Sign in
Brookfield closes initial funding round for CTF: Canada’s Brookfield Asset Management has initially closed a USD 2.4 bn funding round for the UAE-backed Catalytic Transition Fund (CTF) to boost climate finance in emerging markets, according to a press release (pdf). The Catalytic Transition Fund (CTF) is anchored by a USD 1 bn commitment from Alterra fund set up by the UAE during COP28.
Where is the money coming from? The new investment partners are Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek, among others.
What’s next? CTF expects to share its initial investments later in 2024, the statement notes. Additional capital from ongoing fundraising efforts and a traditional close is expected by early 2025, Brookfield says.
An ambitious goal: Back in June, Brookfield said it aims to raise USD 5 bn as part of its first close which was expected by the end of 2024 at the time. Brookfield will contribute at least 10% of the capital.
What they said: “Globally, around USD 6.5 tn will be needed yearly for the energy transition over the next 15 years. It’s a staggering figure, and various partnerships and investments are necessary to accelerate the path forward,” CDPQ Global Vice-President and Head Marc-André Blanchard said in the statement.
About Alterra: The UAE-backed USD 30 bn vehicle was launched last year at COP28 to mobilize USD 250 bn globally by 2030 to finance the new climate economy and accelerate the climate transition, the statement notes. Alterra’s initial commitment — along with BlackRock, Brookfield, and TPG — was USD 6.5 bn to climate-dedicated funds. Alterra recently said it will direct an extra USD 200 bn to investments over the next six years, after saying it aims to mobilize USD 250 bn in green investments by 2030.
OTHER ALTERRA-RELATED NEWS-
Private equity firm TPG raised an initial USD 1.25 bn for its private investment vehicle for climate action, the Global South Initiative, with commitments from Alterra, according to a separate statement (pdf), which did not disclose Alterra’s exact contribution. Investors from Asia and North America also contributed to the funding, the statement said. Alterra made the contribution through its USD 5 bn fund.
Background: TPG and Alterra launched GSI at COP28 in Dubai, targeting USD 2.5 bn in total capital.
