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Law360 (May 7, 2020, 3:49 PM EDT ) Brookfield Asset Management Inc. on Thursday revealed plans for a $5 billion program focused on providing capital to retail businesses that are struggling in the economic turmoil caused by the coronavirus pandemic.
The Retail Revitalization Program from Canada-based Brookfield aims to help with the recapitalization of retail companies that have operations in the major markets in which Brookfield operates across the globe, according to a statement. The money will come from Brookfield and its institutional partners, and the program will target noncontrol investments in retail companies that have been in business for at least two years and have $250 million or more in normalized revenues.
Ron Bloom, managing partner and vice chairman of Brookfield's private equity division, will lead the program. Bloom previously served in a leadership role for former President Barack Obama's task force on the automotive industry in the aftermath of the 2008 global financial crisis, according to a statement from July 2009.
"This initiative is being designed to assist medium-sized enterprises in getting back on their feet," Bloom said in Thursday's press release. "We believe this is a critical component to getting the economy moving again, and we would like to partner with companies and entrepreneurs that can draw on our capital and expertise to stabilize and grow their business."
Brookfield plans to contribute more than just capital as it tries to help the retail industry remain afloat as the world grapples with the COVID-19 outbreak. The firm said it also intends to provide expertise to the companies in which it invests, with a focus on supporting long-term business performance.
No specific targets were disclosed, and it was not clear when Brookfield will start making investments from the $5 billion program. A representative for the firm did not immediately respond to a request for further information Thursday.
Brookfield Asset Management has a total of more than $515 billion worth of assets under management across sectors including real estate, infrastructure, renewable power, private equity and credit. The firm's institutional investors include public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and wealthy individuals.
Thursday's announcement comes less than a month since Brookfield pledged $500 million to Fundamental Income, an exchange-traded fund sponsor, to help the company launch a net lease platform that will invest in single-tenant properties that are leased to midsize businesses. Brookfield was steered in that deal, announced April 22, by Latham & Watkins LLP.
Counsel information for the new $5 billion retail program was not immediately available Thursday.
--Additional reporting by Elise Hansen. Editing by Stephen Berg.
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