Investment giant Brookfield Asset Management is preparing to launch its next massive real estate opportunity fund next year.
That is faster than originally planned, a signal of how the market has strengthened.
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On a conference call with analysts after second-quarter results Wednesday, the fund manager said it is deploying more capital in real estate and expects sales from its funds to pick up as well.
“We expect our real estate flagship to be in the market in 2027,” Brookfield Asset Management CEO Connor Teskey said.
“We're really liking the sequencing of that and the fact that both those credit and real estate flagship launches are being pulled forward from their original forecast.”
BAM raised $16B for Brookfield Strategic Real Estate Partners V, which held a final closing in 2025, its largest-ever real estate fund. Teskey did not mention a target for the next fund.
BAM has spent $5.6B on behalf of that fund, for which it first raised capital in 2023. It has $27B of assets left to sell in its third and fourth flagship opportunity funds, it said in quarterly results.
BAM Chief Financial Officer Hadley Marshall said on the call that “[real estate] sentiment continues to improve and more market participants are coming off the sideline.”
As an example, he pointed to BAM’s purchase in January of Yes Communities, a U.S. manufactured housing operator, for $10B from GIC. The manager purchased the business for Breva-H, a value-add fund focused on housing.
Teskey and Marshall both said BAM has a strong pipeline of deals in advanced stages. The improvement in market sentiment means 2026 will be one of the most active years for new deals in recent history, they said, and deploying capital will put BAM in a position to launch a new fund.
The firm spent $5.2B in the last quarter, almost three times as much as the same period last year.
BAM has $280B in real estate assets under management and $27B of capital to invest in the sector. In the last quarter, it raised $4.3B for its real estate business, including $3B from separately managed accounts and for co-investment across its funds.
The revenue it earned from real estate dropped slightly in Q2 2026 compared to the same period last year, from $261M to $259M.
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