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Investors have piled into a bond and loan deal that will hand private equity giant Brookfield a huge $4.5bn dividend, overcoming fears from some money managers that Donald Trump could torpedo a tax break for the company issuing the debt.

The $5bn capital raise will be a boon to investors in Brookfield funds, given that private equity firms have struggled to exit investments and return cash to their limited partners over the past three years.
Brookfield’s investors, including CDPQ, will receive a total of $4.5bn in dividends from Clarios — about 1.6 times their original $2.9bn equity investment when they bought the company from industrial conglomerate Johnson Controls in 2019, according to people briefed on the matter.

https://www.ft.com/content/c9b9155b-c09e-485f-8c24... (subscription required)

https://finance.yahoo.com/news/brookfield-backed-c...

this seems pretty typical for when brookfield notches a win when having control stake.
first, they buy cheap, second they bring 'enough' operational improvements.
third, also like the westinghouse case, they buy into a secular trend during cyclical pessimism.

it's too difficult to predict what trump\MAGA may end up doing, especially if there is nothing in it for friends&family.
but more resilience is great.

on a sidenote: it was also impressive that brookfield recently abandoned pursuit of grifols, for anyone familiar with that company's long disastrous capital allocation history and current situation.

I can’t see beyond the FT paywall.

Is there a simple description of what this payment is (I understand it’s a whopping dividend payment) and how it came about?

As a BN/BAM holder it has my attention.

Thank you in advance.

m

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