Brookfield Infrastructure Partners

Last updated
Brookfield Infrastructure Partners L.P.
Company type Public
NYSE:  BIP
TSX:  BIP.UN
NYSE:  BIPC
TSX:  BIPC
Industry Infrastructure asset management
FoundedJanuary 14, 2008;16 years ago (2008-01-14)
Headquarters,
Canada
Area served
Worldwide
Key people
Sam Pollock (CEO)
Products Utilities, transport, energy, communications, infrastructure
RevenueIncrease2.svg US$3.54 billion (2017) [1]
Decrease2.svg US$1.1 million (2017) [1]
Increase2.svg US$574 million (2017) [1]
Total assets Increase2.svg US$29.5 billion (2017) [1]
Total equity Increase2.svg US$13.5 billion (2017) [1]
Owner Brookfield Asset Management (30%)
Website bip.brookfield.com
Footnotes /references
[2]

Brookfield Infrastructure Partners L.P. is a publicly traded limited partnership with corporate headquarters in Toronto, Canada, that engages in the acquisition and management of infrastructure assets on a global basis.

Contents

Until a spin-off in January 2008, Brookfield Infrastructure was an operating unit of Brookfield Asset Management, which retains a 30 percent ownership and acts as the partnership's general manager. [3] The company's assets carried a book value of US$21.3 billion, on December 31, 2016. [4]

In March 2020, Brookfield Infrastructure Partners (BIP) created Brookfield Infrastructure Corporation (BIPC), an entity that provides certain institutional investors who cannot hold a Bermuda-based Limited Partnership the ability to access the portfolio of BIP assets. In addition, by issuing eligible dividends rather than partnership distributions, BIP felt that BIPC would provide a more attractive and favourable tax treatment for retail investors. [5] BIPC began trading on the Toronto and New York Stock Exchanges on March 31, 2020.

Brookfield Infrastructure Partners owns and operates a global network of infrastructure companies in utilities, transportation, energy and communications infrastructure. It invests in transmission and telecommunication lines, toll roads, ports and pipelines. The company has an equity market capitalization of about US$17.7 billion with an investment-return target of 12 to 15 percent. [1] [6] Its annualized total returns since inception have been 18% on the NYSE and 26% on the TSX. [4]

Sam Pollock is the chief executive officer of Brookfield Infrastructure Partners. [7] He has held this position since 2006, and has been with Brookfield Asset Management since 1994. [8]

Operations

After the spin-off from Brookfield Asset Management, Brookfield Infrastructure operated timber properties and electricity transmission lines. In September 2008, the company announced it would expand and diversify its global operations by buying infrastructure holdings from distressed Babcock & Brown, thus adding approximately US$8 billion of assets under management. [9] [10]

In 2010 the company completed a merger with Australian company Prime Infrastructure in which it held a minority interest. [11]

In 2012, the company participated in a joint venture with Spain's Abertis Infraestructuras to purchase 60 percent of toll operator Obrascon Huarte Lain Brasil in a deal valued at US$1.7 billion. [12]

Also in 2012, the company and its partners agreed to acquire the remaining 45% of the AVN toll road in Chile for a total purchase price of $590-million, after making an initial investment in 2011. [13]

In 2014, the company and its investment partners agreed to acquire 50% of the French telecommunications units of TDF for $2.2 billion. [14]

In 2016, the company announced agreements with Qube Holdings and other investment partners to buy the port assets of Asciano Limited, an Australian rail and port operator, for US $6.55 billion, (A$8.9 billion). [15] The container port assets remained under the Patrick brand in a joint venture with Qube, while the bulk and automotive port services assets rebranded to Linx Cargo Care Group under a Brookfield-led consortium of investment partners. That same year, the company also announced that it and its investment partners would acquire a 90% stake in a Brazilian natural gas pipeline from Petroleo Brasileiro SA for US $5.2 billion. [16]

The company made over $2 billion of new investments in 2016, including its first ventures into businesses in Peru and India. The company also invested in organic projects valued at $850 million, growing the size of its utilities rate base, road and rail networks and energy systems. [17] [18]

In 2022, the company announced an initiative with Intel to jointly invest up to $30 billion at a chip manufacturing plant in Chandler, Arizona. [19]

As of December 31, 2022, BIP declared majority ownership and/or controlling voting interest in the following companies: [20]

