Brookfield Asset Management Ltd. is eyeing billion-dollar deals in the renewable energy sector following a drop in valuations in recent years. Earlier this year, the asset manager raised $10 billion for an energy transition fund and an additional $2.4 billion for a similar fund targeting emerging markets. The firm is now seeking investment opportunities in the range of $1 billion in equity, according to Natalie Adomait, managing partner in Brookfield’s renewable power and transition group.
Adomait, at the BNEF Summit in London, highlighted potential acquisitions of renewable energy developers or large utilities globally, in an interview with Bloomberg. This follows Brookfield’s recent purchase of a majority stake in Neoen SA, positioning the firm closer to a €6.1 billion ($6.7 billion) takeover of the French renewable energy developer. Declines in the valuations of publicly-traded renewable power companies, due to higher interest rates and supply chain challenges, have created attractive buying opportunities.
“Did that create a buying opportunity? Yes, absolutely,” said Adomait. “We were able to see underlying value on the ground hadn’t changed. Fundamentals were steady, demand still strong.”
Adomait also pointed to India as one of the most promising markets for renewable energy investment, where the government is lagging on its green energy targets. Brookfield plans to increase its renewables assets in India from the current $3 billion to $10 billion.
“That market is booming and the government has really unlocked investment opportunities for international investors,” she said.