Brookfield Asset Management has successfully raised $10 billion in the initial close of its second global private equity fund, the Brookfield Global Transition Fund (BGTF II), which focuses on investments driving the transition to a net-zero economy.

This milestone marks a significant step forward for the fund, which was launched last year and is poised to surpass the impressive size of its predecessor, the BGTF fund, which concluded at $15 billion in June 2022, establishing itself as the largest private fund dedicated to advancing the net-zero economy.

This fundraising achievement aligns with Brookfield’s observation of a notable surge in transition opportunities worldwide. This announcement follows a series of strategic moves by major investors targeting emerging decarbonization and energy transition prospects, exemplified by BlackRock’s recent $12.5 billion acquisition of infrastructure investor Global Infrastructure Partners and General Atlantic’s subsequent acquisition of sustainable infrastructure investor Actis.

Co-led by Brookfield Chair and Head of Transition Investing Mark Carney, alongside Brookfield Renewables CEO Connor Teskey, the fund is well-positioned to capitalize on corporate demand for decarbonization technologies, which has become the primary driver of transition investment, delivering both economic value and environmental benefits.

“Corporate demand for decarbonization technologies is now the primary driver of transition investment, delivering significant economic value as well as meaningful environmental benefits,” said Teskey.

The investment strategy of Brookfield’s BGTF II centres on three key areas: expanding clean energy, transforming carbon-intensive sector companies into sustainable models, and accelerating the adoption of sustainable solutions. Notable investments under Fund II include the acquisition of one of the UK’s leading independent developers and operators of onshore wind farms and a solar development partnership in India.

Brookfield aims to conclude fundraising for BGFT II by the third quarter of this year. The inaugural fund’s capital is already substantially deployed or committed across various sectors, including renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services, all managed according to science-based sector pathways for net zero.

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