To call Brookfield Asset management an infrastructure pioneer would be an understatement: Not only did the firm’s parent company start out as a light and power utility (in Brazil, of all places), but this origin story dates all the way back to 1899.
So not to be outdone now that infrastructure investment is soaring, the firm announced that it raised $10 billion in the first closing of the second Brookfield Global Transition Fund (BGTF II), including fund commitments and strategic capital. BGTF II, co-led by Mark Carney and Connor Teskey, aims to accelerate the global transition to a net-zero economy while delivering risk-adjusted returns. The fund focuses on clean energy expansion, sustainable solutions acceleration and transforming carbon-intensive companies.
The fund’s seed portfolio includes a U.K. onshore renewables developer and a solar development partnership in India, with a robust pipeline of further investment opportunities. Citing a significant acceleration in transition opportunities worldwide, the firm is targeting a larger fundraise for BGTF II than its predecessor, which closed in 2022 with a sector record of $15 billion.
Investments from BGTF I span renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear services, aligning with science-based sector pathways for net zero. According to Brookfield, the total impact of BGTF I, measured in avoided emissions, is expected to surpass the combined annual emissions of New York City, London, and Toronto.
Brookfield boasts a $161 billion infrastructure portfolio, including infrastructure debt products. With renewable investment as a consistent theme, the firm stands as one of the world’s largest investors in renewable power and climate transition assets, managing nearly 33,000 megawatts of generating capacity across five continents.
Last year broke new records for Brookfield’s renewables division. The group added almost 5,000 megawatts of capacity through development and committed $9 billion into growth along with its partners, according to a statement from the firm. According to AW Research data, the top allocators to Brookfield with a focus on real asset commitments in 2023 were: New York State Common Retirement Fund ($300 million); California Public Employees Retirement System ($1 billion) and South Carolina Retirement System ($100 million).