Brookfield Business Partners (BBU) has agreed to sell portions of its stakes in three businesses to a new evergreen private equity strategy.
This strategy, managed by Brookfield Asset Management, targets high-net-worth investors.
The deal includes selling about 12% interest in its engineered components manufacturing operation, 7% in its dealer software and technology services, and 5% in its work access services.
In return, Brookfield Business Partners will receive units of the new fund valued initially at approximately $690 million.
This represents an 8.6% discount to the net asset value of the interests sold.
CEO Anuj Ranjan stated the transaction delivers a strong outcome for unitholders and shareholders while providing the new strategy with a diversified seed portfolio before launch.