Additional capital raised from CDPQ, GIC, Prudential and Temasek, among others
Targeting up to $5 billion, anchored by $1 billion catalytic capital investment by ALTÉRRA
BROOKFIELD, NEWS, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Brookfield Asset Management (NYSE:BAM, TSX:BAM) ("Brookfield") today announced an initial closing of $2.4 billion for the Catalytic Transition Fund ("CTF" or "the Fund"), marking a significant milestone towards the target of raising up to $5 billion for deployment towards clean energy and transition assets in emerging markets.
CTF was previously launched at COP28 with up to $1 billion of catalytic capital provided by ALTÉRRA funds ("ALTÉRRA"), the world's largest private investment vehicle for climate finance based in the United Arab Emirates with the purpose of mobilizing investment at scale to finance a new climate economy. As it looks towards innovative approaches to catalyze capital for climate solutions in emerging markets, ALTÉRRA's fund commitment has been designed to receive a capped return, thereby improving risk-adjusted returns for other investors in the Fund. Brookfield has committed to provide 10% of the Fund's target to align itself with investment partners and investors.
Today, Brookfield is announcing four additional investment partners for CTF: CDPQ, GIC, Prudential and Temasek, among others. These leading institutional investors are important global players in transition investing and will be valued partners to Brookfield as CTF gets deployed in its target markets. CTF has now raised approximately half of the $5 billion total capital targeted for the Fund.
CTF is focused on deploying capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. This strategic partnership will help drive clean energy investment into emerging markets, where investment needs to increase sixfold over current levels to reach the $1.6 trillion required annually by the early 2030s in line with global net zero targets. The Fund benefits from ALTERRA's push to significantly expand private finance and fuel ambitious new climate strategies, as well as Brookfield's global leadership in clean energy and transition investing, building on over three decades of operational experience in renewable energy technologies and its track record as the world's largest transition investor among alternative asset managers.
The Fund expects to announce its initial investments later in 2024, and a traditional first close – with additional capital from Brookfield's ongoing fundraising efforts through its extensive network of institutional investors – is expected by early 2025.
H.E Majid Al-Suwaidi, CEO of ALTÉRRA, said:
"CTF demonstrates ALTÉRRA's catalytic capital as a powerful multiplier of climate finance to the Global South. This early momentum around CTF shows strong global demand not just for climate strategies, but for opportunities to invest in climate solutions in emerging markets. ALTÉRRA looks forward to working with CDPQ, GIC, Prudential and Temasek and other partners who share ...
