Societe Generale and Brookfield Asset Management announced a strategic partnership to originate and distribute high-quality private credit investments through a private investment-grade debt fund.
The initial fund is setting its sights on raising a total of EUR10 billion (US$10,739 million) in the coming four years, commencing with an initial seed funding of EUR2.5 billion (US$2,684 million). This comprehensive platform, equipped with both origination and distribution capabilities, is poised to offer customized investment-grade financing solutions to issuers and present investors with distinct, high-quality investment prospects. Specifically, the fund is poised to address the unique requirements of insurance companies by tailoring investment-grade products to align with their credit ratings and desired durations.
Built on the foundation of a robust and longstanding partnership between Societe Generale and Brookfield, this collaboration will leverage the origination strengths, deep operational expertise, and substantial real asset knowledge of both entities. Additionally, it will harness their strong institutional relationships to provide added value to their respective clients and shareholders. Furthermore, this partnership will facilitate Societe Generale and Brookfield's considerable expansion in supporting the global economy by offering substantial commitments with distinctive forms of capital over time. The seed fund will focus on two primary strategies: one centered on credit related to real assets encompassing sectors such as power, renewables, data, midstream, and transportation, and another focused on fund finance.