Brookfield has completed the final institutional closing of its flagship energy transition strategy, the Brookfield Global Transition Fund II (BGTF II). The fund has raised a total of $20 billion in commitments and strategic capital from a diverse group of both existing and new investors.
This fundraising effort has not only surpassed the initial target but has also set a new record, making BGTF II the largest private fund dedicated to facilitating the global transition to clean energy.
The new fund has attracted contributions from institutional investors worldwide, including several entities that are engaging with Brookfield’s transition platform for the first time. Among significant commitments are $2 billion from ALTÉRRA and $1.5 billion from Norges Bank Investment Management, both of which demonstrate strong confidence in the fund’s objectives and strategy.
Beyond these commitments, the Fund has secured around $3.5 billion in co-investments, which adds to the total capital raised for the BGTF II strategy, bringing the overall figure to approximately $23.5 billion. This capital will be instrumental in implementing the Fund’s investment strategy, which aims to promote clean energy solutions.
To date, more than $5 billion has already been allocated to a range of high-quality investments in the clean energy sector. One notable investment is in Neoen, which involved a public-to-private takeover of a leading global developer and operator of renewable power and battery storage solutions. This acquisition is expected to significantly enhance operational capabilities and expand market reach.
Another key investment was made in Geronimo Power, which entails the acquisition of a large-scale, diversified energy developer in the United States. This company holds a substantial operating and development pipeline in critical power markets, positioning Brookfield for further growth in the domestic clean energy landscape.
Additionally, the Fund has formed a joint venture with Evren in India, aimed at accelerating the development of over 10 GW of wind, solar, and storage projects. This partnership is a strategic move to tap into India’s rapidly growing renewable energy market, which offers immense potential for expansion in sustainable energy generation.
Brookfield’s previous flagship transition fund, BGTF I, had raised $15 billion and made a series of strategic investments across various energy technologies worldwide. These included renewables, carbon capture solutions, sustainable aviation fuel, and battery storage technologies, along with a significant stake in Westinghouse, a global leader in nuclear services.
Brookfield has recently established framework energy supply agreements with major technology companies, including Microsoft and Google, marking the largest deals ever made in wind, solar, and hydroelectric energy. These partnerships strategically position Brookfield to continue leading the charge in the global transition to clean energy solutions.
KEY QUOTE:
“Energy demand is growing fast, driven by the growth of artificial intelligence as well as electrification in industry and transportation. Against this backdrop we need an ‘any and all’ approach to energy investment that will continue to favor low carbon resources. Our strategy will succeed by investing in the technologies that will deliver clean, abundant, and low-cost energy and transition solutions that underpin the global economy.”
Connor Teskey, President of Brookfield Asset Management and CEO for Renewable Power & Transition
