Brookfield Asset Management’s record fundraise, buoyed by billion-plus dollar injections from institutional investors, creates one of the largest energy transition funds and signals continued global appetite for big renewable energy plays.
As data center growth drives up energy demand, said Brookfield’s Connor Teskey, “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.”
Co-investment
Brookfield Global Transition Fund II outraised its predecessor by $5 billion. It had been looking to raise as much as $25 billion.
Last week, Norges, the Norwegian sovereign wealth fund, committed $1.5 billion to the fund. Alterra, the UAE’s $30 billion climate fund launched at COP28, kicked in $2 billion. The California Public Employees’ Retirement System put in $1 billion. Singapore-based Temasek and other investors contributed $3.5 billion for co-investments alongside the fund, bringing the total to $23.5 billion.
Brookfield has already deployed more than $5 billion into investments including Geronimo Power, a large scale US energy developer, Evren, a wind, solar and storage joint venture in India, and a take-private deal for French renewable energy developer Neoen.
Teskey has emphasized the megatrends of decarbonization, deglobalization, and digitialization as driving the firm’s growth. The latest raise by the New York-based firm, with $1 trillion in assets under management, starkly illustrates the bifurcated fundraising market, where the big get bigger and smaller fund managers struggle to close funds.
