Brookfield has raised $15bn (€14.3bn) for its global energy transition fund to target investment opportunities relating to reducing greenhouse gas emissions and energy consumption.
The manager said the amount raised for the Brookfield Global Transition Fund (BGTF) makes the fund the world’s largest private fund dedicated to facilitating the global transition to a net-zero carbon economy.
In July last year, IPE Real Asset reported that Singapore sovereign wealth fund Temasek and Ontario Teachers’ Pension Plan had become cornerstone investors in BGTF, which had raised $7bn in its first close. At the time, Brookfield said a hard cap of $12.5bn had been established.
Brookfield said the $15bn raised includes investments from institutional investors in and alongside the fund, as well as amounts reserved for the private wealth channel. “Highlighting strong industry support for decarbonisation, demand for the fund significantly exceeded its initial hard cap, and the final fund size was oversubscribed,” the manager said.
As previously reported, the New Jersey Division of Investment disclosed it was planning to make a $600m commitment to the fund.
The Pennsylvania Public School Employees Retirement System and the New York State Common Retirement Fund approved $300m and $750m respectively to BGTF.
Brookfield said a diverse group of more than 100 investors from around the world committed to BGTF, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices.
BGTF targets investment opportunities relating to reducing greenhouse gas emissions and energy consumption, as well as increasing low-carbon energy capacity and supporting sustainable solutions.
Mark Carney, Brookfield vice chair and head of transition investing said: “With the global carbon budget being rapidly run down, now is the time for comprehensive, determined action. That means deploying capital across the economic spectrum from scaling clean energy generation, to transforming traditional utilities and to providing sustainable solutions for heavy industries like steel and cement.
“This fund provides significant scale of capital with catalytic long-term investment the world needs to help put our planet on a sustainable net-zero pathway.”
Connor Teskey, CEO of Brookfield Renewable, said: “Investor demand for this fund has been exceptionally strong. Our investment partners are looking for an experienced investor who can guide their contribution to what is both a critical requirement and a major global opportunity.
“Brookfield has been reliably investing in renewable power for decades, and we are uniquely well-positioned to be both a capital provider and an operating partner to the world’s major businesses as they accelerate their decarbonisation plans.”
Brookfield said around $2.5bn of the fund’s capital has so far been deployed or allocated to a number of investments including the acquisition of US and German solar power and battery developers; an investment in a carbon capture and storage developer; and a development partnership with a UK battery storage provider.
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