Brookfield Raises Record $15 Billion For Inaugural Global Transition Fund

Rhea-AI Summary

Brookfield has successfully closed the Brookfield Global Transition Fund (BGTF) with a remarkable total capital of $15 billion, positioning it as the largest private fund aimed at facilitating the transition to a net-zero carbon economy. This fund has seen oversubscription due to strong institutional investor demand, with $2.5 billion already deployed in significant decarbonization projects, including solar power and carbon capture initiatives. Co-led by Mark Carney and Connor Teskey, BGTF aims for strong returns while addressing climate change.

Positive

• Successfully raised $15 billion for the Brookfield Global Transition Fund, exceeding its initial target.
• $2.5 billion has been allocated to date across various impactful decarbonization projects.
• Fund investments include significant renewable energy projects in the U.S. and Germany, enhancing capacity for green energy.
• Brookfield's commitment to sustainable solutions enhances its reputation as a leader in renewable energy.

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• None.

Largest private fund ever raised to support the transition to net zero

The Fund invests in the transformation of carbon-intensive industries as well as the development and accessibility of clean energy

$2.5 billion of capital deployed or allocated to date

BROOKFIELD, NEWS, June 22, 2022 (GLOBE NEWSWIRE) -- Brookfield (NYSE: BAM, TSX: BAM.A) Brookfield announced today that it has reached the final institutional close for the Brookfield Global Transition Fund (“BGTF” or “the Fund”) with total capital raised of $15 billion, making it the world’s largest private fund dedicated to facilitating the global transition to a net-zero carbon economy. The $15 billion includes investments from institutional investors in and alongside the Fund, as well as amounts reserved for the private wealth channel.

Highlighting strong industry support for decarbonization, demand for the Fund significantly exceeded its initial hard cap, and the final fund size was oversubscribed. A diverse group of more than 100 investors from around the world committed to the Fund, including public and private pension plans, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices. Brookfield is the largest investor in the Fund, underscoring the firm’s longstanding alignment of interests with those of its investors.

BGTF, co-headed by Mark Carney and Connor Teskey, focuses on investments to accelerate the global transition to a net zero economy while delivering strong risk-adjusted returns for investors. The Fund invests in the transformation of carbon-intensive industries, as well as the development and accessibility of clean energy sources, leveraging Brookfield’s leadership in renewable power.

Approximately $2.5 billion has been deployed or allocated from the Fund to date, spanning a range of decarbonization technologies with investments at significant scale. These include:

• The acquisition of U.S. and German solar power and battery developers, with a combined renewable power development pipeline capacity of approximately 25,000 MW;
• An investment in a carbon capture and storage developer to fund the rollout of the company’s critical technology across energy and industrial facilities in North America; and
• A development partnership with a U.K. battery storage provider to roll out up to 1,200 MW of capacity alongside 200 MW of co-located solar.
  

The Fund also has a robust pipeline of potential investments that reflects increasing demand from businesses and governments to meet their decarbonization goals and enhance energy security.

Mark Carney, Brookfield Vice Chair and Head of Transition Investing, said:

“With the global carbon budget being rapidly run down, now is the time for comprehensive, determined action. That means deploying capital across the economic spectrum from scaling clean energy generation, to transforming traditional utilities and to providing sustainable solutions for heavy industries like steel and cement. This Fund provides significant scale of capital with catalytic long-term investment the world needs to help put our planet on a sustainable net-zero pathway.”

Connor Teskey, CEO of Brookfield Renewable, said:

“Investor demand for this fund has been exceptionally strong. Our investment partners are looking for an experienced investor who can guide their contribution to what is both a critical requirement and a major global opportunity. Brookfield has been reliably investing in renewable power for decades, and we are uniquely well positioned to be both a capital provider and an operating partner to the world’s major businesses as they accelerate their decarbonization plans.”

While the Fund is now closed to institutional investors, it remains open to a limited number of private wealth investors through Brookfield Oaktree Wealth Solutions, which brings institutional-caliber alternative solutions and insights to individual investors through financial advisors.

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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 Renewable, 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 premier global alternative asset manager with $725 billion of assets under management across renewable power & transition, infrastructure, private equity, real estate, and credit & insurance solutions. With a history as an owner and operator that dates back more than 100 years, Brookfield owns and operates long-life assets and high-quality businesses that help form backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to institutional investors, sovereign wealth funds and individual investors around the world.

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 $65 billion in assets under management, installed capacity of 21,000 MW and a 69,000 MW pipeline.

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.

Communications & Media Simon Maine Tel: +44 (0)7398 909 278 Email: simon.maine@brookfield.com

Investor Relations: Cara Silverman Tel: +1 416 649 8196 Email: 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.

This communication contains “forward-looking information” within the meaning of applicable securities laws and regulations. Forward-looking statements include statements that are predictive in nature or depend upon or refer to future events or conditions, include statements regarding our operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts,” “likely,” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

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.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements or information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

FAQ

What is the total capital raised for Brookfield's Global Transition Fund?

The total capital raised for the Brookfield Global Transition Fund is $15 billion.

How much of the capital has been deployed from the Brookfield Global Transition Fund?

Approximately $2.5 billion has been deployed or allocated from the Brookfield Global Transition Fund.

Who are the key leaders of the Brookfield Global Transition Fund?

The fund is co-headed by Mark Carney and Connor Teskey.

What are the main investment focuses of the Brookfield Global Transition Fund?

The fund focuses on the transformation of carbon-intensive industries and the development of clean energy sources.

What is the primary goal of the Brookfield Global Transition Fund?

The primary goal of the fund is to facilitate the global transition to a net-zero carbon economy while delivering strong risk-adjusted returns for investors.