Brookfield Asset Management expects to close the Global Transition Fund 2 later this year “at or above” its target after a “tremendous” fundraising quarter, president Connor Teskey said yesterday. The firm has never disclosed a target size for the fund, other than saying it would be at or above the $15 billion raised for Fund 1.

BGTF II has so far raised $10 billion, including securing $1.2 billion in the first quarter of this year, the firm announced in its Q1 2024 results. Among its investors is Altérra, the United Arab Emirates’ $30 billion climate fund, which committed $2 billion – the largest ever LP commitment to a private markets impact fund.

Brookfield’s Catalytic Transition Fund is expected to reach a first close later this year. BCTF was launched last year with a $1 billion anchor investment from Altérra; it is a “vehicle for accelerating investment into decarbonisation solutions in chronically underinvested emerging markets”, according to the results announcement.

“Our confidence in the reception of our transition strategy continues to be immense. We feel very confident in terms of closing up that fund at or above target,” Teskey said on yesterday’s results call.

Brookfield brought BGTF II to market in 2023, before its $15 billion predecessor had had any realisations. The firm has since returned $309 million to LPs from BGTF I, the results show. It is generating a net IRR of 9 percent.

“This was the best Q1 fundraising quarter we’ve ever had” for all of Brookfield’s strategies collectively, said Teskey. Fundraising in 2023 was “back-end loaded”, he added – with the most capital raised in Q4. “We don’t see as much of that dynamic this year. We do expect fundraising to be more balanced across the four quarters. Obviously it will accelerate a little bit towards the back end of year, but we don’t expect such a concentration in Q4 as we saw in 2023.”

Editor’s note: This article has been updated to reflect the fact that a first close – rather than a final close – is anticipate this year for the Catalytic Transition Fund.