Brookfield Asset Management has announced the successful raising of $20 billion in commitments and strategic capital at the final close of the Brookfield Global Transition Fund II (BGTF II), establishing it as the largest private fund dedicated to the transition to clean energy. This fund not only surpasses its initial fundraising target but also exceeds the size of its predecessor, the original BGTF fund. Additionally, Brookfield has secured approximately $3.5 billion in co-investment for its portfolio, bringing the total capital raised to $23.5 billion.
Launched in 2023 following the previous year’s closure of the original fund at $15 billion, BGTF II focuses on three primary areas: the expansion of clean energy, the transformation of companies in carbon-intensive sectors towards more sustainable business models, and the acceleration of sustainable solutions. The fund targets investments across North America, South America, Europe, and the Asia-Pacific regions.
Brookfield reports that the fund has attracted contributions from institutional investors globally, including several new to the Brookfield transition platform. Notable commitments include $2 billion from the UAE-backed climate investment platform ALTÉRRA and $1.5 billion from Norway’s $1.8 trillion oil fund, Norges Bank Investment Management.
According to Brookfield, BGTF II has already deployed $5 billion, with investments in companies such as clean energy developer Neoen, US-based energy developer Geronimo Power, and India’s renewable energy platform Evren.
Connor Teskey, President of Brookfield Asset Management and CEO for Renewable Power & Transition, commented on the fund’s ambitions: “Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop, we need an ‘any and all’ approach to energy investment that will continue to favour low carbon resources. Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”
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