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Highlights

  • First dedicated fund introduced for transition investing in emerging markets 
  • $1 billion committed by UAE-backed ALTÉRRA 
  • CTF first close expected by the end of 2024

Brookfield Asset Management (NYSE: BAM, TSX: BAM)  (“Brookfield”) and Alterra Management Limited announced today the launch of the Catalytic Transition Fund  (“CTF” or “the Fund”) focused on directing capital into clean energy and transition assets in emerging  economies.  

With the urgent need to cut emissions and accelerate the climate transition, the Brookfield-managed CTF  will harness a $1 billion commitment by ALTÉRRA funds (“ALTÉRRA”) to catalyze up to $5 billion in total  capital for deployment into emerging markets. Since announcing the launch of CTF in December 2023,  Brookfield has been focused on developing the investment strategy, identifying an advanced pipeline of  potential investments and pre-marketing to potential investment partners. 

Launched at COP28 in Dubai, ALTÉRRA is the world’s largest private investment vehicle for climate  finance. It responds to the call for more ambitious funding models for the climate transition, particularly in  developing countries, and to the urgent need to accelerate and scale climate action. At this critical juncture  for driving climate action, ALTÉRRA is committed to deploying $30 billion in climate investments with the  goal to catalyze $250 billion with partners by 2030.  

Emerging and developing economies outside of China receive less than 15% of global clean energy  investment, despite representing nearly one third of global emissions and often yielding greater emissions  reductions per dollar invested than in developed countries. To align with the goals of the Paris Agreement,  clean energy investment in these markets will need to increase six times over current levels to reach $1.6  trillion per year by the early 2030s. 

CTF represents a unique private capital approach to crowd in capital for clean energy and transition assets in emerging markets. Managed by Brookfield and driven by the catalytic capital of ALTÉRRA, it will accelerate decarbonization investments while generating attractive risk-adjusted returns in traditionally  underserved emerging markets. ALTÉRRA is offering a capped return on its CTF commitment, improving  the risk-adjusted returns for investors in the Fund and unlocking compelling investment opportunities for  private investors. By acting as a catalyst, ALTÉRRA aims to significantly expand private finance and fuel  ambitious new climate strategies in both developing and developed markets. 

The strategic partnership between Brookfield and ALTÉRRA benefits from Brookfield’s global leadership  and strong track record as the world’s largest transition investor among private fund managers. The first  fund in the Brookfield Global Transition Fund series (BGTF I) raised a record $15 billion in 2022. In February 2024, the second fund in the series (BGTF II) announced a first close of $10 billion and is on track to be  larger than its predecessor.  

For CTF, the capital raised will be deployed in target emerging markets, including in South and Central  America, South and Southeast Asia, the Middle East, and Eastern Europe. At least 10% of the Fund’s total  capital will be contributed by Brookfield ensuring that its interests align with investment partners. A first  close for CTF is expected by the end of 2024.  

Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management, said: 

“The Catalytic Transition Fund is a private market solution to the global challenge of delivering transition  investment to emerging markets. Brookfield is already a leading transition investor in these regions and has  first-hand knowledge of the incredible opportunity and impact that is available in these chronically  underfunded markets. Having this dedicated capital for emerging markets will complement our existing  Brookfield Global Transition Fund strategy and further accelerate the growth of clean energy and transition  investments in the future.” 

H.E Majid Al-Suwaidi, CEO of ALTÉRRA, said:  

“While we are making progress in addressing climate change, we need to pick up the pace and scale significantly to meet our collective climate goals. ALTÉRRA wants to challenge the status quo of how we  invest in climate solutions, and our investment in the Catalytic Transition Fund reflects our ongoing  commitment to go beyond business-as-usual. We are passionate about ensuring capital goes where it is  needed and that it drives impact for countries, communities and business. Our catalytic capital will be  deployed to supercharge investment in emerging markets – wherever we see great potential for delivering  meaningful climate impact and positive economic return.”

TPG, a leading global alternative asset management firm, and ALTÉRRA, the world’s largest private investment vehicle for climate change action launched at the World Climate Action Summit at COP28, today announced an aggregate US$1.5 billion commitment to the next generation of TPG Rise Climate private equity funds, including the new Global South Initiative.

The Global South Initiative will be managed by TPG and is purpose built to accelerate and attract institutional capital at scale by offering return enhancement to encourage private equity investments in high growth climate opportunities in the Global South. The initiative will receive up to US$500 million in innovative catalytic capital from ALTÉRRA TRANSFORMATION. In addition, TPG Rise Climate will channel approximately US$1 billion from its TPG Rise Climate II fund to co-invest alongside the initiative. TPG will also raise additional commitments for the Global South Initiative from its broader network of limited partners.

The Global South Initiative will leverage TPG’s decades of experience investing across industries in the Global South. In the climate sector alone, TPG has driven over US$4 billion of investment in over 20 climate solutions companies across nearly 20 countries in the Global South. In addition to the parties’ shared commitment to the new climate economy, the Fund is aligned with the pillars that underpin COP28’s Action Agenda, namely: Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies.

ALTÉRRA represents the next step in the UAE's decades-long journey towards climate action and is dedicated to investing in the energy systems of tomorrow.

In addition to the Global South Initiative, ALTÉRRA will commit approximately US$1 billion to TPG Rise Climate II from ALTÉRRA ACCELERATION. Rise Climate II will continue Rise Climate I’s strategy of pursuing private equity investments globally that are driving quantifiable carbon aversion across Rise Climate’s core climate sector themes – energy transition, green mobility, sustainable fuels, sustainable products and materials, and carbon solutions. TPG is targeting US$10 billion in aggregate commitments across its Global South Initiative and TPG Rise Climate II.