CountryCompanySectorEffective OwnershipVoting Interest
Australia Arc Infrastructure WA Pty Ltd Rail transport 100%100%
Australia Linx Cargo Care Group Pty Ltd Port operations 27%67%
AustraliaRuby Pooling Hold Trust Data centres 29%100%
BrazilNova Transportadora do Sudeste S.A. ("NTS") [21] Energy Infrastructure 31%92% [22]
CanadaEnercareHome and commercial energy services26%100%
Canada Inter Pipeline Ltd. Energy Infrastructure56%100%
CanadaNorthRiver Midstream Inc.Energy Infrastructure29%100%
CanadaWarwick Gas Storage L.P.Energy Infrastructure25%100%
ColombiaVanti S.A. ESPEnergy Infrastructure21%75%
GermanyThermondo GmbH Residential energy infrastructure 11%51%
IndiaCrest Digitel Private Ltd Telecommunications 17%62%
IndiaPipeline InfrastructureEnergy Infrastructure21%75%
IndiaRayalseema Expressway Private Limited Toll Roads 29%95%
IndiaSimhapuri Expressway LtdToll Roads29%95%
IndiaSummit Digitel Infrastructure Private LtdTelecommunications17%62%
PeruRutas de Lima S.A.C. [23] Toll roads17%57%
SingaporeBIF India Holdings Pte LtdToll roads40%93%
United KingdomBOXT LtdResidential infrastructure15%60%
United KingdomBrookfield Port Acquisitions (UK) LtdPort Operations59%100%
United KingdomBUUK Infrastructure No 1 LimitedEnergy Infrastructure80%80%
United KingdomWIG Holdings I LimitedData Centres24%98%
United StatesDawn Acquisitions LLCData Centres29%100%
United States [a] Genesee & Wyoming [24] Rail Transport9%72%
United StatesLodi Gas Storage LLCEnergy Infrastructure40%100%
United StatesRockpoint Gas Storage Partners L.P.Energy Infrastructure40%100%

The following table lists prior acquisitions by BIP:

CountryCompanySectorOwnership
Australia Asciano Limited [25] Rail and port logistics 50% [26]
BrazilArteris, SA [27] Toll roads50% [28]
BrazilVLI [29] Transmission 26.5%
BrazilOdoya Transmissora de Energia S.A.
Esperanza Transmissora de Energia S.A.
Jose Maria de Macedo de Eletricidade S.A
Giovanni Sanguinetti Transmissora de Energia S.A.
Veredas Transmissora de Eletricidade S.A.
Transmission 31%
Canada Enwave District energy
CanadaMetergy Solutions Utility submetering
Chile Transelec [30] Energy Transmission 30%
FranceTDF [28] Communication tower infrastructure50%
North America (Canada and USA)Niska Gas Storage [31] Gas storage100% [32]
United States Natural Gas Pipeline Company of America [33] Gas storage and transmission 50%

Notes

a. ^ Although headquartered in the United States, Genesee & Wyoming also has rail and logistics operations in Canada, the U.K., and continental Europe.

Related Research Articles

Westinghouse Electric Company LLC is an American nuclear power company formed in 1999 from the nuclear power division of the original Westinghouse Electric Corporation. It offers nuclear products and services to utilities internationally, including nuclear fuel, service and maintenance, instrumentation, control and design of nuclear power plants. Westinghouse's world headquarters are located in the Pittsburgh suburb of Cranberry Township, Pennsylvania. Brookfield Renewable Partners, a Canadian private equity fund and a subsidiary of Brookfield Asset Management is the majority owner of Westinghouse.

<span class="mw-page-title-main">Brookfield Corporation</span> Canadian asset management company

Brookfield Corporation is a Canadian multinational company that is one of the world's largest alternative investment management companies, with over US$725 billion of assets under management in 2022. It focuses on direct control investments in real estate, renewable power, infrastructure, credit and private equity. The company invests in distressed securities through Oaktree Capital, which it bought in 2019. Brookfield's headquarters are in Toronto.

<span class="mw-page-title-main">Blackstone Inc.</span> American alternative investment company

Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth equity. As of May 2024, Blackstone has more than US$1 trillion in total assets under management making it the largest alternative investment firm globally.

Patrick Corporation is an Australian seaport operator with operations in Brisbane, Fremantle, Melbourne and Sydney. Formerly listed on the Australian Securities Exchange, it is owned by Brookfield Asset Management and Qube Holdings.

<span class="mw-page-title-main">Perella Weinberg Partners</span> U.S.-based financial services firm

Perella Weinberg Partners is an American global financial services firm focused on investment banking advisory services.

Silver Lake, legally Silver Lake Technology Management, L.L.C., is an American global private equity firm focused on technology and technology-enabled investments. Silver Lake is headquartered in Silicon Valley and New York, and has offices in London, Hong Kong, and Singapore.

