Ladies and gentlemen, thank you for standing by, and welcome to the Brookfield Asset Management second quarter 2020 results conference call. I would now like to hand the conference over to your speaker today, Ms. Suzanne Fleming, managing partner. Thank you. Please go ahead, ma'am.
Thank you, operator, and good morning. Welcome to Brookfield's second quarter 2020 conference call. On the call today are Bruce Flatt, our Chief Executive Officer, Nicholas Goodman, our Chief Financial Officer, and Bahir Manios, CFO of our infrastructure business. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. Finally, Bahir will give an update on our infrastructure business. After our formal comments, we'll turn the call over to the operator and take analyst questions. I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and US securities law. These statements reflect predictions of future events and trends and do not relate to historic events.
They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. Thank you. Now I'll turn the call over to Bruce.
Thank you, Suzanne. Good day, everyone. Our business performed well during the quarter. Since we last spoke to you, we recorded our largest fundraising period ever. We raised $23 billion across various pools of capital, the highlight of which was the $12 billion of initial commitments for our latest flagship distressed credit fund. This was raised against the backdrop of the global economic shutdown, which impacted many businesses, including some of ours. We are now seeing economies across the world slowly reopening. While it could take well into 2021 for a full recovery, our impacted businesses are already showing signs of improvement. The success of our fundraising in the period highlights the scale and diversity of our product offering.
When we partnered with Oaktree last year, as well as refocused efforts on growing our perpetual private fund offerings, we did so to round out the product offering to ensure we had products that were attractive to our clients across all cycles. This quarter exemplified the benefits of this strategy as we were able to accelerate fundraising for flagship distressed debt fund and raise capital for more fixed income like perpetual funds. Our record level of fundraising means we now have $77 billion of capital available to deploy into investments. We expect the pace of investment to increase over the next 12 months as opportunities present themselves. Overall, the increased levels of government debt that we have seen as a result of the economic shutdown will have long-term effects on many things.
The most important of which is that many countries around the world will have to offload spending onto the private sector and sell assets. This should bode well for the scaling up of our infrastructure and our renewable businesses. We have Bahir Manios, CFO of our infrastructure business, with us on the call today to give us an update on that business and where we are seeing opportunity. As government aid tapers, the private sector will also be increasingly in need of capital, and there should be many opportunities for us to invest across all of our pools of capital. This will include us putting funds to work in non-control investments in our recently created special investments program, distressed debt opportunities in our Oaktree funds, and control investments within our property, infrastructure, renewable, and private equity flagship funds.
Our latest round of flagship funds is approximately 50% deployed in aggregate. With the pipeline we see today, we should be back in the market for all of them in 2021. Turning to interest rates, we have discussed over the past 12-18 months about what a low interest rate environment means for our fundraising. We are seeing that play out in real time today with the capital raised since May. With a zero interest rate environment here, it increasingly looking like it will be here for 5+ years , this will also have a meaningful impact in a positive way on the real assets that we already own. The majority of our assets today have long-term fixed contracts, either long-leased property, contracted power, or utility or utility-like assets. With interest rates dropping, the value ascribed to these cash flow streams increases significantly.
Just in the past few weeks, we have started to see bids for real estate and infrastructure assets at higher multiples than pre-COVID. While the majority of our investments are the long-term contracted assets which I just mentioned, we do have some businesses that saw disruption from the shutdowns. In our private equity business, we witnessed some businesses with sales down more than 50% with the shutdowns in April and May. Virtually all our operations are now experiencing increased activity with some approaching comparable results to last year in July, August. In our retail business, our US retail centers were shut down by government mandate for two months. All but one reopened by June 30th, with foot traffic now back to more than 50% of normal levels and improving every week. 85% of stores in the retail malls are now opened.
Rents are now being collected, and our teams are focused on discussions about collection for the shutdown period with some tenants. While a smaller part of our business, most of our hotels have now also begun to reopen. The largest hospitality business we own is called Center Parcs in the United Kingdom, which is experiencing higher forward bookings than at this time last year, largely as a result of it being a domestic offering when international offerings are hard to access. As another anecdote, we are experiencing significantly increased sales in our U.S. single-family housing operations. As an example, last year on average, we sold 65 homes. To put that into perspective, in April it was close to zero, and today we're selling between 80 and 100 per week. That is 20%-30% higher than last year.
