Market Overview

Brookfield Public Securities Group Completes Acquisitions of Center Coast Capital and Certain Assets of Liberty Street Advisors and HRC

Share:

NEW YORK, Feb. 05, 2018 (GLOBE NEWSWIRE) -- Brookfield Asset Management's Public Securities Group today announced it has completed the acquisitions of Center Coast Capital Holdings, LLC ("CCC"), an energy infrastructure-focused, Houston-based SEC-registered investment adviser with approximately $4 billion in assets under management, and certain assets of Liberty Street Advisors, Inc. ("Liberty Street") and its affiliates, HRC Fund Associates, LLC and HRC Portfolio Solutions, LLC (collectively, "HRC"). HRC served as the third-party marketing and servicing agent of CCC products to financial advisors and wealth managers at major wirehouses, independent registered investment advisers and independent broker-dealers. The acquisitions were previously announced on October 10, 2017.

"These acquisitions mark an important step in the growth of the Public Securities Group, which now has more than $20 billion of assets under management. We have complemented our real assets and alternatives focus with a dedicated energy infrastructure capability—one that expands our investment platform and diversifies our offerings of public securities portfolios. Our investors will gain access to standalone midstream infrastructure strategies, at what we see as a pivotal point in the cycle. Adding this team of seasoned investment professionals expands and strengthens our research and investment capabilities for the benefit of clients globally," said Craig Noble, Senior Managing Partner at Brookfield and CEO of Brookfield's Public Securities Group. "We are also excited to welcome members of HRC's team to Brookfield, who will continue to service financial advisors and bolster the retail distribution capabilities of our entire platform."

The newly established dedicated energy infrastructure investment team, led by Dan Tutcher, Rob Chisholm and Jeff Jorgensen, will remain based in Houston and will manage the Center Coast Brookfield MLP Focus Fund and Center Coast Brookfield MLP & Energy Infrastructure Fund. Liberty Street and HRC team members join Brookfield to form the foundation of our Wealth Management Group. They will continue to service the Financial Advisor community across the country as they expand our presence in these distribution channels.

Berkshire Capital served as financial advisor to Brookfield and Paul Hastings LLP served as its legal advisor. Sandler O'Neill + Partners, L.P. 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 and Stradley Ronon Stevens & Young served as their legal advisors.

Matters Relating to the Center Coast Registered Funds

On January 23, 2018, shareholders of the Center Coast MLP & Infrastructure Fund ("CEN") approved a new investment advisory agreement with Brookfield Investment Management Inc. and approved new members to the Board of Trustees. CEN's Board of Trustees also approved a name change in light of the transaction to the Center Coast Brookfield MLP & Energy Infrastructure Fund. In addition, on January 23, 2018, shareholders of the Center Coast MLP Focus Fund approved the reorganization of the fund into a newly formed series of Brookfield Investment Funds having the same investment objective and substantially similar principal investment strategies and risks as the Center Coast MLP Focus Fund.

Brookfield's Public Securities Group
Brookfield Investment Management Inc. (the "Firm") is an SEC-registered investment adviser and represents the Public Securities platform of Brookfield Asset Management Inc., providing global listed real assets strategies including real estate equities, infrastructure equities, energy infrastructure equities, real asset debt and multi-strategy real asset solutions. With more than $20 billion of assets under management as of February 5, the Firm manages separate accounts, registered funds and opportunistic strategies for financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and individual investors. The Firm is a wholly-owned subsidiary of Brookfield Asset Management Inc., a leading global alternative asset manager with approximately $265 billion of assets under management as of September 30, 2017. For more information, go to www.brookfield.com.

About Center Coast Brookfield MLP & Energy Infrastructure Fund
CEN is a non-diversified closed-end management investment company. CEN's investment objective is to provide a high level of total return with an emphasis on distributions to shareholders. The "total return" sought by CEN includes appreciation in the net asset value of the Fund's common shares and all distributions made by CEN to its common shareholders, regardless of the tax characterization of such distributions, including distributions characterized as return of capital. CEN seeks to achieve its investment objective by investing primarily in a portfolio of MLPs and energy infrastructure companies. Under normal market conditions, CEN will invest at least 80% of its managed assets in securities of MLPs and energy infrastructure companies. CEN may invest up to 20% of its managed assets in unregistered or restricted securities, including securities issued by private companies. CEN utilizes leverage as part of its investment strategy. There is no assurance that CEN will achieve its investment objective.

About Center Coast Brookfield MLP Focus Fund
The Focus Fund is a non-diversified open-end management investment company. The Focus Fund's investment objective is to seek maximum total return with an emphasis on providing cash distributions to shareholders. The "total return" sought by the Focus Fund includes appreciation in the net asset value of the Focus Fund's common shares and all distributions made by the Focus Fund to its common shareholders, regardless of the tax characterization of such distributions, including distributions characterized as return of capital. The Focus Fund seeks to achieve its investment objective by investing primarily in a portfolio of MLPs. There is no assurance that the Focus Fund will achieve its investment objective. 

Contacts

CEN and the Center Coast Brookfield MLP Focus Fund:
This press release is not intended to, and does not, constitute an offer to purchase or sell shares of any Fund. 

The SEC does not endorse, indemnify, approve nor disapprove of any security.

Risks and Disclosures – Center Coast Brookfield MLP & Energy Infrastructure Fund

The Fund's investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and energy infrastructure companies (including Midstream MLPs and energy infrastructure companies) in which the Fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund's profitability.

MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP were to be obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital, or capital gain).

In addition, investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling.

The information contained herein has been prepared by Brookfield Investment Management Inc. and is current as of the date hereof.  Such information is subject to change. 

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. AN INVESTMENT IN THE FUND COULD SUFFER LOSS.

