New York State Common Retirement Fund (NYSCRF) has approved a $750m (€688m) commitment to the Brookfield Global Transition Fund (BGTF), a fund which raised $7bn at its first close last year.
The $279.7bn pension fund told IPE Real Assets that the investment in Brookfield’s global transition fund will help diversify NYSCRF’s real assets portfolio’s energy sector exposure by increasing the allocation to low-carbon investments.
“The commitment will also allow the CRF to prudently increase the size of the portfolio.”
NYSCRF said BGTF targets net internal rate of returns (IRRs) of not less than 10% and gross IRRs of 13% or higher.
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.
The impact fund is reportedly seeking to raise more than $15bn, exceeding a previous $12.5bn forecast.
To read the latest edition of the latest IPE Real Assets magazine click here.