I would note for you that virtually all single-family builders of similar scale are experiencing this, not just us. This has further flowed to wood products, where prices have tripled since March. This bodes well for our investment in Norbord, which has similarly tripled its price in the stock market since March. The company looks like it has significant room to generate super profits this year. As it relates to office buildings, our views are laid out in the shareholder letter, and in the next short while, we will post a client white paper on the subject for you to review on our website. Simply stated, our view is that companies use their offices to foster culture, collaboration, and development of talent. This cannot be replicated from a home office. Further reinforcing these views, I would note a few facts.
First, our Seoul office buildings, which were among the first shut down globally, are now back to 90% employee occupancy. I would note for you that Korea is a very tech-savvy place. Shanghai is back to almost the same. In addition, we collect badge swipes on employees at our office properties. This totals a million people who work in our properties globally. This is a very large sample of global office workers. The overall information is powerful, as we know who comes and goes, for how long, when, and how they move around. What I can tell you is that virtually every day on average since May 1, the numbers in the office have increased. This gives us hard data to base our views on.
Please consider those comments when you read news which suggests that nobody will ever go back to the office, ironically, often provided by some of those who benefit from people staying at home. Please consider those views. Our views are based on hard data and very extensive discussions with large groups of corporations who we lease space to, not merely conjecture. With those comments, I would gladly turn it over to Nick Goodman, who will cover our results for the quarter.
Thank you, Bruce, and good morning, everyone. We had strong results during the second quarter, especially when considering the economic environment. Our asset management earnings continued to exhibit very strong growth, and most of our operating companies showed their resiliency. We generated $605 million of cash available for distribution, or what we call CAFDAR, during the quarter, a 20% increase from the second quarter of 2019 when excluding the impact of carried interest. The strong cash generation, combined with corporate and third-party fundraising activities, has increased our deployable capital to $77 billion. This positions us well to pursue growth opportunities in the coming months, quarters, and years.
75% of our businesses are backed by contractual cash flows from utilities, renewable power, offices, data infrastructure, and critical service infrastructure, and were therefore unaffected by the economic shutdown. We did have some businesses that reported no income for the quarter when we recorded some non-cash revaluations in net income to reflect the current environment. This resulted in a net loss attributable to shareholders for Q2 of $656 million or $0.43 per share. More relevant to the operating performance of the business is our funds from operations, or FFO, which was $1.2 billion for the quarter or $0.73 per share. Starting with our asset management results, fee-related earnings before performance fees increased by 23% to $324 million for the three-month period and totaled $1.3 billion over the last 12 months, an increase of 41% from the same period in 2019.
The growth in our fee-related earnings is a reflection of the latest round of fundraising on our flagship funds, contribution from our partnership with Oaktree, and the growth of our perpetual strategies. To date, our fee-bearing capital totals $277 billion, and our annual fee revenues stand at $2.8 billion. We also have a further $29 billion of capital that will become fee-bearing when invested. When fully deployed, this capital will generate approximately $315 million of incremental fee revenues annually. Our unrealized carried interest balance stands at $2.9 billion, largely consistent with the first quarter. This is a reflection of the stability that our investments provide to our clients. Most of the assets that we manage are privately owned and generate stable cash flows with strong downside protection of capital, making them resilient and protected from public marks.
While we expect to crystallize the unrealized carried interest, the slowdown in economic activity did delay a number of our planned asset sales and therefore delayed carry realization. That led to a reduction in our realized carried interest this quarter, although we did recognize $76 million of carry in the quarter. We have recognized $499 million over the last 12 months. A number of the sales processes that were delayed are now restarting, and we retain our conviction in the fact that both the high-quality nature of the assets and their cash flows, combined with the low interest rate environment, makes these assets and/or businesses very attractive to prospective buyers. In the last two months, we've completed secondary offers for both BEP and BIPC.
Combined, these two transactions allowed us to realize approximately $700 million of cash proceeds to further enhance our liquidity that we will look to redeploy into other opportunities over time. We continue to maintain significant holdings in each of these companies and continue to view each as outstanding businesses to invest in and believe these transactions will further support their growth to increasing the public flow and liquidity of the underlying units and shares. Importantly, it also shows the vast liquidity that we hold at Brookfield Asset Management, as none of these investments, which can on a day's notice, be turned to cash should we wish, are counted in our liquidity numbers. Turning to our balance sheet investments. Excluding disposition gains, FFO for the quarter was $333 million.
