Brookfield raise $15 bn for Brookfield Global Transition Fund

Brookfield Asset Management, a global alternative asset investor, announced that the first net zero-focused impact fund, the Brookfield Global Transition Fund, has reached its final closure with $15 billion in funding.

The fund raised more than its $12.5 billion hard caps, which were greatly surpassed by high demand, making it the largest private equity fund launched to date with a focus on accelerating the transition to a net-zero carbon economy.

The fund, jointly led by Brookfield Vice Chair and Head of Transition Investing Mark Carney, the UN Special Envoy on Climate Action and Finance, and Connor Teskey, CEO of Brookfield Renewables, aims to deliver strong risk-adjusted returns while making investments in the transformation of carbon-intensive industries and the advancement and accessibility of clean energy sources.

Reducing greenhouse gas (GHG) emissions and energy consumption, expanding low-carbon energy capacity, and sustainable solutions are some of the key areas of concentration for the fund.

The fund has invested about $2.5 billion so far, and some of its investments include buying German and American solar power and battery companies, investing in a carbon capture and storage company, and forming a collaboration with a British battery storage company.

The announcement comes as big private equity investors invest billions of dollars in prospects for net-zero transition. Both the private equity firms Apollo and Blackstone recently stated that they see the potential to spend $100 billion in energy transition and climate change solutions over the following ten years. Additionally, both companies recently introduced platforms devoted to the energy transition.

Earlier this month, BlackRock announced the launch of a new infrastructure investment strategy motivated by the step-change in opportunities created by the transition to a green economy.

Carlyle and Temasek have also recently launched investment platforms focused on the energy transition and decarbonisation.

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