Brookfield Asset Management (BAM.TO) announced on Monday that it has successfully raised $2.4 billion for the Catalytic Transition Fund (CTF), a climate finance initiative backed by the United Arab Emirates.
The CTF is designed to enhance climate finance in emerging markets and was launched during the COP28 climate talks in Dubai last December.
The fund is anchored by a significant $1 billion commitment from ALTERRA, a UAE-based climate fund with a target of attracting $250 billion in investments by the end of the decade.
ALTERRA was established by the Abu Dhabi-based alternative investment manager Lunate, also announced during the COP28 summit.
Brookfield described the initial closing of $2.4 billion as “a significant milestone towards the target of raising up to $5 billion for deployment towards clean energy and transition assets in emerging markets.” Notable investors contributing to the CTF include Canada's Caisse de dépôt et placement du Québec, Prudential (PRU.L), and Singapore's Temasek and GIC.
The CTF is anticipated to announce its initial investments later in 2024. Brookfield added that a traditional first close, along with additional capital from ongoing fundraising efforts, is expected by early next year.
Source: Reuters
