Blended arrangement will supplement $1 billion committed by Alterra, with a $5 billion target for the fund aimed at catalyzing EM sustainability.
The International Finance Corporation (IFC) announced it will invest $100 million into the Catalytic Transition Fund, a vehicle managed by Brookfield Asset Management, targeting a total of USD 5 billion, focused on emerging-markets energy infrastructure and sustainable solutions.
IFC will bring in an additional envelope of up to $75 million to co-invest alongside the fund in future deals. The fund will invest across three key themes: business transformation (helping firms decarbonize), energy (including distributed systems and battery storage), and sustainable solutions (such as energy efficiency, advanced waste management and next-gen aviation fuels). Deployment will span much of the full EM spectrum, funding equity plays across Asia, Latin America, Eastern Europe and the Middle East.
“The project will help expand access to energy and scale sustainable technologies, powering businesses and communities and driving resilient economic growth,” said IFC’s Vice President of Industries, Mohamed Gouled. “IFC’s investment in the Fund accelerates our ability to deploy capital at scale into investments that support economic growth, energy security and decarbonization in emerging markets,” added Connor Teskey, President of Brookfield Asset Management.
State of Play: Emerging markets continue to suffer from a financing gap in clean energy and transition-assets. Annual investment in electricity generation, grids and storage in developing countries must rise from about $280 billion today to around $630 billion by 2035. Yet, according to IFC, emerging economies receive only a small share of global private equity fundraising — just 8 % in 2023.
Created following COP28 in Dubai, Brookfield’s CTF had previously raised $2.4 billion toward its $5 billion target by September 2024, anchored by a $1 billion commitment from UAE-based ALTÉRRA Management, structured with caps to improve risk-adjusted returns for other investors.
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