Brookfield Asset Management has raised US$10bn in the first closing of the second Brookfield Global Transition Fund, inclusive of fund commitments and strategic capital from its investor base.
BGTF II is co-headed by Mark Carney and Connor Teskey (pictured) and focuses on investments to accelerate the global transition to a net zero economy while delivering strong risk-adjusted returns for investors.
The Fund continues the predecessor fund 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.
Its seed portfolio includes a UK onshore renewables developer and a solar development partnership in India, and the pipeline of further investment opportunities is robust.
Brookfield is targeting a larger fundraise for BGTF II than its predecessor fund and continues to see a significant acceleration in transition opportunities globally.
The Fund is the successor of the inaugural Brookfield Global Transition Fund, which closed on a record US$15bn, inclusive of fund commitments and strategic capital from our investor base in June 2022, making it the largest such fund in the world.
The capital in BGTF I is now substantially deployed or committed to a range of landmark investments across renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services opportunities.
All investments are managed to science-based sector pathways for net zero and the total impact of BGTF I, measured in avoided emissions, is on track to exceed the combined annual emissions of New York City, London and Toronto.
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, chief executive of Brookfield Renewable Power & Transition, said: “Corporate demand for decarbonization 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 decarbonization.
“The strong first close for the latest Brookfield Global Transition Fund demonstrates the growing appetite among leading global investors to capitalize on these trends.”
Fundraising for BGTF II is expected to conclude in Q3 of this year.