The $15bn fund invests in the transformation of carbon-intensive industries as well as the development and accessibility of clean energy, and has secured backing from institutional investors from around the world
Brookfield Asset Management has announced the final close for institutional investors of its climate-focused Brookfield Global Transition Fund at $15bn (€14.2bn). According to the global investment firm, the fund is the largest private fund ever raised to support the transition to net zero.
The fund has secured capital commitments from more than 100 global institutional investors globally, including pension funds, sovereign wealth funda, endowment and foundations and family offices, among other investors.
According to Brookfield, which is the largest investor in the new investment vehicle, the fund was oversubscribed highlighting the “strong industry support for decarbonisation”.
The fund, co-headed by Mark Carney and Connor Teskey, focuses on investments to accelerate the global transition to a net-zero economy while delivering strong risk-adjusted returns for investors. It invests in the transformation of carbon-intensive industries, as well as the development and accessibility of clean energy sources.
In a statement announcing the final close, the firm confirmed that $2.5bn have already been deployed or allocated. These include the acquisition of a US/German solar power and battery developers, an investment in a carbon capture and storage developer, and a development partnership with an UK battery power provider.
Mark Carney, vice chair and head of transition investing at Brookfield, said that with the global carbon budget being rapidly run down, it is now the time to for “comprehensive, determined action”.
He added: “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. This fund provides significant scale of capital with catalytic long-term investment the world needs to help put our planet on a sustainable net-zero pathway.”
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.