Brookfield completes $10bn first closing for BGTF II

The fund focuses on green investments to support the transition to a net-zero economy

Brookfield completes $10bn first closing for BGTF II

Brookfield Asset Management has completed a $10bn first closing for its second Brookfield Global Transition Fund (BGTF II).

The achievement represents Brookfield's efforts towards contributing to the global transition towards a net-zero economy and has garnered interest from both existing and new investors.

Led by Mark Carney and Connor Teskey, BGTF II is designed to invest in initiatives that support the shift to net-zero emissions, aiming for strong risk-adjusted returns for its investors.

Following the approach of its predecessor, the fund focuses on developing clean energy, implementing sustainable solutions, and transforming high-carbon operations into more environmentally friendly practices.

Initial investments by the fund include partnerships with a renewable energy developer in the UK and a solar project in India, suggesting a proactive approach towards diversifying its investment portfolio in the renewable energy sector.

Mark Carney and Connor Teskey have observed an increase in corporate interest in decarbonization technologies, noting the potential economic and environmental advantages. Emerging trends, such as the demand for clean energy within the technology sector, the creation of new industrial supply chains, and the development of decarbonization technologies, have been identified.

BGTF II seeks to exceed the financial milestones set by the first Brookfield Global Transition Fund (BGTF I), which concluded with a $15bn closing, establishing it as a significant fund within its domain.

BGTF I has been actively involved in financing key projects in areas such as renewable power, carbon capture, and other sectors, aiming to contribute to emission reduction on a scale comparable to the annual emissions of cities like New York, London, and Toronto.