Brookfield raises $2.4 billion for Catalytic Transition Fund with support from ALTÉRRA’s Anchor Commitment

Additional capital obtained, among others, from CDPQ, GIC, Prudential and Temasek

Target: up to $5 billion, based on ALTÉRRA’s $1 billion catalytic capital investment

BROOKFIELD, NEWS, Sept. 23, 2024 (GLOBE NEWSWIRE) — Brookfield Asset Management (NYSE: BAM, TSX: BAM) (“Brookfield”) today announced the preliminary close of $2.4 billion for the Catalytic Transition Fund (“CTF”). ” or the “Fund”), which represents an important milestone in our goal to raise up to $5 billion to deploy clean energy and transition assets in emerging markets.

The CTF was previously launched at COP28 with up to $1 billion in catalytic capital provided by ALTÉRRA Funds (“ALTÉRRA”), the world’s largest private climate finance investment vehicle headquartered in the United Arab Emirates, which aims to mobilize investment on a large scale to finance the new climate economy. Using innovative approaches to catalyze capital for climate solutions in emerging markets, the ALTÉRRA Fund’s exposure is designed to deliver capped returns, thereby improving risk-adjusted returns for the Fund’s other investors. Brookfield has committed to committing 10% of the Fund’s target to align with investment partners and investors.

Today, Brookfield announces four additional investment partners for CTF: CDPQ, GIC, Prudential and Temasek, among others. These leading institutional investors are important global players in transition investing and will be valued partners of Brookfield as CTF is implemented in its target markets. CTF has now raised about half of the $5 billion in total capital committed to the fund.

CTF focuses on deploying capital in clean energy and transition assets in emerging markets in South and Central America, South and Southeast Asia, the Middle East and Eastern Europe. This strategic partnership will help drive clean energy investment to emerging markets, where investment must increase sixfold from current levels to reach the required $1.6 trillion per year in the early 2030s, in line with global net-zero emissions goals. The fund benefits from ALTERRA’s efforts to significantly expand private financing and drive ambitious new climate strategies, as well as Brookfield’s global leadership in clean energy and transition investing, drawing on more than three decades of operational experience in renewable energy technologies and its experience as a global leader and the largest transition investor among alternative asset managers.

The fund expects to announce its seed investments later in 2024, with a traditional first close – with additional capital from Brookfield’s ongoing fundraising efforts through its extensive network of institutional investors – expected in early 2025.

HE Majid Al-Suwaidi, CEO of ALTÉRRA, said:

“The CTF showcases ALTÉRRA Catalytic Capital as a powerful climate finance multiplier for countries in the Global South. This early momentum around CTFs demonstrates strong global demand not only for climate strategies, but also for opportunities to invest in climate solutions in emerging markets. ALTÉRRA is looking forward to the collaboration CDPQ, GIC, Prudential and Temasek and other partners who share our ambition to redefine how the world invests in climate solutions and go beyond business as usual to make a positive impact on both people and the planet.”

Mark Carney, president and chief transition investment officer at Brookfield Asset Management, said:

“These major commitments from CDPQ, GIC, Prudential and Temasek demonstrate significant momentum for the Catalytic Transition Fund. The support of the CTF strategy from the world’s most sophisticated investors underscores its unique combination of mainstream commercial opportunities and climate imperatives. We look forward to working with other like-minded investment partners to accelerate transformation in these key and very underserved markets.

Marc-André Blanchard, Executive Vice President and Director of CDPQ Global and Global Chief Sustainability Officer, said:

“Globally, around $6.5 trillion per year will be needed for the energy transition over the next 15 years. This is an astonishing number, and various partnerships and investments are needed to accelerate this journey. For CDPQ, the energy transformation is the key to creating lasting value. By investing in Brookfield’s Catalytic Transition Fund, we support innovative approaches to mobilizing capital for climate solutions in emerging markets where investment is critical to addressing global environmental challenges.

Don Guo, chief investment officer at Prudential plc, said:

“We believe there is an opportunity to drive scalable positive change in emerging markets by investing in the climate transition. Prudential’s investment in Brookfield’s Catalytic Transition Fund underscores our belief that responsible investing is not only an environmental imperative, but also a significant growth opportunity in emerging markets. By supporting a just and inclusive transition, we enable the benefits of sustainable development to be widely shared, contributing to social equality and long-term prosperity.

About Brookfield Asset Management

Brookfield Asset Management (NYSE: BAM, TSX: BAM) is the world’s leading alternative asset manager, with approximately $1 trillion in assets under management. We invest client capital for the long term, focusing on real assets and key service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world – including public and private pension plans, endowments and endowments, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates one of the world’s largest renewable energy and sustainable solutions platforms. Our renewable energy portfolio includes hydro, wind, solar and utility-scale storage facilities in North America, South America, Europe and Asia and totals approximately 34,000 megawatts of installed capacity and a development pipeline of approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse, a leading global nuclear services company and an independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline for carbon capture and storage efficiency , agricultural renewable natural gas and material recycling.

As a signatory to the Net Zero Asset Managers initiative, Brookfield is committed to supporting the goal of achieving net zero greenhouse gas emissions by 2050 or sooner – in line with the Paris Agreement.

More information can be found on our website www.brookfield.com.

About ALTERRA

ALTÉRRA is the world’s largest private investment vehicle dedicated to climate finance. Launched at COP28 with a $30 billion commitment from the United Arab Emirates, the ALTÉRRA project aims to build innovative partnerships to mobilize $250 billion globally by 2030 to finance the new climate economy and accelerate the climate transition.

ALTERRA’s two-pronged structure enhances its impact: The $25 billion Accelerator Fund directs capital to projects critical to accelerating the global transition to a net-zero and climate-resilient economy at scale. The $5 billion Transformation Fund encourages investment flows in high-growth climate opportunities in underserved markets by providing catalytic capital.

Alterra Management Limited is duly licensed and authorized by the Financial Services Regulatory Authority ADGM under Financial Services License No. 200001.

Brookfield

ALTERRA

Note to readers

This press release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the United States Securities Act of 1933, the United States Securities Exchange Act of 1934, safe harbor under the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities laws (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend on or relate to future results, events or conditions and include, but are not limited to, statements that reflect management’s current estimates, beliefs and assumptions and which, in turn, are based on our experience and perception of trends historical, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Brookfield’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other contingencies relating to future events and, as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “predict”, “could”, “estimate”, “target”, “intend”, “plan”, “seek” , “try,” “will,” “may,” and “should” and similar expressions. In particular, forward-looking statements contained in this press release include statements relating to, among other things, the CTF’s fundraising objective, the expected impact and earnings of the CTF, and the expected timing of the announcement of initial investments and the first closing of the CTF.

Although Brookfield believes that such forward-looking statements are based on reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties that are described from time to time in our filings with the securities regulatory authorities in Canada and the United States, or that are not currently known to Brookfield or that Brookfield currently considers to be immaterial could cause actual results to differ materially from those anticipated or implied by the forward-looking statements.

Readers are encouraged to carefully consider these risks, as well as other uncertainties, factors and assumptions, in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based solely on information available to us as of the date of this release press release. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, whether as a result of new information, future events or otherwise.