Brookfield Asset Management has been selected by the U.K.’s Nuclear Liabilities Fund to manage a long-term multi-asset investment mandate with an initial $1 billion commitment, equivalent to approximately £750 million.
The mandate is designed to generate long-term investment returns that can help fund the future costs associated with decommissioning eight U.K. nuclear power stations.
Brookfield’s Investment Solutions Group will manage the portfolio.
The group is chaired by Oaktree Co-Chairman Howard Marks and led by Alper Daglioglu and builds customized portfolios around institutional investors’ objectives, risk requirements and investment horizons.
NLF’s capital will be invested globally across Brookfield’s infrastructure, energy, private equity, real estate and private credit strategies.
The portfolio is expected to include a combination of fund commitments, direct investments and co-investments.
The mandate has been structured around the unusually long duration of the Nuclear Liabilities Fund’s obligations.
Instead of routinely distributing investment proceeds, the portfolio is expected to reinvest capital into new opportunities, allowing assets to remain invested through multiple market cycles and potentially compound over a multi-decade period.
The Nuclear Liabilities Fund was established in 1996 as an independent ring-fenced vehicle responsible for helping meet the costs of decommissioning eight nuclear power stations in the U.K.
Approximately £3 billion of decommissioning costs have been paid to date, while the broader decommissioning program is expected to continue into the next century.
Brookfield manages more than $1 trillion in assets across infrastructure, energy, private equity, real estate and credit.
Its institutional client base includes public and private pension plans, endowments, foundations, sovereign wealth funds, financial institutions and insurance companies.
KEY QUOTES:
“NLF has an exceptionally long investment horizon, and that creates an opportunity to invest differently. Our partnership is built on a shared belief in long-term thinking, disciplined capital allocation and the power of compounding over decades. We will draw on the breadth of Brookfield capabilities to customize a portfolio around NLF’s specific objectives and continue to evolve that portfolio as opportunities and needs change over time. We are honored by the trust NLF has placed in us and recognize the responsibility that comes with this mandate.”
Alper Daglioglu, Head of Brookfield’s Investment Solutions Group
“Our mandate is to ensure that sufficient assets are available to meet the future costs of decommissioning eight of the UK’s nuclear power stations. Following a competitive selection process, Brookfield stood out for its depth of global investment capability, long-term perspective and disciplined approach to portfolio construction and governance. This partnership is designed to support our obligations over a multi-decade horizon and Brookfield’s breadth of capabilities, long-term investment approach and experience investing through multiple market cycles make them a natural partner for this important mandate.We look forward to working together in the years ahead.”
Melissa Hope, CEO of the Nuclear Liabilities Fund
