Brookfield Closes Record $20B Fund for Energy Transition
The fund, BGTF II, is now the world's largest private fund dedicated to clean energy and decarbonization, signaling strong investor confidence.
Brookfield Asset Management (NYSE: BAM) has successfully closed its second Global Transition Fund, BGTF II, after raising a record-breaking $20 billion. This surpasses the initial target of $17 billion and establishes the fund as the largest private fund in the world dedicated to the global shift towards clean energy.
The final close, , underscores the significant and growing appetite from institutional investors for opportunities in the decarbonization sector. The fund builds on the success of its predecessor, BGTF I, which closed at $15 billion in 2022, showcasing Brookfield's accelerating momentum in sustainable investing.
Mark Carney, Brookfield's Chair and Head of Transition Investing, highlighted the "breadth and scale of attractive investment opportunities" in the move to a net-zero economy. Connor Teskey, CEO of Brookfield's Renewable Power & Transition group, added that corporate demand for decarbonization is now the "primary driver" of investment in the space, driven by the need to supply .
BGTF II has already been active, committing over $5 billion to strategic investments. These include the acquisition of the French renewable power developer Neoen and backing for the India-based renewables developer Evren. These investments align with the fund's strategy of expanding clean energy, accelerating sustainable solutions, and transforming carbon-intensive businesses.
Brookfield's ability to raise such a substantial fund in the current economic climate signals a strong vote of confidence in its strategy and the long-term viability of the energy transition. , the fund is targeting a net internal rate of return (IRR) of 12%, aiming to deliver both strong risk-adjusted financial returns and measurable environmental impact for its investors.