Brookfield raises US$15 billion for global transition fundBY RACHEL ALEMBAKIS | THURSDAY, 23 JUN 2022 11:25AM
Read more: Brookfield Asset Management, Connor Teskey, Mark Carney, Bank of England, Brookfield Oaktree Wealth Solutions
Brookfield has reached final institutional close having raised US$15 billion for a fund aimed at facilitating the global transition to a net-zero carbon economy. global transition fund.
The Brookfield Global Transition Fund (BGTF) includes investments from institutional investors, private wealth, and Brookfield reports that demand for the fund "significantly" exceeded its initial hard cap.
"A diverse group of more than 100 investors from around the world committed to the fund, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices," Brookfield said.
Brookfield is the largest investor in the fund.
BGTF is co-headed by former Bank of England governor Mark Carney, who is vice chairman and head of impact at Brookfield, and Connor Teskey, CEO of Brookfield Renewable.
The fund focuses on investments to accelerate the global transition to a net zero economy while delivering strong risk-adjusted returns for investors.
Brookfield reports that approximately US$2.5 billion has been deployed or allocated from the fund to date, spanning a range of decarbonisation technologies with investments at significant scale, including the acquisition of U.S. and German solar power and battery developers, with a combined renewable power development pipeline capacity of approximately 25,000 MW; an investment in a carbon capture and storage developer to fund the rollout of the company's critical technology across energy and industrial facilities in North America; and a development partnership with a U.K. battery storage provider to roll out up to 1,200 MW of capacity alongside 200 MW of co-located solar.
"With the global carbon budget being rapidly run down, now is the time for comprehensive, determined action," Carney said. "That means deploying capital across the economic spectrum from scaling clean energy generation, to transforming traditional utilities and to providing sustainable solutions for heavy industries like steel and cement."
While the fund is now closed to institutional investors, it remains open to a limited number of private wealth investors through Brookfield Oaktree Wealth Solutions.
"Our investment partners are looking for an experienced investor who can guide their contribution to what is both a critical requirement and a major global opportunity," Teskey said. Brookfield has been reliably investing in renewable power for decades, and we are uniquely well positioned to be both a capital provider and an operating partner to the world's major businesses as they accelerate their decarbonization plans."