Brookfield Asset Management Secures $20 Billion for Green Fund
Brookfield's Major Fundraising Achievement
Brookfield has made headlines with the successful final institutional close for its latest energy transition initiative, the Brookfield Global Transition Fund II (BGTF II). This remarkable effort has culminated in $20 billion raised through capital commitments from a wide spectrum of investors, both old and new.
An Historic Milestone in Fundraising
BGTF II has surpassed expectations, not only achieving its target but also breaking records set by its predecessor, making it the largest private fund globally that focuses exclusively on the transition to clean energy. The fund has attracted substantial contributions from institutional investors around the world, including notable investments of $2 billion from ALTÉRRA and $1.5 billion from Norges Bank Investment Management.
Total Capital Raised and Deployment
With an additional co-investment of approximately $3.5 billion, the total capital raised for this initiative has reached around $23.5 billion. This financial backing has already allowed Brookfield to deploy over $5 billion across a variety of promising transition investments.
Strategic Investments in Clean Energy
The investments made by BGTF II reflect a commitment to advancing high-quality transition projects. Notable investments include:
- Neoen: A strategic acquisition involving a leading global renewable power and battery storage operator.
- Geronimo Power: The purchase of a large-scale energy developer in the U.S. with extensive operational and developmental projects in key power markets.
- Evren: A joint venture focused on expediting over 10 GW of wind, solar, and storage projects in India.
Vision for Clean Energy Transition
Connor Teskey, President of Brookfield Asset Management and CEO for Renewable Power & Transition, articulated the urgent necessity for innovative energy solutions. He emphasized that the world's rising energy demand, stimulated by artificial intelligence and the electrification of both industry and transportation, requires a versatile approach to energy investments. This strategy is crucial for favoring low carbon resources moving forward.
Success of Previous Transition Fund
Brookfield's earlier transition fund, BGTF I, had garnered $15 billion, successfully investing in a diverse range of energy technologies, including renewables, carbon capture technologies, sustainable aviation fuel, battery storage, and significant interests in nuclear services through a majority stake in global technology leader, Westinghouse.
Strategic Partnerships
Additionally, Brookfield has established groundbreaking energy supply agreements with major corporations such as Microsoft and Google. These partnerships represent some of the largest agreements ever made in the realms of wind, solar, and hydroelectric energy.
About Brookfield Asset Management
Brookfield Asset Management Ltd. is a premier alternative asset manager, with its headquarters in New York City. With more than $1 trillion in assets under management, Brookfield focuses on sectors like infrastructure, renewable energy, private equity, real estate, and credit. The firm is dedicated to investing client capital for the long term, primarily focusing on real assets that are integral to the global economy.
Long-term Commitment to Investors
Brookfield continues to provide a diverse array of alternative investment products, catering to a global clientele that includes public pension funds, endowments, foundations, and other institutional investors. With a strong historical foundation as an owner and operator, Brookfield aims to create sustainable value and ensure robust returns for its clients through various economic cycles.
Frequently Asked Questions
What is the Brookfield Global Transition Fund II?
The Brookfield Global Transition Fund II is Brookfield's flagship energy transition fund, which has raised $20 billion to invest in clean energy projects.
How much capital has been raised by BGTF II?
BGTF II has successfully raised $20 billion in commitments along with an additional $3.5 billion in co-investments, totaling approximately $23.5 billion.
What types of projects does BGTF II invest in?
The fund invests in various clean energy projects, including renewable power, energy storage, and initiatives for sustainable energy development.
Who are the significant investors in BGTF II?
Notable investors include ALTÉRRA with $2 billion and Norges Bank Investment Management with $1.5 billion among others.
What is Brookfield Asset Management's focus?
Brookfield focuses on long-term investments in assets such as infrastructure, renewable power, real estate, and private equity to build a robust global economy.
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