Singapore sovereign wealth fund Temasek and Ontario Teachers’ Pension Plan have become cornerstone investors in the newly-launched Brookfield Global Transition Fund (BGTF), which raised US$7bn (€6bn) in its first close.
Canadian pension investment manager PSP Investments and Investment Management Corporation of Ontario were also committing as meaningful initial investors in the fund, Brookfield said.
As a result of this initial capital, Brookfield, which is the largest investor in the fund, said a hard cap of US$12.5bn had been established. The fund is expected to hold its second close over the balance of this year.
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.
Bruce Flatt, Brookfield’s CEO, said: “Our collaboration reflects our shared determination to mobilise the resources of the private sector in delivering the innovative and impactful solutions required to effect change.”
Mark Carney, Brookfield vice chair and head of transition investing said that as the world increasingly focussed on sustainability, the required capital and investable opportunities were expanding faster than originally expected.
This trend had created an even greater opportunity for large-scale investments that addressed climate change and generated attractive returns, he said.
The transition would require global reach, large-scale capital, and deep operating expertise in renewable energy and decarbonisation.
“As a leader across these capabilities, we look forward to engaging with these and other investors to drive meaningful and measurable change to the benefit of their portfolios and our planet,” Carney said.
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