Caisse de Depot et Placement du Quebec, Montreal, is one the new investors in Brookfield Asset Management’s Catalytic Transition Fund, which has now raised $2.4 billion in funding as it targets a total fundraise of up to $5 billion.
Joining CDPQ are Singapore-based sovereign wealth funds GIC and Temasek Holdings and British insurance giant Prudential, said a Sept. 23 news release from Brookfield. GIC has an estimated $770 billion in assets; Temasek had S$389 billion ($287.9 billion) in assets as of March 31.
A spokesperson for Brookfield, which has approximately $1 trillion of assets under management, declined to give a breakdown of the individual amounts provided by each investor. CDPQ, which had C$452 billion ($330 billion) in assets as of June 30, could not be immediately reached for further details.
ALTERRA, the private investment vehicle for climate finance formed by the United Arab Emirates at the COP28 Climate Summit last June, provided the initial $1 billion in capital for the Brookfield fund. Brookfield itself has committed to provide 10% of the fund’s total $5 billion target.
The fund is focused on clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East and Eastern Europe, according to the Brookfield release.
Brookfield noted in the release that clean energy investment in emerging markets needs to increase sixfold over current levels to reach the $1.6 trillion required annually by the early 2030s in line with global net-zero targets.
The transition fund expects to announce its initial investments later this year, and a traditional first close — with additional capital from Brookfield’s ongoing fundraising efforts — is expected by early 2025, the release added.
“Globally, around $6.5 trillion will be needed yearly for the energy transition over the next 15 years,” said Marc-Andre Blanchard, executive vice-president and head of CDPQ global and global head of sustainability, in the Brookfield release. “It’s a staggering figure, and various partnerships and investments are necessary to accelerate the path forward.”
