Canadian renewables investor Brookfield Asset Management has raised US$10 billion for its second Global Transition Fund, an energy transition and renewables financing vehicle.
The fund – which is led by former governor of the Bank of England, Mark Carney – is targeting a larger closing sum than its predecessor, the Brookfield Global Transition Fund I (BGTF I), which closed at US$15 billion.
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The first US$10 billion close of this second fund includes a seed portfolio of an unnamed UK onshore renewables developer and a solar development partnership in India.
In a media statement, Brookfield said that the capital in BGTF I, which closed in July 2022, “is now substantially deployed or committed to a range of landmark investments across renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services opportunities”
The second fund will continue in the same vein, the company said: “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.”
Carney said: “We have demonstrated beyond doubt the breadth and scale of attractive investment opportunities in the transition to a net zero economy. 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.”
Brookfield recorded a ‘record year’ in its financial results for its renewables development arm in 2023, driven predominantly by its solar PV assets. One of its most notable transactions last year was the acquisition of Florida-based US utility Duke Energy’s utility-scale renewables business, for which it signed a US$2.8 billion deal in October. According to energy research firm Mercom Capital, this was the single largest acquisition in the global solar industry last year.
Connor Teskey, CEO of Brookfield Renewable Power & Transition, said: “Corporate demand for decarbonisation technologies is now the primary driver of transition investment, delivering significant economic value as well as meaningful environmental benefits.
“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 decarbonisation.”
The fund is expected to close in Q3 2024.