Brookfield fund raises US$2.4 billion for clean energy investment

BROOKFIELD Asset Management (Brookfield) announced an initial closing of US$2.4 billion for its Catalytic Transition Fund (CTF) to drive clean energy and transition asset investments in emerging markets across the global south. 

This brings the fund’s capital up to almost half of its US$5 billion target, the alternative-asset manager announced on Monday (Sep 23). 

Four more investors were announced in addition to Alterra, the climate fund jointly launched by Abu Dhabi-based alternate investment fund Lunate and global asset managers BlackRock, Brookfield and TPG at COP28. They provided an anchor commitment of US$1 billion to the CTF at its launch at the United Nations climate conference in December last year. 

The new investors are Singapore’s sovereign wealth fund GIC, Temasek, Canadian pension fund Caisse de depot et placement du Quebec (CDPQ), and insurer Prudential, among others. 

Brookfield chair and head of transition investing Mark Carney said these four investors’ commitments highlight “significant momentum” for the CTF and “underscores the unique combination of the major commercial opportunity and the climate imperative”. 

Alterra chief executive HE Majid Al-Suwaidi noted that early momentum around the fund showed “strong global demand not just for climate strategies, but for opportunities to invest in climate solutions in emerging markets”. 

Alterra’s capital can serve as a “powerful multiplier of climate finance to the global south”, he added.

CDPQ Global executive vice-president and head Marc-Andre Blanchard said: “By investing in Brookfield’s CTF, we are supporting innovative approaches to mobilise capital for climate solutions in emerging markets, where investments are critical to tackle the global environmental challenge.” 

Brookfield has also committed to provide 10 per cent of the CTF’s target to align itself with investment partners and investors, said the company.

The CTF aims to bring capital into clean energy and transition assets in markets in South and Central America, South and South-east Asia, the Middle East and Eastern Europe. 

This comes as investment needs to increase significantly in order to reach the US$1.6 trillion required annually by the early 2030s in line with global net-zero targets, said Brookfield. 

The CTF expects to announce its initial investments later this year. 

Brookfield added that a traditional first close with additional capital from Brookfield’s ongoing fundraising efforts through its extensive network of institutional investors is expected by early 2025.