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Brookfield’s transition fund targets 10% returns

A New Jersey pension allocated $600m to the investment strategy.

Details about the Brookfield Global Transition Fund, including a stated target for 10 percent net returns, were made public this week during a New Jersey State Investment Council meeting.

The investment committee for the $98.7 billion New Jersey pension allocated $300 million to the sustainable infrastructure-focused vehicle, along with an additional $300 million to a co-investment sidecar. In July, Brookfield announced it had raised $7 billion for the energy transition fund, including a $2 billion GP commitment. The vehicle has a hard-cap of $12.5 billion.

According to the NJSIC presentation, Brookfield’s fund is targeting a 10 percent net return, 13 percent gross returns, and is offering a 12-year fund commitment term with the option of two one-year extensions.

The fundraise launched in February and aims to deploy capital into assets that “catalyse the transformation of carbon-intensive businesses” and “accelerate the global transition to a net-zero carbon economy”, a statement from the firm said.

The investment strategy is co-led by Mark Carney, Brookfield’s head of transition investing, and Connor Teskey, chief executive of Brookfield’s renewables strategy, which has already deployed billions of dollars into solar, wind and other forms of clean energy and efficiency technologies.