Brookfield raises mammoth USD-15bn fund for net-zero investments

Brookfield Asset Management Inc (TSE:BAM.A) has raised USD 15 billion (EUR 14.2bn) for its Brookfield Global Transition Fund (BGTF), the firm’s inaugural fund focused on the transition to a net-zero carbon economy.

The Canadian asset manager today announced the final institutional close for the fund, which it said is the world’s largest private fund intended to support the net-zero transition.

BGTF is investing in the decarbonisation of carbon-intensive industries and the expansion of clean energy. It has already deployed or allocated USD 2.5 billion, with investments including the acquisition of US and German solar power and battery developers with a combined renewable development pipeline of 25 GW, an investment in a carbon capture and storage (CCS) developer, as well as a development partnership with a UK battery storage company to deploy up to 1.2 GW of capacity together with 200 MW of co-located solar.

The fund saw strong investor demand and was oversubscribed above the initial hard cap of USD 12.5 billion. A USD-7-billion initial closing for BGTF was announced a year ago.

The USD-15-billion amount includes investments from institutional investors in and alongside the fund, and also amounts reserved for the private wealth channel, Brookfield said.

The vehicle has attracted commitments from more than 100 investors, including public and private pension plans, sovereign wealth funds and insurance companies, with Brookfield itself being the largest investor.

(USD 1 = EUR 0.948)

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