Global alternative asset manager Brookfield has been selected by the UK Nuclear Liabilities Fund (NLF) to manage a long-term, multi-asset investment portfolio, commencing with an initial $1 billion allocation.
The mandate will be executed by Brookfield’s Investment Solutions Group (ISG), chaired by Oaktree Co-Chairman Howard Marks and led by Alper Daglioglu. ISG will construct a customized portfolio aligned with NLF’s multi-decade liabilities associated with the future decommissioning of eight nuclear power stations across the United Kingdom.
The portfolio will allocate capital globally across Brookfield’s primary business lines, including infrastructure, clean energy, private equity, real estate, and private credit strategies. Investments will be deployed through a combination of direct investments, fund commitments, and co-investments.
Key structural and strategic aspects of the partnership include:
- Long-Term Capital Compounding: Designed to match the extended timeline of nuclear decommissioning obligations, the mandate prioritises long-term capital growth, allowing investment returns to compound over multiple market cycles.
- Capital Reinvestment Strategy: Proceeding distributions will be systematically reinvested into new market opportunities rather than routinely paid out, limiting the long-term burden on UK taxpayers for future decommissioning expenditures.
- Customised Portfolio Construction: ISG will draw on Brookfield’s global network to adjust asset allocations dynamically as market conditions and NLF’s liability profiles evolve.
Alper Daglioglu, Head of Brookfield’s Investment Solutions Group, stated: “NLF has an exceptionally long investment horizon, and that creates an opportunity to invest differently. Our partnership is built on a shared belief in long-term thinking, disciplined capital allocation and the power of compounding over decades. We will draw on the breadth of Brookfield capabilities to customize a portfolio around NLF’s specific objectives and continue to evolve that portfolio as opportunities and needs change over time. We are honored by the trust NLF has placed in us and recognize the responsibility that comes with this mandate.”
Melissa Hope, Chief Executive Officer of the Nuclear Liabilities Fund, added: “Our mandate is to ensure that sufficient assets are available to meet the future costs of decommissioning eight of the UK’s nuclear power stations. Following a competitive selection process, Brookfield stood out for its depth of global investment capability, long-term perspective and disciplined approach to portfolio construction and governance. This partnership is designed to support our obligations over a multi-decade horizon and Brookfield’s breadth of capabilities, long-term investment approach and experience investing through multiple market cycles make them a natural partner for this important mandate.”
