Brookfield sets new record with $20bn close for energy transition fund

Brookfield Asset Management has raised $20bn (€17.1bn) for its second global energy transition fund, making it the “world’s largest private fund dedicated to the transition to clean energy”.

The Brookfield Global Transition Fund II (BGTF II), which targets investments in clean energy and decarbonisation, secured capital from a diverse range of existing and new investors, to surpass the $15bn raised for the first fund in the series.

As previously reported, Altérra, established by Abu Dhabi-based investment manager Lunate, committed $2bn to BGTF II. Last month, Norges Bank Investment Management also disclosed making a $1.5bn commitment to BGTF II.

Additional investors included the California Public Employees’ Retirement System, which placed $1bn into the fund, and the School Employees Retirement System of Ohio, which committed $75m.

Brookfield said the fund also secured approximately $3.5bn of co-investment into its portfolio, bringing the total capital raised across the strategy in this vintage to approximately $23.5bn.

The manager said over $5bn has already been deployed through investments. These include the acquisition of the global renewable energy developer Neoen, the US-based diversified energy developer Geronimo Power and the Indian clean energy platform Evren.

Connor Teskey, president of Brookfield Asset Management and CEO for renewable power and transition, said: “Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favour low carbon resources.

“Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”

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