The decrease compared to the prior year was primarily caused by the disruption from the economic shutdown, which lowered earnings at our modest number of hospitality assets and other investment properties, in particular our retail investments, as well as at certain directly held investments. As mentioned, we believe earnings will return to normalized levels as the economy progresses on its path of recovery. In the quarter, we recognized disposition gains of $473 million, primarily from the aforementioned secondary offering of BEP units. To date, our liquidity and capitalization remain very strong. In addition to $61 billion of uncalled fund commitments, we have approximately $16 billion of core liquidity across the group, including nearly $6 billion directly at BAM, for a total of $77 billion of deployable capital.
If you were to include an estimate of our non-core holdings of our affiliates, it would bring that number closer to $90 billion. Our balance sheet remains conservatively capitalized with an implied corporate debt to market capitalization ratio of 13% at the end of the quarter, an average remaining term on our corporate debt of 11 years, and we have no individual piece of debt maturing before 2023. Finally, I am pleased to confirm that our board of directors has declared a $0.12 per share dividend payable at the end of September. With that, I will turn the call over to Bahir Manios.
Thank you, Nick, and good morning, everyone. Many sectors were hard hit following the shutdown of economies around the world. However, the infrastructure sector demonstrated one of its most coveted characteristics, being its highly resilient cash flows. While it's too early to comment on learnings from this challenging period, our conviction regarding the attractiveness and sustainability of the infrastructure sector has been reinforced. It is with considerable pride that we can report that every operating business owned by Brookfield Infrastructure was deemed an essential service and thus has been operating throughout this period. Our assets performed well on a local currency basis, and only a very small portion of our overall revenue was affected by this global economic shutdown. We currently estimate that the true economic impact of this shutdown represents less than 2% of the infrastructure group's overall cash flows.
Within the infrastructure platform, we have a tremendous amount of liquidity across Brookfield Infrastructure Partners, our publicly listed vehicle and our private funds, which today sits at close to $20 billion that is available for deployment. Before I touch on where we're seeing opportunities in the current environment, I thought I'd provide an update on two of our infrastructure private fund strategies that have had a great deal of success recently, both from a fundraising and investment perspective, thereby demonstrating the diversity of not only the sources of capital that are available to us, but also the types of transactions that we're taking part in. These are our Super-Core open-ended infrastructure fund, and our closed-ended infrastructure debt funds. Our Super-Core fund is focused on long-term, very stable, almost bond-like cash flows, and was established at the end of 2018.
Since inception, we've raised over $2.6 billion, including through this recent market volatility and economic uncertainty. We truly believe this business has great potential and could grow in the size of tens of billions of dollars over the next 5 - 10 years. On the infrastructure debt side, we raised our first two debt funds, being a global fund and a smaller European-focused fund in 2016 and 2017. With the aim of investing in the mezzanine debt of infrastructure companies that have stable, regulated, or contracted cash flows. Over the past few years, we've focused on debt investments across the transport, data, energy, and renewable power sectors, and these continue to be areas of focus for us. We recently completed an initial or first close for the next vintage of this fund series, raising $1.8 billion of capital.
From a new investment perspective, we believe this is an attractive environment for Brookfield Infrastructure to source opportunities for the foreseeable future. The economic cost of the downturn will be that many industrial companies and all governments will be significantly more indebted. Once the immediate measures to stabilize economies and businesses have been implemented, governments and businesses alike will need to evaluate alternatives to source capital to repay excessively high debt levels. You probably have heard a number of us speak about this in the past, about the secular trend of governments seeking investment from the private sector to acquire and build out infrastructure. With inflated deficits, along with the desire to stimulate economic activity, we expect the impetus for this to become even more pronounced. In addition, many corporations will be susceptible to tighter credit markets, and they will need to reduce debt levels through asset sales.
