Brookfield Amasses $10B for 2nd Climate Transition Fund

Brookfield Asset Management raised $10 billion in the first closing of its second Brookfield Global Transition Fund (BGTF II), focused on investments to accelerate the global transition to a net zero economy.

The fund follows its debut Brookfield Global Transition Fund (BGTF I), which closed at a record $15 billion in June 2022, making it the largest such fund in the world, according to the global alternative investment behemoth.

BGTF I is now “substantially” deployed or committed to a range of investments across renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services opportunities.

BGTF II is co-headed by Mark Carney, former Governor of the Bank of England and Brookfield Chair and head of transition investing, and Connor Teskey, CEO of Brookfield Renewable Power & Transition.

The fund’s seed portfolio includes a U.K. onshore renewables developer, the name of which was not disclosed, and a solar development partnership in India. Brookfield is targeting a larger raise for BGTF II than its predecessor fund.

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

Brookfield manages over $850 billion in assets. Fundraising for BGTF II is expected to end in the third quarter.

The news comes after several prominent investors have made moves to target emerging decarbonization and energy transition opportunities, including BlackRock’s $12.5 billion acquisition of infrastructure investor Global Infrastructure Partners in January and General Atlantic’s subsequent acquisition of sustainable infrastructure investor Actis.