Impact Investing | June 23, 2022

Brookfield hauls in $15 billion for energy transition fund

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, June 23 – Not bad as first-time funds go.

Brookfield closed out an institutional fundraising campaign for its inaugural Global Transition Fund with $15 billion, in what it says is the largest private fund ever raised supporting the transition to net zero. More than 100 investors from around the world, including pension funds, sovereign wealth funds, endowments and foundations, financial institutions, and family offices joined founding investment partners Ontario Teachers’ Pension Plan Board and Temasek. Toronto-based Brookfield is the largest investor. 

Brookfield said the fund was oversubscribed.

Scaling up

The 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,” Mark Carney, who co-leads the fund with Brookfiled Renewable’s Connor Teskey, said in a statement.

The Global Transition Fund has already invested $2.5 billion in developers of solar power, batteries and carbon capture and storage.

Evergreen climate tech fund

Separately, U.K.-based investment firm IP Group launched Kiko Ventures, a $450 million “evergreen” climate tech fund.

Drawing on the resources of FTSE-listed IP Group, the fund is designed to be flexible without the typical 10-year time horizon.

The fund will invest in climate tech and regenerative technologies, in Series A and B rounds as well as potentially public markets.

Kiko Ventures is run by veteran climate tech investors who have backed startups including Ceres Power, First Light Fusion, and mobility software company Oxbotica.