We're currently focused on executing several medium-sized tuck-in acquisitions for various businesses in our energy, transport, and data operations. As a result of the potential synergies, we believe that these acquisitions should be highly accretive if secured. Furthermore, we're evaluating numerous new investment opportunities in all of our key regions. An ongoing area of focus for us is data infrastructure. We thought we'd spend some time on today's call discussing our progress and views on this exciting high-growth asset class. We're currently witnessing a once in a 100-year investment upgrade cycle. Aging broadband copper infrastructure is no longer able to cope with the demands imposed by an increasingly interconnected and always online world. These networks are being replaced by new state-of-the-art fiber infrastructure, which can support increases in data demand, lower latency, and faster broadband speeds.
Concurrently, wireless networks are undergoing a transformation to support the enhanced connectivity expected from 5G. On a combined basis, these upgrades are estimated to require trillions of dollars of investment over the next five to seven years. Historically, these investments were funded by telecom operators. Given the increasing demands on their capital, these operators are now seeking new funding partners. They're increasing their reliance on neutral host shared infrastructure models to alleviate pressures on their balance sheets. The investable universe for data infrastructure is expanding in a very meaningful way. Our original thesis for investing in data was based on the belief that data infrastructure assets have utility-like characteristics with favorable growth trajectories that play a central role in connecting people, places, and objects.
The importance of these networks was further reinforced during this recent shutdown, as access to robust and reliable connectivity became a basic need to perform routine activities, such as working from home, remote learning, and telemedicine. This was exemplified as an example on our UK fiber networks, where average data consumption increased by 40% compared to the same period last year. Over the past five years, we've established a leading global data infrastructure business. As we expand our current business by either building and/or acquiring high-quality data infrastructure assets, we're well-positioned to leverage our expertise in two key areas. First, we have investments that span the entire connectivity value chain. Comprised of one of the largest tower portfolios, with a contracted base of over 180,000 sites in six countries.
We also own a growing global data center business with approximately 70 sites in 13 countries that are able to serve the scale and latency requirements of a diverse customer base. Finally, extensive fixed and wireless networks that serve over 2.5 million residential and enterprise customers. There are very few investment managers that operate across the complete value chain that I just described. We, on the other hand, have firsthand knowledge on deploying and operating networks such as 5G and fixed wireless access across several geographies. We can leverage this operational know-how and unique insights to capitalize on new trends as they emerge. Second, there are significant number of opportunities which are embedded across our broader Brookfield business. Continued adoption in cloud computing is expected to require an incremental approximately 30 GW of data center capacity over the next 10 years.
At the same time, these operators are focused on achieving their stated carbon reduction targets over the next 10 years. We are very well positioned to help support these goals. We're exploring the potential to bundle data centers and renewable power to provide a turnkey green data center solution. This would differentiate us or our offering relative to more traditional data center operators and could be a game changer for us. We're also pursuing several other initiatives, including leveraging our existing rights of way to deploy fiber and our existing real estate portfolio to deploy in-building wireless solutions. We're very excited by this asset class and believe that there will be significant opportunity to at least double the size of our existing business, given that we're still in the very early stages of this massive investment cycle that I touched on earlier.
In general, we would describe our current investment posture, especially with respect to larger sized new investments, as optimistically patient. We believe that a large-scale value opportunity will arise over the next 12 months. We're reminded of our experience during the global financial crisis in 2009, 2010, when the transformative Babcock & Brown investment, or BBI, that we made did not present itself to us until almost nine months after the Lehman bankruptcy. We passed on many opportunities before the right one came along. We'll also be focused in the second half of 2020 and into 2021 on executing our capital recycling program. As both Bruce and Nick alluded to earlier, we're confident that the merits of investing in mature, de-risked cash flow producing infrastructure assets will be more appealing to prospective buyers than ever before, particularly with the expectation for low interest rates for the foreseeable future.
Lastly, before I conclude my remarks, we're very pleased with the market's response thus far to Brookfield Infrastructure Corporation, or BIPC, which was listed on the Toronto and New York Stock Exchange on March 31st of this year. BIPC was recently added to the Russell 2000 US Index. We intend to support the growth of BIPC's public float over time to improve the company's trading liquidity, the first initiative in this regard was recently undertaken, that Nick touched on in his remarks earlier. With that, thanks for your time this morning, and I'll turn the call over to the operator to open the line for questions.
As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from Bill Katz with Citigroup. Your line is now open.
