Brookfield Asset Management announced that it has raised $20 billion in commitments and strategic capital at the final close of the Brookfield Global Transition Fund (BGTF II), marking the largest-ever private fund dedicated to the transition to clean energy.
In addition to exceeding its fundraising target and exceeding the size of its record-breaking predecessor BGTF fund, Brookfield also announced that the new fund has also secured approximately $3.5 billion of co-investment into its portfolio, bringing the total capital raised to $23.5 billion.
Brookfield launched BGTF II in 2023, after closing its predecessor fund the prior year at $15 billion. The firm’s BGTF investment strategy focuses on three primary areas, including the expansion of clean energy, the transformation of companies operating in carbon-intensive sectors to more sustainable business models, and the acceleration of sustainable solutions, with investments across North America, South America, Europe, and Asia Pacific regions.
Brookfield said that the fund has received contributions from institutional investors worldwide, including several investors new to the Brookfield transition platform. Major commitments include $2 billion from UAE-backed climate investment platform ALTÉRRA and $1.5 billion from Norway’s $1.8 trillion oil fund Norges Bank Investment Management.
According to Brookfield, BGTF II has already deployed $5 billion, with portfolio companies including clean energy developer Neoen, U.S.-based energy developer Geronimo Power, and India-based renewable energy platform Evren.
Connor Teskey, President of Brookfield Asset Management and CEO for Renewable Power & Transition, said:
“Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favor low carbon resources. Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”
