Brookfield Asset Management has successfully raised $10 billion in the initial closing of the second Brookfield Global Transition Fund (BGTF II), including fund commitments and strategic capital from its investor base. Co-headed by Mark Carney and Connor Teskey, BGTF II is dedicated to investments that expedite the global transition to a net-zero economy, while simultaneously delivering robust risk-adjusted returns.
Building on the strategy of its predecessor, the Fund focuses on expanding clean energy, accelerating sustainable solutions, and transforming companies in carbon-intensive sectors towards more sustainable business models. The seed portfolio includes a UK onshore renewables developer and a solar development partnership in India, with a robust pipeline of additional investment opportunities.
Brookfield aims to surpass the fundraising achievements of the predecessor fund, witnessing a significant surge in transition opportunities worldwide. BGTF II succeeds the inaugural Brookfield Global Transition Fund, which closed at a record $15 billion in June 2022, establishing itself as the world's largest fund of its kind.
BGTF I has already substantially deployed or committed capital to landmark investments across renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services. All investments adhere to science-based sector pathways for net-zero, and the collective impact of BGTF I, measured in avoided emissions, is on track to surpass the combined annual emissions of New York City, London, and Toronto.
Mark Carney, Brookfield Chair, and Head of Transition Investing, highlighted the Fund's ability to identify attractive investment opportunities in the transition to a net-zero economy, emphasizing its potential for delivering financial returns while making meaningful environmental impacts.
Connor Teskey, Chief Executive of Brookfield Renewable Power & Transition, noted that corporate demand for decarbonization technologies remains a primary driver of transition investment, creating economic value alongside environmental benefits. The strong first close for BGTF II indicates a growing appetite among global investors to capitalize on emerging trends.