, not BSREP IV): BSREP I (2012, $4.4B fund): 23%/19% gross/net IRR, 2.5x/2.1x MOIC; BSREP II (2015, $9.0B): 17%/14% IRR, 1.8x/1.6x MOIC; BSREP III (2018, $15.0B): 19%/14% IRR, 1.4x/1.2x MOIC.

Managed by

Brookfield Asset Management

Fund size

USD 17.0B