Brookfield holds USD-10bn first close for second transition fund

Canada’s Brookfield Asset Management (NYSE:BAM) on Monday announced a USD-10-billion (EUR 9.2bn) first close for its second Brookfield Global Transition Fund (BGTF II) focused on net zero investments.

The raised sum includes fund commitments and strategic capital from the asset manager’s investor base, Brookfield said in a press statement.

Led by Mark Carney and Connor Teskey, BGTF II seeks to surpass its predecessor fund which closed on a record USD 15 billion in June 2022. Fundraising for BGTF II is expected to be completed in the third quarter of 2024, the firm, which manages over USD 850 billion of assets, said.

The new fund aligns with the strategy of its predecessor of investing in clean energy expansion, sustainable solutions and the transformation of carbon-intensive companies. Its seed portfolio includes a UK onshore renewables developer and a solar development partnership in India.

Connor Teskey said that corporate demand for decarbonisation technologies is the main driver of transition investment.

“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 decarbonisation. The strong first close for the latest Brookfield Global Transition Fund demonstrates the growing appetite among leading global investors to capitalize on these trends,” Teskey commented.

Brookfield operates global renewables platform Brookfield Renewable Partners.

(USD 1 = EUR 0.919)

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