Brookfield Asset Management today announced it has raised $10 billion in the first closing of a global private equity fund focused on investments that accelerate the global transition to a net-zero economy, the Brookfield Global Transition Fund (BGTF II).
According to Brookfield, the new fund, launched last year, is already on track to surpass the size of its record-breaking predecessor, the BGTF fund, which reached $15 billion at its final close in June 2022, making it the largest private fund dedicated to investing in the net zero economy.
Brookfield added that the strong fundraising comes as it “continues to see a significant acceleration in transition opportunities around the world.” The announcement follows a series of moves by major investors to target emerging decarbonization and energy transition opportunities, including BlackRock's $12.5 billion acquisition in January of infrastructure investor Global Infrastructure Partners , and General Atlantic's subsequent acquisition of sustainable infrastructure investor Actis.
The fund is co-led by Brookfield President and Head of Transition Investments Mark Carney and Brookfield Renewables CEO Connor Teskey.
Teskey said:
“Business demand for decarbonization technologies is now the main driver of transition investment, providing significant economic value as well as significant environmental benefits. New trends are also emerging, such as providing reliable, clean energy to the growing data and technology sector, building entirely new industrial supply chains, and scaling technologies needed for industrial decarbonization.”
Brookfield's BGTF investment strategy focuses on three key areas, including expanding clean energy, transforming companies operating in carbon-intensive sectors to more sustainable business models, and accelerating sustainable solutions. Fund II's investments to date include the acquisition of one of the UK's largest independent developers and operators of onshore wind farms and a solar development partnership in India. Brookfield aims to complete fundraising for BGFT II in the third quarter of this year.
The company said capital from the inaugural fund is already substantially deployed or committed, with investments spanning renewable energy, business transformation, carbon capture and storage, renewable natural gas and nuclear services opportunities. Brookfield added that all investments are managed in accordance with science-based industry pathways to net zero emissions and the fund's total impact, and that the fund is on track to achieve avoided emissions that exceed New York City's combined annual emissions. York, London and Toronto.
Carney 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 emissions are, the Brookfield Global Transition Fund strategy aims to deliver strong risk-adjusted financial returns for investors and make significant environmental impacts for people and the planet.”
