Brookfield Announces Initial US$7 Billion Closing for Brookfield Global Transition Fund
Brookfield Asset Management announced the closing of its Brookfield Global Transition Fund (BGTF) with an initial capital of US$7 billion, marking it as the largest fund aimed at a net-zero economy. The hard cap is set at US$12.5 billion. Founding partners include Ontario Teachers’ and Temasek, both committing significant capital. The Fund will leverage Brookfield’s expertise in renewable power to drive investments in decarbonization and sustainable solutions, aligning with the Paris Agreement to achieve net-zero emissions by 2050 or sooner.
- Closed initial capital of US$7 billion for the Brookfield Global Transition Fund.
- Fund has a hard cap established at US$12.5 billion.
- Partnership with leading investors like Ontario Teachers' and Temasek enhances credibility and investment reach.
- Focus on high-demand investment opportunities related to climate change and sustainability.
- None.
Founding investment partners Ontario Teachers’ and Temasek make major commitments
Significant commitments also made by PSP Investments and IMCO
Brookfield Global Transition Fund is dedicated to accelerating the transition to a net-zero economy
Hard cap established at US
BROOKFIELD NEWS, July 27, 2021 (GLOBE NEWSWIRE) -- Brookfield Asset Management (NYSE: BAM, TSX: BAM.A) (“Brookfield”) today announced an initial US
The founding investment partners, Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and Temasek, have both committed to achieving net zero by 2050 or sooner. To this end, included as part of this closing, Ontario Teachers’ and Temasek are committing significant capital in, as well as strategically investing alongside, the Fund.
PSP Investments (“PSP Investments”) and Investment Management Corporation of Ontario (“IMCO”) are also committing as meaningful initial investors in the Fund.
Brookfield’s partnership with these leading global investors, combined with Brookfield’s position as the Fund’s largest investor, reinforces the institutions’ collective dedication to responsible investing and the transition to a net-zero carbon economy. It also provides the Fund with size, scale and flexibility to target the largest and most attractive decarbonization-driven investment opportunities.
As a result of this initial capital, a hard cap of US
Bruce Flatt, CEO of Brookfield said, “We are thrilled to have this group of strategic, like-minded partners investing alongside us in the Brookfield Global Transition Fund. We all believe that private capital has a critical role to play in addressing climate change. Our collaboration reflects our shared determination to mobilize the resources of the private sector in delivering the innovative and impactful solutions required to effect change. We look forward to working closely with these and other investors in the Fund to deliver a positive societal impact while generating attractive returns.”
Mark Carney, Brookfield Vice Chair and Head of Transition Investing, added, “Brookfield is committed to achieving net-zero by 2050 or sooner, and to accelerating the global net-zero transition. As the world increasingly focuses on sustainability, the required capital and investable opportunities are expanding faster than originally expected, creating an even greater opportunity for large-scale investments that address climate change and generate attractive returns. Through this Fund, we are pleased to partner with best-in-class institutions to commit the capital required to scale clean energy and catalyze companies onto Paris-aligned net-zero pathways.”
He continued, “Enabling the transition will require global reach, large-scale capital, and deep operating expertise in renewable energy and decarbonization. As a leader across these capabilities, we look forward to engaging with these and other investors to drive meaningful and measurable change to the benefit of their portfolios and our planet.”
Ziad Hindo, Chief Investment Officer of Ontario Teachers’ said, “By making a significant commitment to the Brookfield Global Transition Fund, we are investing our capital in a way that will benefit the environment and society while also earning attractive risk-adjusted returns to pay pensions. This investment is an example of how we can use our scale, engagement and influence to help accelerate the transition to a low-carbon economy and create a sustainable climate future. We are pleased to partner with Brookfield on this fund to strategically complement our own global infrastructure and climate-related investing activities and expertise.”
