Brookfield’s Ambitious Energy Transition Fund Raises $10 Billion

Brookfield Asset Management (NYSE:BAM) announced on Monday that it has successfully raised a staggering $10 billion for its newest energy transition fund. The company further stated its plans to continue fundraising, with hopes of surpassing the $25 billion mark for two new private funds dedicated to investments in clean energy.

The firm’s initial energy transition fund, launched a few years ago, had secured a substantial $15 billion. This fund had made notable investments in U.S. renewable developers, carbon capture startups, and had also finalized a deal to acquire nuclear power services provider Westinghouse Electric. Brookfield (BAM) confidently declared that the new fund is set to outstrip the size of its predecessor.

“The demand, particularly from corporates for green power, is simply overwhelming,” noted Connor Teskey, the head of Brookfield’s (BAM) renewable power and transition business, in an interview with The Wall Street Journal.

This extraordinary cash influx provides Brookfield (BAM) with unparalleled capability for climate projects, placing it in a league shared by only the largest investment firms and energy producers such as BlackRock and NextEra Energy. This also serves as a testament to investor confidence in the sector, despite the myriad challenges in permitting, construction, and costs faced by numerous clean energy developers, as reported by the WSJ.

Brookfield’s (BAM) energy transition funds are jointly led by Teskey and Mark Carney, the former head of central banks in the U.K. and Canada, who currently serves as the key figure on climate finance for the United Nations.