Norges Bank Investment Management has made a $1.5bn (€1.3bn) commitment to Brookfield Asset Management’s second global energy-transition fund.
The asset manager of the NOK20.36trn (€1.74trn) Norwegian Government Pension Fund Global said the commitment to Brookfield Asset Management’s Global Transition Fund II (BGTF II) marked its first investment in an energy-transition fund.
BGTF II, which targets investments in clean energy and decarbonisation, has a $17bn fundraising target. The fund’s seed portfolio includes a UK-based renewable-energy developer and an Indian solar development venture.
BGTF II targets a 12% internal rate of return and focuses on opportunities in renewable power, business transformation, carbon capture and storage, and renewable natural-gas sectors.
Harald von Heyden, global head of energy and infrastructure at NBIM, said: “This agreement marks our first investment in an energy transition fund. BGTF II will enable us to invest in projects that develop renewable energy infrastructure while also supporting the broader transition to low-carbon solutions across industries.
“After thorough due diligence on both investment and non-financial risks, we are confident in our selection of Brookfield as a partner for this important investment. Brookfield has established itself as a global leader in the energy transition space, managing one of the world’s largest renewable energy portfolios.”
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