Global alternative asset investor Brookfield Asset Management announced today that is has raised $15 billion at the final close of its inaugural net zero-focused impact fund, the Brookfield Global Transition Fund.
Driven by strong demand, the fund significantly exceeded its $12.5 billion hard cap, set last year, making it the largest private equity fund raised to date dedicated to facilitating the global transition to a net-zero carbon economy.
Col-led by UN Special Envoy on Climate Action and Finance and Brookfield Vice Chair and Head of Transition Investing Mark Carney, and Brookfield Renewables CEO Connor Teskey, the fund aims to deliver strong risk-adjusted returns, while investing in the transformation of carbon-intensive industries, and the development and accessibility of clean energy sources.
“With the global carbon budget being rapidly run down, now is the time for comprehensive, determined action. 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.”
Key areas of focus for the fund include greenhouse gas (GHG) emissions and energy consumption reduction, low carbon energy capacity growth, and sustainable solutions. The fund has deployed approximately $2.5 billion to date, with investments including the acquisition of U.S. and German solar power and battery developers, an investment in a carbon capture and storage developer, and a development partnership with a U.K. battery storage provider.
The announcement comes as major private equity players globally are channeling billions into investments targeting net zero transition opportunities. Private equity firms Apollo and Blackstone have each recently said that they anticipate opportunities to invest $100 billion in energy transition and climate change solutions over the next decade, and each have launched energy transition-focused platforms over the past few months. Carlyle and Temasek have also recently launched energy transition and decarbonization focused investment platforms, and earlier this month, BlackRock announced the launch of a new infrastructure investment strategy driven by the step-change in opportunities created by the green economy transition.
“Investor demand for this fund has been exceptionally strong. Our investment partners are looking for an experienced investor who can guide their contribution to what is both a critical requirement and a major global opportunity.”