Brookfield Asset Management announced today that it has raised $2.4 billion for its Catalytic Transition Fund (CTF), aimed at driving clean energy investments in underserved emerging economies, only three months after the fund’s official launch in June 2024.

Initially unveiled in December 2023 at the COP28 climate conference in Dubai, with a $1 billion anchor commitment from newly launched UAE-backed climate investment platform ALTÉRRA, CTF aims to deploy capital into clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.

New institutional investors in the fund include CDPQ, GIC, Prudential and Temasek, among others. The fund has a $5 billion target, and Brookfield has committed to provide 10% of the fund’s target to align itself with investment partners and investors. Additionally, ALTÉRRA’s commitment has been designed to receive a capped return, improving risk-adjusted returns for other investors in the Fund.

Brookfield said that it expects to announce a traditional first close for the fund by early 2025, and the fund’s initial investments later in 2024.

Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management, said:

“These anchor commitments from CDPQ, GIC, Prudential and Temasek demonstrate significant momentum for the Catalytic Transition Fund. 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. We look forward to working with other like-minded investment partners to accelerate the transition in these critical and vastly underserved markets.”