Brookfield Business Partners selling assets to seed new private equity strategy

Brookfield Business Partners (BBU) has reached an agreement to sell a portion of its interest in three businesses to a new evergreen private equity strategy targeting high-net-worth investors, managed by Brookfield Asset Management. Brookfield Business Partners will sell an approximate 12% interest in its engineered components manufacturing operation – DexKo -, an approximate 7% interest in its dealer software and technology services operation – CDK Global – and an approximate 5% interest in its work access services operation – BrandSafway – to the New Fund. Brookfield Business Partners will receive units of the New Fund with an initial redemption value of approximately $690M, representing an aggregate 8.6% discount to the net asset value of the interests sold. In the 18-month period following the initial closing of the New Fund, expected later this year, the Units are expected to be redeemed for cash at an 8.6% discount to NAV at the time of redemption. Any remaining Units still outstanding after this 18-month period will be redeemable at NAV. The sale is expected to be completed on July 4.