Okay. Thank you very much for the added disclosure this morning discussion. Bruce, maybe one for you. Just as you mentioned that you sort of bringing forward the flagship opportunity. In the past, you've commented on sort of incremental sizing. I was sort of wondering, just given all the ins and outs over the last six months, seven months of the year, what's going on with sort of virtual road shows, what have you, how are you feeling about allocations and maybe the sizing of these successor funds? When you say 2021, is this the beginning of the year or second half of the year? How are you sort of figuring this against the pace of deployment? Thank you.
It's Bruce. I'll answer, and Nick can add some things if he thinks of something else. First, maybe going from back to front. On timing during the year, there are three funds. You never know what the deployment is. We said 2021. I suspect it could be anywhere from later this year for one of the funds through to the end of next year, depending on deployment within each of the different funds. It all depends on our deployment of capital and opportunities. The greater number of opportunities we find, obviously deployment will be quicker. As to sizing, our view is that our platform gets larger. The opportunities that come to us are bigger, and therefore the capital that we can deploy, with a competitive advantage, in scale
continues to increase. I think you'll see our funds will be larger at some point in time. After 10 years or 15 years of increasing the scale of these funds, at some point in time, they may taper off in the quantums of increase. At the current time, we don't see that and continue to see large opportunities to put money to work.
Okay, great. Thank you very much.
Thank you. Our next question comes from Cherilyn Radbourne with TD Securities. Your line is now open.
Thanks very much. Good morning. In terms of the zero interest rate environment and the pressure that's likely to put on pools of capital that need to earn, call it high single-digit returns, clearly your recent fundraising would suggest that some clients have reacted already. How long would you expect it to take for portfolio allocations to adjust more broadly such that we see a larger migration out of traditional fixed income and into alternatives?
I would just say, I think the floodgates have only started to open. The reason is that if you're trying to earn 5%, 6%, 7%, 8% within a institutional pool of money, there really is no hope to do that with traditional fixed income. As a result of that, other than holding cash for liquidity purposes or short bonds for liquidity purposes or some form of long bonds just for safety, all other pools of former fixed income allocations are going to come to lower risk alternatives. Therefore, that's going to enhance private credit opportunities. It's going to enhance real estate infrastructure and all the products that we offer. I think you've started to see. What I would say is we've been seeing it for 15 years.
It's accelerated over the past five years, it's even going to accelerate more now if we've gone from 2%-3% interest rates to zero. When I say zero, it's zero almost every country in the world. Even in some of the emerging markets, we're down to 2%-3% interest rates, which is even sending their stock markets and other alternative products they have up in value.
Okay. In light of recent news flow, maybe you could comment just generally on the extent to which you think that logistics may play a larger role in how some of the space in your mall portfolio gets repurposed.
Yeah, look, I'd just say our view has been, and still is, that online retailers and store retailers are going to mesh together, and there's going to be one delivery system of products to customers, and that will include both deliveries to the door, picking up in locations, and stores where people shop. It'll depend on the type of product that's being offered. Increasingly, that will include many other offerings. We're at the forefront of conversions of portions of the real estate to both that and also to other uses within the centers. I think there's a lot of change going forward, and for great real estate, it will be a very positive fact.
Thank you. That's my cue.
Thank you. Our next question comes from Robert Lee with KBW.
Great. Thank you for taking my questions this morning. I'm just curious. Maybe the first question is on a CAFDAR, I guess that's what you call it. A few, I guess a year or so ago, you kind of talked about that doubling over a five-year period. As that grows and particularly as the asset management business transforms with more third-party capital, that would, I believe, free up more capital, whether to redeploy and share repurchase or whatnot. Obviously, that's the ways out. Can you maybe update us on your thoughts around the pace of cash flow growth and deployment of capital over time? Is that still part of the goal plan, or do you just see that being set aside for a while?
Hey, Rob, it's Nick. I don't think our outlook for CAFDAR has really changed. I think our growth projections that we laid out were really aligned to step changes in the growth of the business, and we had a big step change with the last round of flagship fundraising. I think as we embark on the next round of flagships with this latest distressed debt fund being the first of the four, if you will, that'll be the next sort of step change growth. In the meantime, we continue to grow the perpetual offerings, and that will contribute along the way. I don't think anything has really changed from that outlook. We knew this year was going to be maybe smaller growth than last year, just given that path we're on, but nothing has changed. I think the use of the cash has not changed significantly.
