• $2.4 billion raised for the Catalytic Transition Fund, targeting a $5 billion total, with a $1 billion anchor from ALTÉRRA.
• Emerging markets focus: Clean energy and transition investments in South America, Asia, the Middle East, and Eastern Europe.
• Major institutional backing: Partners include CDPQ, GIC, Prudential, and Temasek, accelerating climate investments.

Brookfield Asset Management has secured $2.4 billion in the initial closing of the Catalytic Transition Fund (CTF), moving closer to its goal of raising $5 billion. The fund is aimed at clean energy and transition investments across emerging markets, focusing on regions like South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.

The fund is anchored by ALTÉRRA, which provided $1 billion in catalytic capital. This commitment is designed to boost returns for other investors by improving risk-adjusted returns, setting a new standard for climate finance in emerging markets. According to H.E Majid Al-Suwaidi, CEO of ALTÉRRA, “CTF demonstrates ALTÉRRA’s catalytic capital as a powerful multiplier of climate finance to the Global South.”

Brookfield is backed by four key institutional partners: CDPQ, GIC, Prudential, and Temasek. These partnerships will drive significant investment toward underserved markets. Mark Carney, Chair of Brookfield Asset Management, said, “The support from the world’s most sophisticated investors for the CTF strategy underscores the unique combination of the major commercial opportunity and the climate imperative.“

Aiming for Impact

Clean energy investment in emerging markets needs to increase sixfold by the early 2030s to meet global net-zero targets. Marc-André Blanchard, Executive Vice-President of CDPQ, highlighted, “Around $6.5 trillion will be needed yearly for the energy transition over the next 15 years. For CDPQ, the energy transition is key to creating lasting value.“

The CTF is expected to make its initial investments later in 2024, with a formal close and additional capital expected by early 2025. This move aligns with Brookfield’s three-decade track record in clean energy and its position as the world’s largest transition investor among alternative asset managers.

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Don Guo, Chief Investment Officer of Prudential, added, “We believe there is an opportunity to drive scalable positive change in emerging markets through investing in the climate transition… supporting a just and inclusive transition.”

Brookfield and its partners are positioning the CTF as a key player in accelerating clean energy adoption in critical markets.