Brookfield reaches first close on second transition fund

Brookfield Asset Management has raised US$10 billion for a second global transition fund.

The global asset manager announced the first close of the second Brookfield Global Transition Fund (BGTF II), which saw support from both existing and new investors.

BGTF II is co-headed by Brookfield chair and head of transition investing Mark Carney and Connor Teskey, CEO of Brookfield Renewable Power and Transition, and "focuses on investments to accelerate the global transition to a net zero economy while delivering strong risk-adjusted returns for investors."

The fund allocates to 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. The seed portfolio of BGTF II includes a UK onshore renewables developer and a solar development partnership in India, with a "robust" pipeline of further investment opportunities.

The Fund is the successor of the inaugural Brookfield Global Transition Fund (BGTF I) which closed with $15 billion of fund commitments and investor capital in June 2022. Brookfield notes 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 CityLondon and Toronto," Brookfield noted.

"We have demonstrated beyond doubt the breadth and scale of attractive investment opportunities in the transition to a net zero economy," Carney said. "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."

Fundraising for BGTF II is expected to conclude in the third quarter of this year.

"Corporate demand for decarbonization technologies is now the primary driver of transition investment, delivering significant economic value as well as meaningful environmental benefits," Teskey said. "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."

Brookfield Asset Management has over US$850 billion of assets under management and operates Brookfield Renewable Partners one of the world's largest publicly traded platforms for renewable power and sustainable solutions.

Since 2002, Brookfield has had two separate, unsuccessful attempts at privitising Australian electricity and energy producers - Origin in 2023 and AGL in 2022.

Read more: Brookfield Asset ManagementConnor TeskeyMark CarneyAGLBrookfield Renewable PartnersOrigin