Brookfield Asset Management (TSX:BAM, NYSE:BAM) has raised $2.4 billion for the Catalytic Transition Fund (CTF), a United Arab Emirates-backed fund aimed at mobilizing capital for clean energy and transition projects in emerging markets.
The fund, launched at COP28 with up to $1 billion of capital provided by UAE-based climate fund ALTÉRRA, is targeting raising up to $5 billion.
The Toronto-based firm said on Monday it has received significant commitments from major institutional investors, including CDPQ, GIC, Prudential and Temasek, among others.
“These anchor commitments from CDPQ, GIC, Prudential and Temasek demonstrate significant momentum for the Catalytic Transition Fund,” Brookfield Asset Management (TSX:BAM, NYSE:BAM) head of transition investing Mark Carney said in a statement.
“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.”
The CTF will target investments in South America, Asia, the Middle East, and Eastern Europe, addressing the critical need for increased funding to meet global net-zero goals.
Initial investments are expected to be announced by the end of 2024, with a formal close anticipated in early 2025.