Real Assets
Accessing Liquidity Across the Life Cycle of a Private Fund
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Mar 04, 2025
We believe listed real assets play a crucial role in portfolios by providing liquidity throughout the life cycle of a private real assets fund.
Given that private investments often have limited liquidity due to a multi-year lock-up of investor capital, listed real assets can be used to meet the evolving cash flow requirements of private investments. With their daily liquidity, listed real assets can enable capital to remain invested and generate returns while still being available for capital calls and cash recycling.
During a fund's ramp-up period, when underlying assets are being sourced and acquired, public portfolios can be quickly constructed to provide immediate exposure to real assets as well as operating cash to fund near-term capital requirements. Then, during the early years of a private fund’s investment period, before the value creation or realization phase, listed real assets can provide an interim solution to preserving capital and earning income. Finally, as older private investments are realized and cash is returned, distributed capital can be immediately deployed into listed real assets to maintain real asset exposure and potentially enhance returns.
At Brookfield Public Securities Group (PSG), our investment teams manage a range of liquidity portfolios on behalf of clients seeking to complement their private investments, with potential solutions throughout the life cycle of a private fund illustrated in the graphic below.
Having allocated across public and private real assets for decades, we believe our investment teams at PSG are well-positioned to understand the value proposition of including a listed allocation alongside private exposures. Our client-centric solutions approach begins with understanding our clients’ needs and ensures our solutions evolve as those needs change.
Risk Disclosure
All investing involves risk. The value of an investment will fluctuate over time, and an investor may gain or lose money, or the entire investment. Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs, high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability and energy conservation policies. All real estate investments, ranging from equity investments to debt investments, are subject to some degree of risk. Fixed income risks include interest rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Real assets include real estate securities, infrastructure securities and natural resources securities. Diversification does not assure a profit or protect against loss in declining financial markets.
Bond ratings are grades given to bonds that indicate their credit quality as determined by private independent rating services such as Standard & Poor’s, Moody’s and Fitch. These firms evaluate a bond issuer’s financial strength or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from AAA, which is the highest grade, to D, which is the lowest grade. Credit ratings are subject to change.
Important Disclosures
©2025 Brookfield Public Securities Group LLC (“PSG” or “the Firm”) is an indirect wholly owned subsidiary of Brookfield Asset Management Ltd. and Brookfield Corporation ("Brookfield"). Brookfield Public Securities Group LLC (“PSG”) is an SEC-registered investment adviser and is registered as a portfolio manager in each of the provinces and territories of Canada and represents the Public Securities Group of Brookfield Corporation, providing global listed real assets strategies including real estate equities, infrastructure equities, multi-strategy real asset solutions and real asset debt. PSG manages separate accounts, registered funds and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and high- net-worth investors. PSG is an indirect, wholly owned subsidiary of Brookfield Corporation, a leading global alternative asset manager.
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