Second ‘Brookfield Global Transition Fund’ Begins With $10 Billion

Canada's Brookfield Asset Management Adds $845 MN for JV with India's Axis Energy

Brookfield Asset Management has secured $10 billion in the initial closing of the second installment of the Brookfield Global Transition Fund (BGTF II), encompassing both fund commitments and strategic capital from its investor network.

Leading the helm of BGTF II are Mark Carney and Connor Teskey (pictured), jointly focusing on investments aimed at hastening the global transition to a net-zero economy while ensuring robust risk-adjusted returns for investors.

Building upon the strategy of the previous Brookfield fund, the BGTF II Fund concentrates on investing in the expansion of clean energy, the acceleration of sustainable solutions, and the transformation of carbon-intensive sector companies into more sustainable business models. Among the initial investors are a UK-based onshore renewables developer and a solar development partnership in India, with a robust pipeline of further investment opportunities in the offing.

This Fund succeeds the inaugural Brookfield Global Transition Fund, which closed at $15 billion in June 2022, inclusive of fund commitments and strategic capital from its investor base, making it the largest fund of its kind globally.

Capital from Brookfield BGTF-I has been largely deployed or committed to various landmark investments spanning renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services opportunities.

Brookfield says that all investments adhere to science-based sector pathways for achieving net-zero, with the collective impact of BGTF I, measured in avoided emissions, projected to surpass the combined annual emissions of New York City, London, and Toronto.

Brookfield expects BGTF-II to conclude in the third quarter of 2024.

Mark Carney, Brookfield Chairman, said, “By going where the emissions are, the Brookfield Global Transition Fund strategy is aiming to deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet.”

Connor Teskey, CEO, Brookfield Renewable Power & Transition, stated, “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 decarbonization. The strong first close for the latest Brookfield Global Transition Fund demonstrates the growing appetite among leading global investors to capitalize on these trends.”

Brookfield and India

Brookfield is mulling to raise about $1-1.2 billion from the Indian market by selling off some of its 1.6GW renewable assets and has already engaged JP Morgan to manage the process.

Since its inception in 2014, Brookfield has invested about $25 billion in the Indian energy market and presently boasts a clean energy portfolio of about 20 GW of wind and solar assets either operational or in the developmental pipeline.

Brookfield has also partnered with Telangana-based Axis Energy Ventures to expand its portfolio in solar and wind assets. It will be investing $845 million in RE projects from the Brookfield Global Transition Fund-II.