<span class="mw-page-title-main">Asciano Limited</span> Former Australian logistics company

Asciano Limited was an Australian freight logistics company, operating in railway freight and shipping. Asciano was demerged from Toll Holdings in 2007, and owned Patrick Corporation and Pacific National as subsidiary companies. Asciano specialised in bulk and container shipping and transportation, with port and train operations across Australia. It had over 8,000 employees. It was an ASX 50 company.

Access Industries, Inc. is a British-American privately held multinational industrial group. It was founded in 1986 by businessman Leonard "Len" Blavatnik. Access Industries' focus is in four areas: natural resources and chemicals, media and telecommunications, venture capital and real estate. The group invests in the United States, Europe, Israel, and Latin America. It is headquartered in New York and London with additional offices in Moscow.

<span class="mw-page-title-main">Apollo Global Management</span> American private equity company

Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors.

<span class="mw-page-title-main">Macquarie Group</span> Australian investment bank and financial services company

Macquarie Group Limited is an Australian global financial services group. Headquartered and listed in Australia, Macquarie employs more than 20,000 staff in 34 markets, is the world's largest infrastructure asset manager and Australia's top ranked mergers and acquisitions adviser, with more than A$871 billion in assets under management.

The Canada Pension Plan Investment Board, operating as CPP Investments, is a Canadian Crown corporation established by way of the 1997 Canada Pension Plan Investment Board Act to oversee and invest the funds contributed to and held by the Canada Pension Plan (CPP).

Lexington Partners is one of the largest manager of secondary acquisition and co-Investment funds in the world, founded in 1994. Lexington manages approximately $55 billion of which an unprecedented $14 billion was committed to the firm's ninth fund, the largest dedicated secondaries pool of capital ever raised at the time.

<span class="mw-page-title-main">Qatar Investment Authority</span> Sovereign wealth fund of Qatar

The Qatar Investment Authority is Qatar's sovereign wealth fund. The QIA was founded by the State of Qatar in 2005 to strengthen the country's economy by diversifying into new asset classes. In October 2023, the QIA has an estimated $475 billion of assets under management.

Partners Group Holding AG is a Swiss-based global private equity firm with US$147 billion in assets under management in private equity, private infrastructure, private real estate and private debt.

Brookfield Renewable Partners L.P. is a publicly traded limited partnership that owns and operates renewable power assets, with corporate headquarters in Toronto, Ontario, Canada. It is 60% owned by Brookfield Asset Management.

<span class="mw-page-title-main">Qube Holdings</span> Australian logistics company

Qube Holdings is a diversified logistics and infrastructure company in Australia.

<span class="mw-page-title-main">Russian Direct Investment Fund</span> Fund established by the Russian government in June 2011

The Russian Direct Investment Fund is Russia's sovereign wealth fund established in 2011 by the Russian government to make investments in companies of high-growth sectors of the Russian economy. Its mandate is to co-invest alongside the world's largest institutional investors, direct investment funds, sovereign wealth funds and leading companies.

Brookfield Property Partners L.P. is a global commercial real estate firm that is a publicly traded limited partnership and a subsidiary of Brookfield Asset Management, an alternative asset management company. Its portfolio includes properties in the office, multi-family residential, retail, hospitality, and logistics industries throughout North America, Europe, and Australia. Its subsidiary Brookfield Properties is responsible for the management of these facilities.

Sixth Street is a global investment firm with around $75 billion in assets under management. The firm operates nine investment platforms across its growth investing, adjacencies, direct lending, fundamental public strategies, infrastructure, special situations, agriculture and par liquid credit businesses. Sixth Street invests in the equity and debt of public and private companies, acquires real estate, finances infrastructure projects, and provides start-up capital to new businesses. Sixth Street has been noted in the financial media for the unusual structure of its largest fund, which is open-ended and able to hold longer-term investments.

<span class="mw-page-title-main">Antin Infrastructure Partners</span>

Antin Infrastructure Partners is a private equity firm with offices in Paris, London, New York, Luxembourg and Singapore. It has EUR 30.6 billion in assets under management as of December 2022. Antin invests in the energy & environment, digital technology, transportation, and social infrastructure sectors.

