Brookfield wins US$1bn mandate from Nuclear Liabilities Fund

Brookfield Asset Management has secured an initial US$1 billion mandate from the UK's Nuclear Liabilities Fund to manage a multi-asset portfolio.

The mandate will be managed by Brookfield's Investment Solutions Group (ISG) and will invest globally across infrastructure, energy, private equity, real estate and private credit strategies. The portfolio is expected to combine fund commitments, direct investments and co-investments.

Brookfield is set to help the Nuclear Liabilities Fund achieve the required returns to cover the future costs of nuclear decommissioning in the UK.

The partnership has been structured around the long-term liabilities disciplined capital allocation, with investment proceeds expected to be reinvested rather than routinely distributed, Brookfield said, adding the approach is intended to keep capital invested across market cycles and support long-term compounding.

Alper Daglioglu, head of Brookfield's ISG , said the fund's unusually long investment horizon created an opportunity to take a different approach to portfolio construction.

"NLF has an exceptionally long investment horizon, and that creates an opportunity to invest differently," Daglioglu said.

"Our partnership is built on a shared belief in long-term thinking, disciplined capital allocation and the power of compounding over decades."

NLF chief executive Melissa Hope said Brookfield was selected following a competitive process, citing its global investment capabilities and experience across market cycles.

"Brookfield stood out for its depth of global investment capability, long-term perspective and disciplined approach to portfolio construction and governance," Hope said.

"This partnership is designed to support our obligations over a multi-decade horizon."

The NLF was established in 1996 as an independent ring-fenced fund to meet the costs of decommissioning eight nuclear power stations. Around £3 billion in decommissioning costs have been paid to date.

The decommissioning program is expected to continue into the next century, with the fund investing its assets to generate the returns required to meet future obligations and reduce reliance on taxpayers.

Brookfield's mandate reflects the fund's long-term funding requirements, with the portfolio able to evolve as investment opportunities and the NLF's needs change over time.