Brookfield raises US$15bn for ‘world’s largest private fund’ focused on the energy transition

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The Fund will focus its investments on decarbonisation technologies such as solar PV and battery storage. Image: Brookfield/TerraForm.

Brookfield Asset Management has raised US$15 billion as part of its Brookfield Global Transition Fund that will focus investments on the transition to a net zero carbon economy.

Announced yesterday, the oversubscribed Fund, which Brookfield claimed was the “world’s largest private fund dedicated to facilitating the global transition to a net-zero carbon economy”, drew money from more than 100 entities from around the world, although Brookfield remains the largest investor in the Fund.

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Specifically, it will invest in the transformation of carbon-intensive industries as well as the development and accessibility of clean energy sources, Brookfield said in a media statement.  

The Fund has already made US$2.5 billion of investments in a number of decarbonisation technologies, including the acquisition of US and German solar power and battery developers with a combined pipeline of approximately 25GW as well as investing in a carbon capture and storage developer to accelerate its North American growth.

It has also struck a development partnership with a UK battery storage provider to roll out up to 1,200MW of capacity alongside 200MW 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 decarbonisation goals and enhance energy security”, said Brookfield.

The company’s head of transition investing, former head of the Bank of England and former UN special envoy for climate action and finance, Mark Carney, said the transition meant “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,” he added.

“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,” said Connor Teskey, CEO of Brookfield Renewable, an affiliate of Brookfield Asset Management, which at the start of the year tripled its US development pipeline to 31GW through the US$650 million acquisition of clean power developer Urban Grid.

The Fund is now closed to institutional investors but remains open to a limited number of private investors through its private wealth channel Brookfield Oaktree Wealth Solutions.

Canada-headquartered Brookfield Asset Management currently has US$725 billion in assets under management, including US$68 billion in its renewable power business, according to the company.  

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