Brookfield Asset Management announced that it has raised $2.4 billion for its newly launched Catalytic Transition Fund (CTF), a fund aimed at promoting clean energy investments in underserved emerging markets. The fund, which officially launched in June 2024, has already attracted major institutional investors just three months after its debut. The CTF was first introduced at the COP28 climate conference in Dubai in December 2023, with a $1 billion anchor commitment from ALTÉRRA, a UAE-backed climate investment platform. The Catalytic Transition Fund is focused on deploying capital into clean energy and transition assets in emerging markets across South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. This fund aims to address both the commercial opportunity and the pressing climate needs of these regions, which have been historically underserved by investment. Brookfield is looking to raise $5 billion for the CTF, and the asset manager has pledged to contribute 10% of that amount compared to other investors.
In particular, ALTÉRRA’s commitment to obtaining a return on capital will improve the risk return for other institutional investors in the fund. Notable new investors in CTF include corporate giants such as CDPQ, GIC, Prudential and Temasek. These companies are a key supporter of the fund’s mission and help to strengthen capital accumulation. Brookfield expects to reach the first CTF closing in early 2025, with the first investments scheduled for late 2024. The company’s focus is on the efficient use of these funds to create significant development in the energy sector of emerging economies. Mark Carney, president and head of alternative investments at Brookfield Asset Management, highlighted the importance of new commitments from large institutional investors and praised the CTF’s growth. He emphasized that the support from these international entrepreneurs represents the great business opportunity offered by the transition to clean energy and climate change in emerging markets. Brookfield’s approach to accelerating the transition to clean energy in these critical regions is through strategic partnerships with other like-minded entrepreneurs.