Canada’s Brookfield Asset Management and the UAE’s Alterra Management have launched a $5-billion investment fund that will focus on acquiring clean energy and transition assets in emerging markets.

The investment vehicle, known as the Catalytic Transition Fund, has widespread international commercial real estate implications. Brookfield Asset Management is the real estate investment arm of the global investment giant commonly known as Brookfield.

Alterra and Toronto-based Brookfield will contribute $1 billion and at least 10% of the fund’s total capital, respectively.

The capital raised will be deployed in target emerging markets, including in South and Central America, South and Southeast Asia, the Middle East, and Eastern Europe. Brookfield will manage the fund.

“The Catalytic Transition Fund is a private market solution to the global challenge of delivering transition investment to emerging markets,” said Mark Carney, Brookfield’s chair and head of global energy transition investing.

“Brookfield is already a leading transition investor in these regions and has first-hand knowledge of the incredible opportunity and impact that is available in these chronically underfunded markets. Having this dedicated capital for emerging markets will complement our existing Brookfield Global Transition Fund strategy and further accelerate the growth of clean energy and transition investments in the future.”

The BGTF strategy involves creating and deploying investment funds that help accelerate the global transition to clean energy sources. The second fund in the BGTF series, known as BGTF II, generated $10 billion on first close in February.

BGTF I raised a record $15 billion in 2022.

Alterra operates the world’s largest private investment vehicle for clean finance. The company was created at COP28, the United Nations’ climate change conference, in January 2024 through a $30-billion investment from the UAE.

Alterra is committed to deploying $30 billion in climate-related investments while seeking to catalyze $250 billion with partners by 2030.