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Brookfield seeks USD 12.5bn for seventh flagship PE fund

  • New target exceeds USD 12bn raised for Fund VI
  • Fund will focus on global industrials and adjacent services sectors
  • GP commitment of USD 3.5bn

Brookfield Asset Management has launched fundraising for its seventh flagship private equity fund, according to two sources familiar with the matter.

The sponsor is targeting USD 12.5bn for Brookfield Capital Partners VII, the sources said, with one adding that it will include a USD 3.5bn GP commitment. This would surpass the USD 12bn raised by the firm’s Fund VI, which closed in October 2023 and was the global manager’s largest PE fund to date.

Brookfield said on its 2Q25 earnings call that it was expecting to launch fundraising for its latest flagship before the end of the year.

Fund VII will predominantly focus on investments in global industrials and adjacent services sectors, said one of the sources. Brookfield’s PE strategy typically targets upper mid-market industrials and services companies presenting operational improvement opportunities, with a particular emphasis on carve-outs.

Brookfield’s Fund VI was around 60% deployed as of last month, Mergermarket previously reported. Recent investments include the acquisition of heat-tracing manufacturer Chemelex in February, the purchase of GTCR-backed life sciences business Antyllia Scientific in May, and the proposed USD 2.1bn take-private of Canadian mortgage business First National Financial Corporation, alongside Birch Hill. Fund VI posted a net internal rate of return of 17% as of 30 June 2025, according to a regulatory filing.

Brookfield has returned USD 10bn in distributions to its LPs in the last two years, according to a recent investor presentation. Recent realizations include a USD 4.5bn dividend recapitalization for Clarios, a US lead-acid automotive battery supplier, which was among the largest such transactions executed, according to Debtwire.

The launch of Brookfield’s Fund VII comes as its PE strategy also readies a new evergreen product. The fund will be registered as a 34 Act Private Fund that will invest directly in companies alongside Brookfield’s closed-end vehicles in buyout control investments and structured non-control investments, as reported previously by Mergermarket.

Brookfield declined to comment.