References

  1. 1 2 3 4 5 6 "2017 Annual Report" (PDF). Brookfield. 31 December 2017. Retrieved 27 June 2018.
  2. "2016 Annual Report" (PDF). Brookfield Infrastructure Partners. 31 December 2016. Retrieved 14 May 2017.
  3. "Brookfield Infrastructure Partners (BIP): A High-Yield, Fast-Growing Utility". ValueWalk. 2017-03-13. Retrieved 2017-05-14.
  4. 1 2 "2016 Brookfield Infrastructure Annual Report" (PDF). 31 December 2016. Retrieved 14 May 2017.
  5. "Questions and answers regarding the special distribution of Brookfield Infrastructure Corporation shares". SEDAR. November 13, 2019.
  6. Sanzillo, Tom; Chung, Yulanda; Buckley, Tim (February 2017). "Making the case for Norwegian Sovereign wealth fund investment in renewable energy infrastructure" (PDF). IEEFA.org. Institute for Energy Economics and Financial Analysis. Retrieved 14 May 2017.
  7. Editorial, Reuters. "Stock Quotes & Company News". Reuters. Retrieved 2017-05-14.{{cite web}}: |first= has generic name (help)
  8. "Our Manager". Brookfield Infrastructure Partners. Archived from the original on 21 March 2016. Retrieved 12 April 2016.
  9. "Brookfield Asset Management and Brookfield Infrastructure Partners Completes Recapitalization of Babcock & Brown Infrastructure". Marketwire. Retrieved 22 July 2010.
  10. Lindsay, Bill (9 October 2009). "Babcock & Brown Infrastructure Sets Plan". The Wall Street Journal. Retrieved 22 July 2010.
  11. "Brookfield Infrastructure Announces Closing of Merger With Prime Infrastructure and Implementation of Normal Course Issuer Bid" . Retrieved 2017-05-14.
  12. "Brookfield Infrastructure bets on Brazil". Financial Post. Retrieved 2017-05-15.
  13. "Brookfield Infrastructure retooling its portfolio". The Globe and Mail. Retrieved 2017-05-15.
  14. "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 2017-11-06. Retrieved 2017-05-15.
  15. Wells, Peter (2016-03-14). "Qube and Brookfield consortium snare Asciano". Financial Times. Retrieved 2017-05-15.
  16. "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B - Article - BNN". BNN. 2016-09-23. Retrieved 2017-05-15.
  17. Lawlor, John (2017-02-15). "Brookfield Infrastructure Partners Firing On All Cylinders". Seeking Alpha. Retrieved 2017-05-15.
  18. DiLallo, Matthew (2017-05-15). "Energy Acquisitions Fuel Brookfield Infrastructure Partners L.P.'s Fourth-Quarter Results -- The Motley Fool". The Motley Fool. Retrieved 2017-05-15.
  19. "Intel Introduces First-of-its-Kind Semiconductor Co-Investment Program". Intel. Retrieved 2022-08-24.
  20. "2022 Annual Report" (PDF). Brookfield Infrastructure Partners.
  21. "Brookfield Infrastructure Announces Closing of South American Natural Gas Transmission Utility Transaction". Market Watch. 4 April 2017. Archived from the original on 8 April 2017. Retrieved 14 May 2017.
  22. "Brookfield-led group buys stake in Petrobras's NTS for US$5.2B". BNN. 23 September 2016. Retrieved 14 May 2017.
  23. "Odebrecht sells 57% of Rutas de Lima to Brookfield". Valor International. 27 June 2016. Retrieved 14 May 2017.
  24. Genesee & Wyoming sold in $8.4 billion deal Archived 2019-07-01 at the Wayback Machine Trains July 1, 2019
  25. Wells, Peter (15 March 2016). "Qube and Brookfield consortium snare Asciano". Financial Times. Retrieved 14 May 2017.
  26. Wiggins, Jenny (15 March 2016). "Asciano board recommends formal $9.05b takeover bid from Qube and Brookfield". The Sydney Morning Herald. Archived from the original on 26 May 2017. Retrieved 14 May 2017.
  27. Bowen, Mick (19 May 2016). "Abertis, Brookfield boost stake in Arteris". Latin Finance. Retrieved 14 May 2017.
  28. 1 2 "Canada's Brookfield buys 50 pct of TDF's French unit". Reuters. 6 November 2014. Retrieved 14 May 2017.
  29. "Vale to sell some VLI shares to Brookfield for $842 mln". Reuters. 23 December 2013. Retrieved 14 May 2017.
  30. Biller, David (3 July 2006). "Brookfield-led consortium completes Transelec takeover". BNamericas. Retrieved 14 May 2017.
  31. "Niska Gas Storage to Be Acquired by Brookfield in $911.9M Deal (NKA) (BIP)". Street Insider. 15 June 2015. Retrieved 14 May 2017.
  32. "Niska Gas Storage Partners LLC Agrees To Be Acquired By Brookfield Infrastructure". Yahoo Finance News. 15 June 2015. Retrieved 14 May 2017.
  33. DiLallo, Matthew (26 September 2016). "Brookfield Infrastructure Partners L.P.'s Best Business Segment in 2016 so far". District Energy. Retrieved 14 May 2017.[ permanent dead link ]