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TLDR:
Key Points:
- Brookfield Asset Management and ALTÉRRA have launched a $5 billion Catalytic Transition Fund to invest in clean energy and transition assets in underserved emerging economies
- The fund aims to mobilize up to $5 billion in total capital, with a $1 billion anchor commitment from ALTÉRRA
Brookfield Asset Management and ALTÉRRA have announced the launch of a $5 billion Catalytic Transition Fund, aimed at directing investments towards clean energy and transition assets in underserved emerging economies. The fund, managed by Brookfield, has received a $1 billion anchor commitment from ALTÉRRA, with a target to mobilize up to $5 billion in total capital. The fund was unveiled at the COP28 climate conference in Dubai in December 2023, alongside the launch of ALTÉRRA by the UAE government. ALTÉRRA, with a $30 billion commitment from the UAE, aims to drive $250 billion in private capital towards climate investments by 2030, focusing on improving access to climate finance in emerging markets, particularly in the Global South. The fund offers potential for greater emissions reductions per dollar invested than in developed markets, with a focus on regions like South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. ALTÉRRA is offering a capped return on its commitment to the fund to improve risk-adjusted returns for investors. A first close for the new fund is expected by the end of 2024.
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