Brookfield Raises $2.4 Billion for Its UAE-backed Fund
This is part of a plan to raise up to $5 billion for investments in clean energy and transition assets in emerging markets.
Canada’s Brookfield Asset Management has announced the initial closing of $2.4 billion for the UAE-backed Catalytic Transition Fund (CTF), part of a plan to raise up to $5 billion for investments in clean energy and transition assets in emerging markets.[1]
The fund was launched at COP28 with up to $1 billion in support from ALTÉRRA, a climate finance-focused investment vehicle-based in the UAE.
ALTÉRRA’s contribution aims to improve risk-adjusted returns for other investors by accepting a capped return. Brookfield has committed to providing 10% of the Fund's target amount to align its interests with other investors.
Brookfield has also secured commitments from four institutional investors: Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek. These partners will work with Brookfield as the fund is deployed in regions including South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
CTF aims to support clean energy investment in emerging markets, which need increased funding to meet global net-zero targets by the early 2030s. Current investment levels must rise significantly to reach the required $1.6 trillion annually.
The initiative is part of ALTÉRRA’s efforts to increase private finance for climate projects and Brookfield’s experience in renewable energy. The fund expects to make its initial investments later in 2024, with additional capital from ongoing fundraising anticipated by early 2025.