Welcome back to the Alt Goes Mainstream podcast.
We sat down with Brookfield Private Equity CEO Anuj Ranjan.
We were live from Berlin, which becomes the “capital of private capital” in June as private equity industry leaders make the annual pilgrimage to the city for one of the marquee private equity conferences, SuperReturn Berlin.
With Prosek Partners and former Bloomberg TV journalist Deirdre Bolton as my producer, along with her team, we took over a Tiny Space cabin to hold big conversations with some of the industry’s leading alternative asset managers.
Brookfield has a rich legacy as an asset owner and operator of some of the “businesses that drive the global economy.” Brookfield is a firm where skin in the game (~25% of every fund includes an investment from Brookfield’s balance sheet) meets scale and synergies across its investment platform.
Now, they are looking to own what’s next.
What will the next era of private equity require? A different approach, according to Brookfield Private Equity CEO Anuj Ranjan.
The conversation that Anuj and I had in the Tiny Space cabin covered big themes.
Brookfield is investing in the megatrends that are driving the world’s economy across its platform, from digitalization to decarbonization to deglobalization. The firm’s focus on industrials in its private equity business makes it well equipped to invest in essential companies, as Brookfield aptly describes their investment focus as “own[ing] the boring that makes the exciting possible.”
Anuj and I had a fascinating conversation about the current state of private equity and what it will take to drive value in a new era for the industry where “12 is the new 5.” We covered:
Brookfield’s history as an owner-operator.
How the firm’s long-term perspective informs its investments in and ownership of private equity-backed companies.
Anuj’s experience investing in India was an exercise in patience and how it’s informed his investment career.
Why today is the era of “roll up your sleeves private equity.”
How Brookfield is approaching value creation in industrial companies.
Where Brookfield believes they can leverage AI to create post-deal operational value creation.
Why Brookfield partnered with OpenAI to create DeployCo in order to scale enterprise AI deployment.
Where we are in the adoption curve of physical AI and robotics.
Bio
Anuj Ranjan is Chief Executive Officer of Brookfield’s Private Equity Group and Brookfield Business Corporation. In this role, Mr. Ranjan is responsible for the investments, operations, and expansion of the Private Equity business, in addition to managing Brookfield’s external strategic partnerships. He is a member of Brookfield’s Executive Committee.
Mr. Ranjan joined Brookfield in 2006 and has held various positions within the company and its affiliates. He established and previously led Brookfield’s India and Middle East operations.
Mr. Ranjan holds a Master of Business Administration degree from Ivey Business School at Western University and a Bachelor of Science degree from the University of Alberta.
Thanks, Anuj, for sharing your wisdom, expertise, and passion about private markets and how to create value through operating companies better.
Show Notes
00:00 Introduction
00:23 Meet Anjun Ranjan
02:02 Brookfield Goes Global
02:07 First Private Equity Fund
02:20 Moving Around the World
02:26 Building in India and MENA
02:39 Emerging Markets Lessons
02:45 Industrial Investing in Growth
03:14 Deal Frenzy in India
03:38 Why the Bubble Burst
03:42 Five Years of Patience
03:48 Learning via Portfolio Entry
03:54 First Big India Buys
04:12 Scaling the India Playbook
04:14 Proving Institutional Control
04:32 India Results at Scale
04:46 Exporting the Model
04:53 From Regions to Global PE
05:03 Growing Through Headwinds
05:31 Roll Up Your Sleeves Private Equity
05:40 Operational Value Creation
05:48 Brookfield Platform DNA
06:18 Balance Sheet Advantage
06:30 Long-Term Investing Culture
06:50 Rewarded for Waiting
07:18 Middle East Long Game
07:57 Testing Tech on Balance Sheet
08:15 Owning What’s Next
08:26 AI Needs Land and Power
09:57 Platform Collaboration Culture
10:38 Cross-Platform Underwriting
12:23 Westinghouse Nuclear Bet
13:57 Energy Transition Tailwinds
14:13 Why Carve Outs Are Hard
14:33 People Make the Carve Out
15:50 Picking the Right Divisions
17:07 Transformational Underwriting
17:42 Pricing Power Playbook
19:03 From Five to Twelve Returns
20:17 Carve Outs Create Alpha
21:25 AI for Industrial Efficiency
22:13 Data Before AI
23:34 Predictive Maintenance Example
24:57 Physical AI and Robotics
26:26 Digitizing the Factory Floor
26:52 When Robotics Clicks
28:06 DeployCo with OpenAI
28:34 From Innovation to Execution
29:31 Best AI Investment Angle
29:38 Buying Boring Businesses
30:32 Building the Right Team
31:21 Hiring Tech Leaders
31:53 Blockbuster vs Netflix
32:38 Closing Reflections
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