The Fund seeks to achieve its investment objective by investing primarily in a portfolio of master limited partnerships ("MLPs") and energy infrastructure companies. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in securities of MLPs and energy infrastructure companies. The Fund may invest up to 20% of its Managed Assets in unregistered or restricted securities, including securities issued by private companies. The Fund utilizes leverage as part of its investment strategy. There is no assurance that the Fund will achieve its investment objectives.

The Fund is a non-diversified closed-end investment company. Shares of closed-end investment companies, such as the Fund, frequently trade at a discount to their net asset value, which may increase investors' risk of loss.

Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing.

This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.

Investing in the Fund involves risk, including possible loss of principal invested. The Fund is not a complete investment program and you may lose money investing in the Fund.

Because of the Fund's concentration in MLP investments, the Fund is not eligible to be treated as a "regulated investment company" under the Internal Revenue Code of 1986, as amended (the "Code"). Instead, the Fund will be treated as a regular corporation for U.S. federal income tax purposes and, as a result, unlike most investment companies, will be subject to corporate income tax to the extent the Fund recognizes taxable income.

The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and will not elect to be treated as a regulated investment company under the Code. Accordingly, the Fund may concentrate its investments in a limited number of companies. As a result, the Fund's returns may fluctuate as a result of any single economic, political or regulatory occurrence affecting, or in the market's assessment of, such portfolio companies to a greater extent than those of a diversified investment company.

An investment in MLP units involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of MLP units have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of MLP units have more limited control and limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in MLP units. Additionally, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of an MLP; for example, a conflict may arise as a result of incentive distribution payments, as such an incentive structure may result in divergent and potentially conflicting interests between common unit holders and the general partner, which may have more motivation to pursue projects with high risk and high potential   reward.

Because the Fund is focused in MLP and energy infrastructure companies operating in the industry or group of industries that make up the energy sector of the economy, the Fund may be more susceptible to risks associated with such sector. A downturn in such sector could have a larger impact on the Fund than on an investment company that does not concentrate in such sector. At times, the performance of securities of companies in the energy sector may lag the performance of other sectors or the broader market as a whole.

The Fund currently seeks to enhance the level of its current distributions by utilizing financial leverage. The Fund may utilize financial leverage up to the limits imposed by the Investment Company Act of 1940, as amended. The costs associated with the issuance and use of financial leverage will be borne by the holders of the common shares. Financial leverage is a speculative technique and investors should note that there are special risks and costs associated with financial leverage. There can be no assurance that a financial leverage strategy will be successful during any period in which it is employed. On January 31, 2018, the Fund's outstanding borrowings were $78.5 million under its credit facility (18.8% of Managed Assets) and $50 million of Mandatory Redeemable Preferred Stock (12.0% of Managed Assets), resulting in a total leverage percentage of 30.8%. As of January 31, 2018, the Credit Facility had an interest rate of 2.53% and the Preferred Stock has a 4.29% annual coupon.

Information is as of the date indicated and subject to change.

Risks and Disclosures – Center Coast Brookfield MLP Focus Fund

Before investing you should carefully consider the Center Coast Brookfield MLP Focus Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by calling 855-777-8001 or by visiting the Fund's website at www.brookfield.com. Please read the prospectus or summary prospectus carefully before investing.

Mutual fund investing involves risk. Principal loss is possible. Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. The Fund's investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. Additional management fees and other expenses are associated with investing in MLPs. Additionally, investing in MLPs involves material income tax risks and certain other risks. Actual results, performance or events may be affected by, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) changes in laws and regulations and (5) changes in the policies of governments and/or regulatory authorities. Unlike most other open-end mutual funds, the Fund will be taxable as a regular corporation, or "C" corporation. Consequently, the Fund will accrue and pay federal, state and local income taxes on its taxable income, if any, at the Fund level, which will ultimately reduce the returns that the shareholder would have otherwise received. Additionally, on a daily basis the Fund's net asset value per share ("NAV") will include a deferred tax expense (which reduces the Fund's NAV) or asset (which increases the Fund's NAV, unless offset by a valuation allowance). To the extent the Fund has a deferred tax asset, consideration is given as to whether or not a valuation allowance is required. The Fund's deferred tax expense or asset is based on estimates that could vary dramatically from the Fund's actual tax liability/benefit and, therefore, could have a material impact on the Fund's NAV. This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice or to avoid legal penalties that may be imposed under U.S. federal tax laws. Investors should contact their own legal or tax advisors to learn more about the rules that may affect individual situations.

Past performance is no guarantee of future results. The Center Coast Brookfield MLP Focus Fund is managed by Brookfield Investment Management Inc.

The Fund is not required to make distributions and in the future could decide not to make such distributions or not to make distributions at a rate that over time is similar to the distribution rate it receives from the MLPs in which it invests. It is expected that a portion of the distributions will be considered tax deferred return of capital (ROC). ROC is tax deferred and reduces the shareholder's cost basis (until the cost basis reaches zero); and when the Fund shares are sold, if the result is a gain, it would then be taxable to the shareholder at the capital gains rate. Any portion of distributions that are not considered ROC are expected to be characterized as qualified dividends for tax purposes. Qualified dividends are taxable in the year received and do not serve to reduce the shareholder's cost basis. The portion of the Fund's distributions that are considered ROC may vary materially from year to year. Accordingly, there is no guarantee that future distributions will maintain the same classification for tax purposes as past distributions. An investment in the Fund may not receive the same tax advantages as a direct investment in the MLP. Because deferred tax liability is reflected in the daily NAV, the MLP Fund's after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

CEN is distributed by Foreside Fund Services, LLC. The Focus Fund is distributed by Quasar Distributors, LLC. 

Primary Logo

View Comments and Join the Discussion!