01—Abstract
Summary
Summary of the 6-K filed June 13, 2024. Cited figures are marked; the original filing is the authoritative source.
Brookfield Asset Management (NYSE/TSX: BAM) furnished a Form 6-K on June 13, 2024, attaching a press release announcing the opening of fundraising for its Catalytic Transition Fund (CTF).
The fund is targeted to raise up to $5 billiona for clean energy and transition investments in emerging markets, anchored by a $1 billion commitment from ALTÉRRA, the UAE-backed climate finance vehicle. The filing is a disclosure of a new fund launch rather than a financial results report, so it contains no revenue, earnings, or balance sheet data. For investors, the key points are the scale of the target, the anchor commitment, and Brookfield's own participation.
Brookfield states it will contribute at least 10%b of the fund's total capital, which it says aligns its interests with investment partners. ALTÉRRA is offering a capped return on its commitment, which the company says improves risk-adjusted returns for other fund investors. A first close is expected by the end of 2024.
The fund follows a December 2023 announcement, and Brookfield says it has built an advanced investment pipeline and begun pre-marketing. The release also points to Brookfield's transition franchise. The first Brookfield Global Transition Fund (BGTF I) raised a record $15 billionc in 2022, and BGTF II announced a $10 billion first close in February 2024 and is expected to exceed its predecessor.
The release cites over $925 billiond in assets under management. Investors should note that the fund's size is a target, not a committed amount beyond the $1 billion ALTÉRRA commitment, and that the release contains forward-looking statements subject to risks described in Brookfield's other filings.
02—Key points
Key Highlights
- Brookfield launched fundraising for the Catalytic Transition Fund (CTF), its first dedicated transition fund for emerging markets, with a target of up to $5 billion.
- UAE-backed ALTÉRRA has committed $1 billion as anchor investor, and ALTÉRRA is offering a capped return on that commitment to improve risk-adjusted returns for other investors.
- Brookfield will contribute at least 10% of CTF's total capital to align its interests with investment partners.
- CTF targets deployment in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe.
- A first close is expected by the end of 2024, following a December 2023 launch announcement and pre-marketing activity.
- The release highlights Brookfield's transition track record: BGTF I raised a record $15 billion in 2022, and BGTF II announced a $10 billion first close in February 2024.
- Brookfield cites over $925 billion in assets under management, supporting its position as a large alternative asset manager. The filing is a Form 6-K (foreign private issuer), not an 8-K, and reports no financial results.
03—Questions
Frequently Asked Questions
What is the Catalytic Transition Fund and how big is it?
The CTF is a Brookfield-managed fund investing in clean energy and transition assets in emerging economies. It is targeting up to $5 billion in total capital, anchored by a $1 billion commitment from ALTÉRRA. The $5 billion figure is a fundraising target, not a closed amount.
Is Brookfield investing its own money in the fund?
Yes. Brookfield states it will contribute at least 10% of the fund's total capital, which it says ensures its interests align with those of investment partners.
What is ALTÉRRA's role and what is unusual about its commitment?
ALTÉRRA, a climate finance vehicle launched at COP28 with a $30 billion UAE commitment, is the anchor investor with $1 billion. It is offering a capped return on its CTF commitment, which Brookfield says improves risk-adjusted returns for other investors. The release does not disclose the cap level.
When will the CTF begin closing capital, and what are the risks?
A first close is expected by the end of 2024. The release contains forward-looking statements about the fund's deployment, expected returns, and first close timing. These are subject to business, economic, and competitive risks described in Brookfield's other SEC and Canadian securities filings, and the timing or size of the fund could differ from expectations.
How does CTF relate to Brookfield's existing transition funds?
CTF is designed to complement the Brookfield Global Transition Fund series, which is focused on developed and broader markets. BGTF I raised a record $15 billion in 2022, and BGTF II announced a $10 billion first close in February 2024 and is on track to exceed its predecessor. CTF is Brookfield's first transition fund dedicated specifically to emerging markets.
04—Continue