“It’s definitely a tricky part of the process for one of these managers,” he said.
Some managers have tried to solve the problem by hiring teams specializing in renewable energy or by showing potential investors the transactions they have made in recent years, he said.
New Jersey State Investment Council staff noted Brookfield Asset Management’s investment track record in renewable energy in a November 10, 2021 staff report on the Brookfield Global Transition Fund, which closed in June with $15 billion. The board, which oversees New Jersey’s $91.5 billion pension fund, Trenton, has committed $300 million each to the fund and a co-investment sidecar vehicle. The Brookfield fund is expected to invest in real asset sectors including renewable energy, utilities and industrials. At the time, Brookfield had $57 billion in renewable assets under management.
“While there are many renewable energy asset managers around the world, Brookfield was one of the first and is now one of the largest,” the staff report said.
The Brookfield Infrastructure Fund Series has made 14 renewable energy investments that “produced strong returns with limited losses,” according to the report.
BlackRock Inc. launched its energy infrastructure business by hiring a team, giving the company the strategy expertise and track record.
The team behind BlackRock’s new infrastructure fund and its predecessors, traditional energy funds, joined the firm in 2017 through BlackRock’s acquisition of First Reserve’s energy infrastructure business. At the time, the team had announced or closed 21 energy infrastructure investments since 2010, almost all of which were negotiated on an exclusive basis.
Mark B. Florian, managing director and head of BlackRock’s global infrastructure funds business, had led First Reserve’s energy infrastructure team, putting him in charge of the business for 14 years. . Prior to that, he had a 23-year career at Goldman Sachs where he served on the investment committee for the infrastructure business.