Brookfield in talks with Canadian pensions to create new $50B fund for domestic assets – The Logic
Brookfield in talks with Canadian pensions to create new $50B fund for domestic assets
Brookfield in talks with Canadian pensions to create new $50B fund for domestic assets – The Logic
Brookfield in talks with Canadian pensions to create new $50B fund for domestic assets
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Here is my comment from 9 days ago when Carney because the economic advisor to Trudeau.
> Is there any information about how much Brookfield is involved with managing federal assets, such as the office buildings the Feds are now so eager to fill?
> Before Carney, this government had Dominic Barton, former McKinsey head, as Chair of Canada’s Advisory Council for Economic Growth.
> This is after McKinsey’s business with the government seen from under a million dollars a year to over $50 million a year. It’s been found that the federal government flouted the rules to ensure McKinsey got some of this work. Some of that work involved advising the government to increase immigration numbers, which is interesting seeing as Barton is a cofounder of the Century Initiative.
> After all that Barton was then appointed by this government to be the ambassador to China. Because of course he was.
> **It will be interesting to see if there is enough time left with this government for similar situations to develop with Brookfield.**
Hot damn, that was fast.
The proposal is a $50 billion investment fund where $10 billion is straight cash from the federal government (new debt, naturally) and much of the remaining balance is proposed to be public pension money.
I guess it was inevitable that Carney and Brookfield would shoot their shot while they have Carney telling the PM what to do like a fox in the henhouse, but I didn’t think it would happen this soon.
Relatively speaking, Brookfield’s deal flow in Canada has been almost non-existent for several years. They are delusional if they think they can suddenly deploy $50B here. There are several reasons for this but chief among them is that Canadian pensions are already really, really good at identifying opportunities and have a lower cost of capital than Brookfield.