Brookfield Asset Management’s Public Securities Group is to acquire Center Coast Capital Holdings,, an affiliate of Center Coast Capital Advisors, LP (“CCC”), a Houston-based SEC-registered investment adviser focusing on energy infrastructure investments, including master limited partnerships (MLPs), with over USD4 billion in assets under management.
In conjunction with the transaction, Brookfield also will acquire certain assets of Liberty Street Advisors (Liberty Street), a New York-based SEC-registered investment adviser that serves as the investment adviser to the Liberty Street family of funds. Additionally, Brookfield will acquire certain assets of Liberty Street’s affiliates, HRC Fund Associates, and HRC Portfolio Solutions (collectively, HRC), a New York-based third-party marketing and servicing agent of CCC products to financial advisors and wealth managers at major wire houses, independent registered investment advisers and independent broker-dealers. Financial terms have not been disclosed.
Founded in 2007, CCC manages energy infrastructure assets with an investment process focused on due diligence from an owner-operator perspective. CCC invests in a portfolio of MLPs and other high-quality energy infrastructure companies through the following products: Center Coast MLP Focus Fund (CCCAX) (CCCCX) (CCCNX) (the Focus Fund); Center Coast MLP & Infrastructure Fund (NYSE: CEN); separately managed accounts; and other investment funds. Liberty Street has served as the investment adviser to the Focus Fund since its inception on 31 December, 2010, and HRC has served as the marketing and servicing agent to wealth management channels for CCC products since 2011, and also serves as the shareholder servicing agent to the Center Coast MLP & Infrastructure Fund. Following the completion of the transaction, both HRC’s marketing business and Liberty Street’s advisory business with respect to the Liberty Street family of mutual funds will continue.
The acquisition of CCC will strengthen and expand Brookfield’s business and research capability, diversifying its real asset public securities investment offerings, which currently focus on real estate equities, infrastructure equities, real asset solutions and real asset debt. In addition, with the acquisition of certain HRC assets related to CCC, Brookfield will broaden its national retail distribution capability that markets its suite of public securities investment funds. CCC will benefit from Brookfield’s strong distribution relationships and the continued development of its investment team, while broadening its product offerings.
The CCC investment team, led by Dan Tutcher, Rob Chisholm and Jeff Jorgensen, will remain based in Houston and continue to manage CCC’s funds and accounts, as they have continuously done for many years. Collaboration across the CCC investment team and Brookfield’s existing real asset securities investment teams will further strengthen the research and investment processes across Brookfield’s Public Securities Group.
“Center Coast is a leader in energy infrastructure investing whose talented team, investment focus and owner-operator mentality is a complementary fit with Brookfield’s investment philosophy, and provides us with additional investment capabilities in the MLP marketplace at an attractive point in the investment cycle,” says Craig Noble, Senior Managing Partner at Brookfield and CEO of Brookfield’s Public Securities Group.
“We are excited to join Brookfield’s Public Securities Group, with its global resources, enviable track record and highly complementary investment approach,” says Dan Tutcher, Founder, Principal and Senior Portfolio Manager of CCC. “We will continue to seek to generate attractive risk-adjusted returns for our investors, while expanding our offerings to institutional clientele.”
“We believe CCC’s alignment with Brookfield provides a strong platform from which to evaluate opportunities in today’s changing MLP and energy infrastructure landscape,” adds Victor Fontana, President of Liberty Street and HRC. “We look forward to working with Brookfield and CCC to ensure a seamless transition and to maximise the continuity of personnel serving the numerous financial advisors who invest in CCC strategies.”
Noble concluded: “We are excited to have the CCC team join Brookfield and continue to manage their investment strategies, which we are confident will appeal to our client base given the attractive investment opportunities in the midstream MLP and energy infrastructure sectors. The assets acquired from HRC will also help us to maintain the quality and continuity of relationships that HRC has established over several years.”
The transaction, which is subject to customary closing conditions and regulatory approvals, including shareholder approvals for the funds, is expected to close in the first quarter of 2018.
Berkshire Capital served as financial advisor to Brookfield and Paul Hastings served as legal advisor. Sandler O’Neill + Partners, served as financial advisor to CCC and Skadden, Arps, Slate, Meagher & Flom, Porter Hedges and Alston & Bird served as its legal advisors. Moelis & Company LLC served as financial advisor to Liberty Street and HRC and Lowenstein Sandler LLP served as legal advisor.
