Brookfield has closed its Global Transition Fund II with $20bn in commitments, setting a new record for the world’s largest private fund dedicated to the clean energy transition.
The flagship vehicle surpassed its target and the total raised by its predecessor, the $15bn Brookfield Global Transition Fund I, attracting institutional investors from around the world.
The company said the fund received capital from both existing and new investors, including previously announced commitments of $2bn from ALTÉRRA and $1.5bn from Norges Bank Investment Management.
In addition, about $3.5bn in co-investment capital has been secured for portfolio deployment, bringing total capital raised across the strategy to around $23.5bn.
More than $5bn has already been deployed through investments in renewable energy and transition technologies.
These include the public-to-private acquisition of Neoen, a global renewable power and battery storage operator and developer; the purchase of Geronimo Power, a US-based large-scale energy developer with an extensive pipeline in key markets; and the formation of Evren, a joint venture in India to advance over 10GW of wind, solar and storage projects.
Connor Teskey, president of Brookfield Asset Management and chief executive of Renewable Power & Transition, said: “Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favour low carbon resources. Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”
Brookfield said the new fund builds on the strategy of its first Global Transition Fund, which invested in renewable power, carbon capture, sustainable aviation fuel, battery storage and nuclear services, including a majority stake in Westinghouse.
The company has also recently agreed framework energy supply deals with Microsoft and Google, described as the largest such agreements signed for wind, solar and hydroelectricity.