Brookfield Asset Management and Alterra Management Limited have launched the Catalytic Transition Fund, focused on directing capital into clean energy and transition assets in emerging economies.
Brookfield will manage the CTF, which will harness a $1 billion anchor commitment from ALTÉRRA, to catalyse up to $5 billion in total capital for deployment into emerging markets, it was shared.
The CTF was launched in December 2023. Since then, Brookfield noted that it has been focused on developing the investment strategy, identifying an advanced pipeline of potential investments and pre-marketing to potential investment partners. ALTÉRRA was also launched in December at COP28, with a $30 billion commitment from the UAE in climate investments with the goal to catalyse $250 billion with partners by 2030.
ALTÉRRA is offering a capped return on its CTF commitment to improve the risk-adjusted returns for investors in the Fund.
For CTF, the capital raised will be deployed in target emerging markets, including in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
At least 10 per cent of the Fund’s total capital will be contributed by Brookfield.
A first close for CTF is expected by the end of 2024.
Mark Carney, Chair and Head of Transition Investing at Brookfield Asset Management, commented: “The Catalytic Transition Fund is a private market solution to the global challenge of delivering transition investment to emerging markets. Brookfield is already a leading transition investor in these regions and has first-hand knowledge of the incredible opportunity and impact that is available in these chronically underfunded markets.
“Having this dedicated capital for emerging markets will complement our existing Brookfield Global Transition Fund strategy and further accelerate the growth of clean energy and transition investments in the future.”
H.E Majid Al-Suwaidi, CEO of ALTÉRRA, said that while progress on climate change is being made, the world must “pick up the pace” and “scale significantly” to meet collective climate goals.
“ALTÉRRA wants to challenge the status quo of how we invest in climate solutions, and our investment in the Catalytic Transition Fund reflects our ongoing commitment to go beyond business-as-usual. We are passionate about ensuring capital goes where it is needed and that it drives impact for countries, communities and business. Our catalytic capital will be deployed to supercharge investment in emerging markets – wherever we see great potential for delivering meaningful climate impact and positive economic return,” added HE Al-Suwaidi.