UAE-backed climate fund Alterra has poured USD 2 bn into Canada’s Brookfield Asset Management’s USD 20 bn energy transition fund, Brookfield Global Transition Fund II (BGTF II) — the biggest private fund of its kind globally, according to a press release.

The fund will invest in energy transition assets, backing longer-term technologies such as nuclear energy and carbon capture storage, the Financial Times reports.

Who else pitched in? The fund closed with support from both existing and new investors. Brookfield Corporation, the group’s parent company, contributed about a quarter of the total capital, a source told the FT, while Norway’s sovereign wealth fund Norges Bank Investment Management added USD 1.5 bn. Singapore’s Temasek Holdings contributed USD 3.5 bn in co-investments, bringing total capital raised across its clean energy portfolio to about USD 23.5 bn. Brookfield’s first energy transition fund raised USD 15 bn.

Where the money’s flowing: More than USD 5 bn has already been deployed. Investments include Brookfield’s USD 6.6 bn acquisition of French renewables developer Neoen, the takeover of US energy firm Geronimo Power, and a major stake in Evren, a joint venture in India between Brookfield and Axis Energy Ventures focused on wind, solar, and storage projects, according to a press release.

Alterra and Brookfield go way back: The UAE fund committed USD 100 mn in Evren earlier this year and another USD 100 mn to back Neoen. Alterra previously committed up to USD 1 bn to Brookfield’s USD 2.4 bn Catalytic Transition Fund in September 2024.

ICYMI- Alterra had been reportedly struggling deploy capital amid a shortage of viable clean energy projects. But that’s changing — it also committed EUR 50 mn this year to Italy’s Absolute Energy through its Alterra Acceleration Fund. The fund, unveiled during COP28, is set to mobilize USD 250 bn in green investments by 2030.

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