$15 billion fund will target net zero investments

Canadian investment giant Brookfield has announced it has created the largest private fund ever raised to support the transition to net zero.

The Brookfield Global Transition Fund (BGTF) will have a total capital of $15 billion. The $15 billion includes investments from institutional investors in and alongside the fund, as well as amounts reserved for the private wealth channel.

BGTF, co-headed by Mark Carney (pic) and Connor Teskey, will focus on investments “to accelerate the global transition to a net zero economy while delivering strong risk-adjusted returns for investors”. The fund will invest in the transformation of carbon-intensive industries, as well as the development and accessibility of clean energy sources, “leveraging Brookfield’s leadership in renewable power”.

Teskey, CEO of Brookfield Renewable, said: “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. Brookfield has been reliably investing in renewable power for decades, and we are uniquely well positioned to be both a capital provider and an operating partner to the world’s major businesses as they accelerate their decarbonization plans.”

Approximately $2.5 billion has been deployed or allocated from the fund to date, spanning a range of decarbonisation technologies with investments at significant scale. These include:

  • The acquisition of U.S. and German solar power and battery developers, with a combined renewable power development pipeline capacity of approximately 25,000 MW.
  • An investment in a carbon capture and storage developer to fund the rollout of the company’s critical technology across energy and industrial facilities in North America; and
  • A development partnership with a UK battery storage provider to roll out up to 1,200 MW of capacity alongside 200 MW of co-located solar.

“The Fund also has a robust pipeline of potential investments that reflects increasing demand from businesses and governments to meet their decarbonization goals and enhance energy security,” said the company. “Highlighting strong industry support for decarbonisation, demand for the fund significantly exceeded its initial hard cap, and the final fund size was oversubscribed.

“A diverse group of more than 100 investors from around the world committed to the fund, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices. Brookfield is the largest investor in the fund, underscoring the firm’s longstanding alignment of interests with those of its investors.”

Carney, Brookfield vice chair and head of transition Investing, said: “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.”