IFC Invests $100 Million In Brookfield’s New $5 Billion Catalytic Transition Fund, With $75 Million More Approved To Boost Clean Energy In Emerging Markets

Responding to growing client demand for dependable energy access and sustainable investment opportunities in emerging markets, the International Finance Corporation (IFC), a member of the World Bank Group, has committed to supporting a new fund managed by Brookfield Asset Management, which targets a total size of $5 billion. The fund is designed to direct capital into regions where it is most needed, helping accelerate the development of energy infrastructure and sustainable solutions across Asia, Latin America, Eastern Europe, and the Middle East. By doing so, it aims to spur economic growth, strengthen community resilience, and create new employment opportunities.

IFC will invest $100 million in Brookfield’s Catalytic Transition Fund LP and has approved an additional co-investment envelope of up to $75 million for participation in future transactions alongside the fund. The initiative is anchored by a $1 billion commitment from the climate-focused investor ALTÉRRA through its Transformation Fund. The fund will focus on three core investment themes: business transformation, energy, and sustainable solutions.

Investments under the business transformation category will support companies in decarbonizing operations and shifting toward more sustainable business models. Energy sector investments will expand scalable power technologies, including distributed energy systems and battery storage. Meanwhile, sustainable solutions will target opportunities related to energy efficiency, advanced waste management, and next-generation aviation fuels.

Mohamed Gouled, IFC’s Vice President of Industries, emphasized that the initiative will expand energy access, scale sustainable technologies, and drive resilient economic development. He noted that by proving the commercial viability of such investments, the fund could encourage greater global investor participation in emerging markets. The need is significant—developing countries require annual investments in electricity generation, grids, and storage to rise from the current $280 billion to around $630 billion by 2035. Despite this demand, emerging markets attract only a small share of global private investment, with just 8 percent of global private equity fundraising flowing into these regions in 2023.

Connor Teskey, President of Brookfield Asset Management, highlighted that IFC’s participation will accelerate Brookfield’s ability to deploy large-scale capital toward projects that support economic growth, energy security, and decarbonization across emerging markets. He added that IFC’s global expertise, combined with Brookfield’s longstanding experience in renewable energy and transition-focused investments, will help deliver meaningful impact for communities, investors, and the broader clean energy transition.

IFC’s broader funds strategy is centered on strengthening private equity ecosystems that can nurture high-impact businesses in developing economies. By directing scarce capital through fund managers into emerging markets, IFC supports the creation and expansion of dynamic, job-creating enterprises that drive sustainable development, foster innovation, and deliver essential goods and services.