Turnaround Investing is in Brookfield’s DNA
Our experience as an investor in underperforming companies spans three decades, numerous business cycles and some of the most challenging economic times in recent history.
Since 2001, our turnaround activities have been conducted principally through two private equity funds, Brookfield Special Situations Fund I and Brookfield Special Situations Fund II, which together have deployed $1.6 billion to seek and acquire controlling interests in 15 North American companies. Our capital commitments to these funds totaled in excess of $600 million.
We focus on industries in which we have operating expertise or situations where we have a distinct competitive advantage. We seek companies with high-quality assets whose business models are temporarily impaired and where we can surface value through the application of operating discipline and hands-on turnaround experience.
We favor complex situations and often invest in companies that are in or nearing bankruptcy and have little or no operating earnings at the outset of our involvement. Our philosophy is to implement operating improvements over a three to five year period to achieve top quartile performance and position portfolio companies for sale to strategic purchasers seeking new avenues for growth.
Contrarian thinking produces many of our best investments and broad sourcing capability positions us to deploy capital throughout the economic cycle. We seek mid-market businesses in North America in which we can invest $100 to $250 million over the term of our ownership. Our capital is patient and flexible, enabling us to engage in transactions including direct equity placements and rights offerings, convertible debt financings, asset acquisitions, recapitalizations and sponsorship of reorganizations, in and out-of-court.
Industries of interest include building materials, forest products, homebuilding, metals and mining, oil and gas, paper and packing and industrial manufacturing.
Our Special Situations team is located in offices throughout Canada and the United States.
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