We're generating, as you know, significant free cash flow from a combination of the asset management business and our invested capital, we plan to use that to reinvest in the business, to opportunistically grow the business. Like last year, most of that cash would have gone towards the Oaktree transaction, which retaining cash allows us to have that flexibility. We'll support the franchise, as we start to step through this and carry starts to pick up and realization picks up, we will have excess cash that we will look to return to shareholders over time. Nothing has changed, I would say.
Okay, great. Then maybe my follow-up. Many of your US peers have focused a lot of attention and resources on growing their insurance businesses, or I shouldn't say growing theirs, or acquiring insurance businesses. Athene, Global Atlantic, they've all done something to different degrees it seems. Now that you own a majority stake in Oaktree, which would seem to have a lot of the requisite credit skills, do you have any ambitions or thoughts about that as a future area for growth expanding your insurance activities?
It's Bruce. I think your last point is actually the most relevant one, is that an insurance business is about putting credit to work. Small amounts can be put into more traditional alternatives that our franchise has largely been about, but credit is the biggest portion of it. Historically, our credit franchise was not that big, so if we bought a big insurer, we would have a tough time putting the credit to work. With Oaktree, that opens up other opportunities for us. It's something we may and could look at, and we do have the requisite skills to open up that opportunity. I think it expands our universe of things we can look at to broaden the franchise if we so choose.
Okay, great. Thank you for taking my questions.
Thank you. Our next question comes from Mario Saric with Scotiabank. Your line is now open.
Thank you. Good morning. Just two quick follow-up questions, one on successful fundraising and then one on real asset valuation in a zero interest rate environment. Just on the successor funds. In the past, sizing has been driven in part based on the depth of the potential acquisition pipelines. You have noted government expectations to sell assets given the unprecedented spending, but also a fairly quick recovery in public market valuations. I guess my question is just how the size of that acquisition pipeline changed post the start of the COVID pandemic, and how has that impacted your confidence level in terms of achieving your $100 billion fundraising target?
Look, I'd say it's highly probable that the opportunity for us to, A, raise capital and, B, put money to work is greater today than it was 12 months ago. That's largely because our customers, on one hand, need our services more. Governments or corporations are more indebted today. Therefore, they need our services more. As a result of it, I'd say the combination of the two is a much more positive macro backdrop to what we do, despite short-term disruptions over the last six months and maybe another six months. Certainly, the global backdrop is very positive to our business.
Understood. Okay. Secondly, just in terms of higher real asset valuations in the letter to shareholders, you referenced an office building example involving long-term good covenant cash flow. Inherently the expected rise in value implies a lower discount rate or cap rate. I think Bruce, in your prepared remarks, you noted that you're starting to see higher multiples being paid in the private market relative to pre-COVID levels. Generally speaking, what do you think is the big catalyst for more broad-based discount rate or cap rate compression to occur in the private markets, assuming investors are comfortable with in-place cash flows for those real assets?
Look, the comment I just made in the remarks, and I just add to it, is that we're starting to see that occur. Most or many investors today haven't decided that it's time to put money to work. As the comfortability of the fact that we're going to come through this situation that we've been in gets greater and interest rates are low, you will start to see more money being put to work and higher valuations paid for assets that fit that category. You're already seeing it in the stock markets. You'll start seeing it in the private markets. It's just in the private markets, logistically, it was difficult for most people to do things over the past three months.
Okay. Thank you.
Thank you. As a reminder, ladies and gentlemen, that's star then one to ask a question. Our next question comes from Andrew Kuske with Credit Suisse. Your line is now open.
Thank you. Good morning. If you could maybe give us a bit of perspective about how your clients think about your Super-Core product and also your perpetual product. Are they thinking it more in the lines of an allocation towards, let's call it fixed income plus, or is it a real asset allocation to them?
