Brookfield Asset Management launches Catalytic Transition Fund

At COP28, Brookfield Asset Management and ALTERRA announced the creation of a multi-billion dollar Catalytic Transition Fund with commitments from ALTERRA Transformation. ALTERRA also committed to investing $2 billion from ALTERRA Acceleration into the second Brookfield Global Transition Fund, Brookfield’s flagship fund focused on the energy transition. CTF will have a differentiated and focused mandate, raising and then deploying capital exclusively for emerging and developing markets, with a dedicated focus on supporting the four key pillars that underpin COP28’s Action Agenda, namely: Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies. The Fund will be managed by Brookfield and will receive up to $1 billion in catalytic capital from ALTERRA Transformation, to enhance the risk-adjusted returns available to commercially-oriented investors. Brookfield is concurrently pursuing opportunities to add further catalytic capital from strategic partners. CTF will focus on decarbonization initiatives, with an innovative structure that leverages ALTERRA’s financial commitment to attract private sector investment at scale. Through this unique approach, the Fund will mobilize climate finance for markets that are critical to achieving Net-Zero, but which have to date been chronically underinvested. The Fund will focus its catalytic investments in South and Southeast Asia, Asia-Pacific, Central Asia, Eastern Europe, Latin America, and the Middle East. Other investors including CDPQ, a global investment group based in Quebec, Canada, and Temasek, a Singapore headquartered global investment firm, have also expressed interest in contributing commercial capital to the Fund, subject to their customary approval requirements. The potential participation of these institutions offers the opportunity to share expertise and market knowledge to benefit the Fund’s investments. In line with its typical approach of aligning interests with its investment partners, Brookfield will commit at least 10% of CTF’s capital.