Brookfield Asset Management, a real assets-focused alternative asset manager with over $850bn of AUM, has held the first closing of the second Brookfield Global Transition Fund (BGTF II) at $10bn in fund commitments and strategic capital.
BGTF II is co-headed by Mark Carney and Connor Teskey and focuses on investments to accelerate the global transition to a net zero economy, has attracted significant support from both existing and new investors.
The fund continues the strategy of the inaugural Brookfield Global Transition Fund (BGTF I), which closed on a record $15bn in June 2022, making it the largest such fund in the world, of investing in the expansion of clean energy, the acceleration of sustainable solutions and the transformation of companies operating in carbon-intensive sectors to more sustainable business models.
The fund’s seed portfolio includes a UK onshore renewables developer and a solar development partnership in India. Brookfield is targeting a larger fundraise for BGTF II than its predecessor fund and says it “continues to see a significant acceleration in transition opportunities globally”.
The capital in BGTF I is now deployed or committed to a range of investments across renewable power, business transformation, carbon capture and storage, renewable natural gas and nuclear services opportunities. According to a press release, all investments are managed to science-based sector pathways for net zero and the total impact of BGTF I, measured in avoided emissions, is on track to exceed the combined annual emissions of New York City, London and Toronto.
Fundraising for BGTF II is expected to conclude in Q3 of this year.