Brookfield Asset Management is aiming to hit a USD 5bn final close for the Catalytic Transition Fund in 3Q26, according to two sources familiar.

One of the sources said a final close is slated for October. The timeline remains subject to market conditions, the sources said.

The emerging markets fund has raised roughly USD 4bn-USD 4.2bn in limited partner commitments so far, according to the other source.

The Catalytic Transition Fund hit an initial close of USD 2.4bn in September 2024, with backing from La Caisse, GIC, Prudential and Temasek. It has since secured USD 100m from IFC, alongside an additional USD 75m co-investment sleeve.

Launched at COP28 in 2023, the fund was anchored with USD 1bn from United Arab Emirates climate investor ALTÉRRA. Brookfield has also committed to provide 10% of the fund target.

The Catalytic Transition Fund last year began deploying capital with three deals announced in Southeast Asia, where it intends to create a decarbonisation platform.

It bought a controlling interest in Alba Renewables, a Singapore-headquartered renewables platform with assets in the Philippines and Thailand, plus a 100 MW operational wind farm in Vietnam. In Malaysia, it partnered with domestic services provider Solarvest to develop a 1.5 GW solar-plus-battery portfolio.

Up to 45% of the fund capital is earmarked for South and Southeast Asia; the same share will go toward Central and South America, a source previously said. Eastern Europe and the Middle East will account for the remainder.

The fund will invest in decarbonisation, distributed energy systems and batteries as well as energy efficiency, advanced waste management and next‑generation aviation fuels, according to IFC.

Equity cheques will range from USD 200m to USD 500m. The fund targets high-teens returns, per the previous source.

Brookfield declined to comment.