Brookfield raises $7b from Temasek, others for impact fund to cut carbon emissions

People tend to vegetables growing in a field as emission rises from cooling towers at a coal-fired power station in Tongling, Anhui province, China, on Wednesday, Jan. 16, 2019. Photographer: Qilai Shen/Bloomberg

Toronto-based alternative asset manager Brookfield Asset Management has closed an initial $7 billion for the new Brookfield Global Transition Fund (BGTF), which helps businesses cut their carbon emissions, according to a press statement.

The fund’s founding investment partners Ontario Teachers’ Pension Plan Board (OTPP) and Singapore state investor Temasek “made major commitments” in this round, according to the statement. Other initial investors are PSP Investments and Investment Management Corporation of Ontario.

Brookfield said it plans to raise $12.5 billion for BGTF, which would make it the largest of its kind. A traditional first and second close, with additional capital from Brookfield’s institutional investors, is expected to follow in 2021.

The fund will go towards scaling clean energy and transforming carbon-intensive businesses to achieve Paris-alignment goals — the alignment of public and private financial flows with the objectives of the Paris Agreement on climate change.

“We believe that private capital has a critical role to play in addressing climate change. Our collaboration reflects our shared determination to mobilise the resources of the private sector in delivering the innovative and impactful solutions required to effect change,” said Bruce Flatt, CEO of Brookfield.

Steve Howard, chief sustainability officer of Temasek added, “The global transition to net-zero emissions presents unique opportunities for investors seeking to deliver sustainable value over the long term. The partnership with Brookfield complements our strategy to invest in climate-aligned initiatives which we believe will be instrumental in accelerating carbon abatement and helping deliver on the Paris Agreement.”

NYSE-listed Brookfield has over $600 billion of assets under management (AUM) across real estate, infrastructure, renewable power, private equity and credit and is one of the world’s largest investors in renewable power with approximately $60 billion in AUM, installed capacity of 21,000 megawatts and a 27,000 megawatt pipeline.

Fundraisings in the clean energy sector seem to be gaining momentum. BlackRock, for instance, was reported by Nikkei Asia earlier this month to be looking to launch a $500 million fund to develop infrastructure for the transportation of green energy in emerging markets.

Similarly, Swiss infrastructure manager SUSI Partners announced in late May that it has secured a $81 million first close for its Southeast Asia-focused Asia Energy Transition Fund. Top executives of SUSI Partners told DealStreetAsia in a recent interview that the firm’s Asia Energy Transition Fund (SAETF), is committed to investing in Southeast Asia — a region the firm sees as being “overlooked by private capital” when it comes to clean energy investments.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.