Good morning, Andrew Kuske. Maybe I'll take that one on just on behalf of the infrastructure group given the recent success we've had with our Super Core launch which we've been doing now for about two plus years. As I alluded to in my remarks, we've raised about $2.6 billion from clients and invested thus far $1.6 billion and have a pretty active pipeline. Here, our clients, and as I mentioned, we're targeting mature de-risked infrastructure with minimum volume risks, located predominantly or exclusively in developed markets. We're targeting high single-digit type returns, with most of that coming from current yield. That's a very important characteristic for our investors. If you look at the pool of cap, where have we been raising this from? We have about 50 LPs thus far in the fund. Most of that is coming from smaller pensions and insurance companies.
Average ticket size is around $50 million or so. It doesn't really overlap with our other Brookfield Infrastructure core series of funds as well. From an infrastructure perspective, that's sort of the game plan for us. As I mentioned in my remarks, we expect this strategy to grow materially in the next few years.
Okay. That's great. I appreciate that extra color. Then maybe the follow-up. You do see the two markets as being very distinct, the lower return, stabilized long-term contracted cash flows for Super Core and then more opportunistic in your traditional flagship infrastructure fund. I guess that's the first part about it. Is there a potential interplay in the future of some of the assets that you have stabilized in the flagship funds that eventually maybe transition over time to Super Core kind of product?
Hey, Andrew, it's Nick. Listen, I think what we look to do in the flagship fund is we buy assets where we believe we can bring our operating expertise to drive outsized returns. I would say often when we stabilize them and sell them, sometimes they would then go for returns that would be tighter than our Super-Core fund. That doesn't always work. The obvious answer is we're obligated to extract best value from our flagship funds. We will look to do that. There are some synergies potentially with using the Super-Core capital when looking at acquisitions and carving up portfolios. The game plan is not to sort of buy assets in one pool of capital to sell to another. We'd look to manage them independently of each other.
That's great. Thank you.
Thank you. Our next question comes from Sohrab Movahedi with BMO Capital Markets. Your line is now open.
Okay. Thank you. I just wanted to see if you could provide a bit more color just around the fundraising environment. Obviously, there wasn't an overlap between your existing funders and the Oaktree new geographies. There's been a little bit of kind of noise around capital flows and restrictions, maybe in certain jurisdictions and oil prices and the like. I'm just curious if you could give us a bit more color as to why it was so successful, if you will, and what sort of optimism you have towards that success continuing beyond the zero rate environment, obviously.
Yeah, look, I would just say a couple comments. First one is that those that have established franchises in periods of time where there is disruption get all money. I guess the corollary is if you had a new fund or were going to go try to raise a new fund, it was virtually impossible for someone to do that, meaning a new strategy or a new manager. The reason is because you couldn't visit somebody's office, talk to them, explain your situation, and try to coax them into your fund if you didn't know them already. The established brands, ours being one of them, ours, I'll call it Brookfield Oaktree, being one of them, is going to get it and the other established brands got all the money that was probably allocated in the last four months.
The first point is these type of situations, money has gone to established brands versus new types of situations. Secondly, the products that we happen to have today that are on offer are exactly what our clients want. They're fixed income alternatives that are a supplement to their portfolios, which they're now looking at 0% returns. Secondly, it's distressed credit, which appears like it should be over the next 12 months, one of the great places to invest capital into. Therefore, that was attractive to institutions. I just say that in the short while, we had the right products for the market, and I think when we come with our next flagships, like always, these are strategies that we've deployed for many years, and we should be able to track capital for those.
I think the success in the last three months is just the fact that we had good products in this period of time.
That's helpful, Bruce. Thank you very much. If I can just have a quick follow-up on that. When you do come back with, or when you do return for flagship fundraising, is there any reason to believe that you may have to alter hurdle returns or fee rates or any of that kind of stuff as far as the structure of those are concerned and future cash flows, whether it's management fees or performance fees or carried interest or whatever for Brookfield Asset Management?
I would just say that to date, we have not experienced any of that. No one can know the future, but our services are attractive to our clients, and we haven't had that issue at the current time, and we don't expect it in the future.
Thank you very much.
Thank you. I'm not showing any further questions at this time. I would now like to turn the call back over to Suzanne Fleming for any closing remarks.
Thank you, operator. With that, we'll end the call. Thank you for joining us today, and we look forward to seeing you at our Investor Day in September. We expect we'll be there in person in New York, and we'll have room for some of you who wish to join us in person. As we did last year, we'll be live streaming the day for those who aren't able to join us in person. We look forward to seeing you then. Thanks.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.