In brief: Brookfield ‘under way’ with first close for Global Transition Fund II

Brookfield is expecting ‘strong re-ups’ and new LPs for BGTF II, which the firm expects will be larger than its $15bn first impact fund.

A first close is “under way” for Brookfield Asset Management’s second Global Transition Fund, the firm’s chief financial officer Bahir Manios has said. The firm expects BGTF II to be “larger than” its $15 billion debut for this strategy. Brookfield has not announced a target for BGTF II, but Bloomberg previously reported that it is seeking $20 billion.

“Our fundraising for [BGTF II] is off to a strong start,” Manios said on the firm’s Q2 2023 results call last week. Although he noted that the firm is at an early stage of fundraising, it “expect[s] strong re-ups” from LPs of the BGTF I. Brookfield also expects to recruit new LPs “as investing in the energy transition is now much more accepted in the market. We’re also benefiting from the successful deployment track record of our first fund”.

Chief executive Bruce Flatt confirmed in May that the firm had launched BGTF II, and Brookfield registered the fund with the SEC in July. It is a growth equity and infrastructure strategy focused on emissions reduction and emissions avoidance globally.