Brookfield Asset Management, a Canada-based asset management company, announced that it had raised $7 billion in the initial close of its Brookfield Global Transition Fund.
The fund raised will be invested in carbon-incentive businesses and renewable energy companies, focusing on the global transition to a net-zero economy.
As a part of the closing, Ontario Teachers’ Pension Plan Board and Singapore-based investment company Temasek, founding investment partners, committed significant capital for the fund. The founding investment partners are also committed to achieving a net-zero economy by 2050 or earlier.
Investment Management Corporation of Ontario and PSP Investments also committed investments for the fund, the company said in a press statement. The company also said that the fund would be utilized to target large-scale decarbonization-driven investment opportunities.
The company targets to raise $12.5 billion and complete the traditional first and second close, with additional capital from Brookfield’s diverse group, by the end of 2021.
Mark Carney, Brookfield’s Vice-Chair and Head of Transition Investing, said, “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,” Carney added.
Bruce Flatt, Chief Executive Officer of Brookfield Asset Management, added that private capital would play an essential role in addressing climate 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.
Ziad Hindo, Chief Investment Officer of Ontario Teachers’ Pension Plan Board, 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 fund will also strategically complement our global infrastructure and climate-related investing activities and expertise.”
In January 2020, the Emami Group, a Kolkata-based conglomerate, sold its solar power business to Brookfield Asset Management through a 100% stake sale.
Mercom had earlier reported that ReneSola, a fully integrated solar project developer and operator, signed an exclusivity agreement with an affiliate of Brookfield Asset Management for negotiation to sell its distributed generation operation solar assets in China.