Steve Howard, Chief Sustainability Officer of Temasek added, “The global transition to net-zero emissions presents unique opportunities for investors seeking to deliver sustainable value over the long term. The partnership with Brookfield complements our strategy to invest in climate-aligned initiatives which we believe will be instrumental in accelerating carbon abatement and helping deliver on the Paris Agreement. We look forward to combining capabilities, experience, and catalytic capital to drive critical climate action at scale.”
About the Brookfield Global Transition Fund
The Brookfield Global Transition Fund, co-led by Mark Carney, Brookfield Vice Chair and Head of Transition Investing, and Connor Teskey, CEO of Brookfield Renewables, is Brookfield’s inaugural impact fund focusing on investments that accelerate the global transition to a net-zero carbon economy, while delivering strong risk-adjusted returns to investors. The Fund targets investment opportunities relating to reducing greenhouse gas emissions and energy consumption, as well as increasing low-carbon energy capacity and supporting sustainable solutions. Consistent with its dual objectives of earning strong risk-adjusted returns and generating a measurable positive environmental change, the Fund will report to investors on both its financial and environmental impact performance.
About Brookfield Asset Management
Brookfield Asset Management is a leading global alternative asset manager with over US
Brookfield’s renewable power business is a leader in decarbonization strategies, as one of the world’s largest investors, owners, and operators of renewable power with approximately
As a signatory to the Net Zero Asset Managers initiative, Brookfield is committed to the goal of achieving net-zero greenhouse gas emissions by 2050 or sooner—in line with the Paris Agreement—across all assets under management.
Brookfield Asset Management is listed on the New York and Toronto stock exchanges under the symbols BAM and BAM.A, respectively.
About Ontario Teachers’ Pension Plan Board
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is the administrator of Canada’s largest single-profession pension plan, with C
About Temasek
Temasek is an investment company with a net portfolio value of S
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with
About IMCO
The Investment Management Corporation of Ontario (IMCO) manages
For more information, please contact:
| Brookfield Media | Brookfield Investor Relations |
| Claire Holland | Cara Silverman |
| Tel: +1 437 991 2978 | Tel: +1 416 649 8196 |
| claire.holland@brookfield.com | cara.silverman@brookfield.com |
Disclaimer
Brookfield is not making any offer or invitation of any kind by this communication and under no circumstances is it to be construed as a prospectus or an advertisement. No reliance may, nor should, be placed upon the contents of this communication by any person for any purposes whatsoever. Without limiting the generality of the foregoing, this communication does not constitute an invitation or inducement of any sort to any person in any jurisdiction in which such an invitation or inducement is not permitted or where Brookfield is not qualified to make such invitation or inducement. In particular, this communication is not intended to constitute, and should not be construed as, marketing of the Fund for any purposes of the Alternative Investment Fund Managers Directive or the Alternative Investment Fund Managers Regulations 2013. The Fund is offered and sold only to investors meeting certain qualifications, including “accredited investors” under the U.S. Securities Act of 1933, as amended.
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Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the inability to accurately or effectively measure the positive impact of investments; the inability for portfolio companies to successfully transition their businesses towards net-zero business models; heightened costs, obligations, restrictions and uncertainties in jurisdictions in which Brookfield does business or in which the Fund is marketed; uncertainties, including unexpected delays or costs, relating to projects that involve significant construction or development; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business, including as a result of the recent global pandemic caused by a novel strain of coronavirus, COVID-19; business competition; the use of debt to finance our business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; risks relating to our insurance coverage; the possible impact of international conflicts and other developments including terrorist acts; potential environmental liabilities; changes in tax laws and other tax related risks; dependence on management personnel; illiquidity of investments; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits therefrom; operational and reputational risks; catastrophic events, such as earthquakes, hurricanes or pandemics/epidemics; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States. In addition, our future results may be impacted by risks associated with COVID-19, and the related global reduction in commerce and travel and substantial volatility in stock markets worldwide, which may result in a decrease of cash flows and impairment losses and/or revaluations on our investments, and we may be unable to achieve our expected returns.
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