Monday, 27 September 2021

Brookfield announces initial $7 billion closing for Brookfield Global Transition Fund

5 min read

BROOKFIELD NEWS, July 27, 2021 (GLOBE NEWSWIRE) -- Brookfield Asset Management (NYSE: BAM, TSX: BAM.A) (“Brookfield”) today announced an initial US$7 billion closing for the Brookfield Global Transition Fund (“BGTF” or the “Fund”), establishing BGTF as the largest fund focused on the global transition to a net-zero economy. The Fund will build on Brookfield’s leadership in renewable power and deep operating capabilities to scale clean energy and invest capital to catalyze the transformation of carbon-intensive businesses to achieve Paris-alignment.

The founding investment partners, Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and Temasek, have both committed to achieving net zero by 2050 or sooner. To this end, included as part of this closing, Ontario Teachers’ and Temasek are committing significant capital in, as well as strategically investing alongside, the Fund.

PSP Investments (“PSP Investments”) and Investment Management Corporation of Ontario (“IMCO”) are also committing as meaningful initial investors in the Fund.

Brookfield’s partnership with these leading global investors, combined with Brookfield’s position as the Fund’s largest investor, reinforces the institutions’ collective dedication to responsible investing and the transition to a net-zero carbon economy. It also provides the Fund with size, scale and flexibility to target the largest and most attractive decarbonization-driven investment opportunities.

As a result of this initial capital, a hard cap of US$12.5 billion has been established. It is expected that a traditional first and second close, with additional capital from Brookfield’s diverse group of institutional investors, will occur over the balance of 2021.

Bruce Flatt, CEO of Brookfield said, “We are thrilled to have this group of strategic, like-minded partners investing alongside us in the Brookfield Global Transition Fund. We all believe that private capital has a critical role to play in addressing climate change. Our collaboration reflects our shared determination to mobilize the resources of the private sector in delivering the innovative and impactful solutions required to effect change. We look forward to working closely with these and other investors in the Fund to deliver a positive societal impact while generating attractive returns.”

Mark Carney, Brookfield Vice Chair and Head of Transition Investing, added, “Brookfield is committed to achieving net-zero by 2050 or sooner, and to accelerating the global net-zero transition. As the world increasingly focuses on sustainability, the required capital and investable opportunities are expanding faster than originally expected, creating an even greater opportunity for large-scale investments that address climate change and generate attractive returns. Through this Fund, we are pleased to partner with best-in-class institutions to commit the capital required to scale clean energy and catalyze companies onto Paris-aligned net-zero pathways.”

He continued, “Enabling the transition will require global reach, large-scale capital, and deep operating expertise in renewable energy and decarbonization. As a leader across these capabilities, we look forward to engaging with these and other investors to drive meaningful and measurable change to the benefit of their portfolios and our planet.”

Ziad Hindo, Chief Investment Officer of Ontario Teachers’ said, “By making a significant commitment to the Brookfield Global Transition Fund, we are investing our capital in a way that will benefit the environment and society while also earning attractive risk-adjusted returns to pay pensions. This investment is an example of how we can use our scale, engagement and influence to help accelerate the transition to a low-carbon economy and create a sustainable climate future. We are pleased to partner with Brookfield on this fund to strategically complement our own global infrastructure and climate-related investing activities and expertise.”

Steve Howard, Chief Sustainability Officer of Temasek added, “The global transition to net-zero emissions presents unique opportunities for investors seeking to deliver sustainable value over the long term. The partnership with Brookfield complements our strategy to invest in climate-aligned initiatives which we believe will be instrumental in accelerating carbon abatement and helping deliver on the Paris Agreement. We look forward to combining capabilities, experience, and catalytic capital to drive critical climate action at scale.”

Re-disseminated by The Wealth and Society



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