Brookfield’s second global energy transition fund, which targets investments in clean energy and decarbonisation, has raised an initial $10bn (€9.3bn) and is expected to surpass the $15bn raised for the first fund.
The fund manager said Brookfield Global Transition Fund (BGTF) II has had its first close and continues to “see significant support” from both existing and new investors. Brookfield expects the fundraising for BGTF II to be concluded in the third quarter of the year.
As previously reported, Altérra, established by Abu Dhabi-based investment manager Lunate, is committing $2bn to BGTF II, to invest in clean energy and transform businesses in carbon-intensive sectors.
Brookfield said BGTF II continues the predecessor fund’s strategy of investing in the “expansion of clean energy, the acceleration of sustainable solutions, and the transformation of companies operating in carbon-intensive sectors to more sustainable business models”.
It added that BGTF II’s seed portfolio includes a UK onshore renewables developer and a solar development partnership in India, and has a pipeline of further investment opportunities.
Brookfield said BGTF I, which closed in June 2022, is now substantially deployed or committed to a range of investments across renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services.
Mark Carney, Brookfield chair and head of transition investing, said: “We have demonstrated beyond doubt the breadth and scale of attractive investment opportunities in the transition to a net-zero economy.
“By going where the emissions are, the Brookfield Global Transition Fund strategy is aiming to deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet.”
Connor Teskey, CEO of Brookfield’s renewable power and transition business, said: “Corporate demand for decarbonisation technologies is now the primary driver of transition investment, delivering significant economic value as well as meaningful environmental benefits. New trends are also emerging, such as supplying reliable, clean power to the surging data and technology sector, building entirely new industrial supply chains, and scaling technologies required for industrial decarbonisation.
“The strong first close for the latest Brookfield Global Transition Fund demonstrates the growing appetite among leading global investors to capitalise on these trends.”
To read the latest IPE Real Assets magazine click here.