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Brookfield raises record amount for ESG fund

Brookfield has raised US$15 billion from institutional investors for its Global Transition Fund, making it the largest fund of its kind.

Brookfield reached the final institutional close for the fund, amassing US$15 billion from more than 100 public and private pension funds, sovereign wealth funds, insurance companies, endowments and foundations, financial institutions, and family offices. Brookfield itself is the largest investor in the fund.

The fund actually exceeded its initial hard cap of US$12.5 billion, with the final size oversubscribed, Brookfield said. The manager said the fund remains open to some private wealth investors via Brookfield Oaktree Wealth Solutions.

Brookfield vice chair and head of transition investing Mark Carney and chief executive of Brookfield Renewable Connor Teskey are co-heads of the fund, which invests in carbon-intensive industries with the aim of accelerating their transition to net zero.

About US$2.5 billion has been deployed or allocated by the fund to date, including an investment in a carbon capture and storage developer, a development partnership with a UK battery storage provider, and the acquisition of US and German solar power and battery developers.

"With the global carbon budget being rapidly run down, now is the time for comprehensive, determined action," Carney said.

"That means deploying capital across the economic spectrum from scaling clean energy generation, to transforming traditional utilities and to providing sustainable solutions for heavy industries like steel and cement. This 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."

Meanwhile, Teskey reinforced that investor demand for the fund has been exceptional.

"Our investment partners are looking for an experienced investor who can guide their contribution to what is both a critical requirement and a major global opportunity," he said.

"Brookfield has been reliably investing in renewable power for decades, and we are uniquely well positioned to be both a capital provider and an operating partner to the world's major businesses as they accelerate their decarbonization plans."

Read more: BrookfieldBrookfield Oaktree Wealth SolutionsBrookfield RenewableConnor TeskeyMark Carney