Brookfield is in talks to raise a continuation vehicle to roll over its renewable energy investments in mainland China, according to two sources familiar.

The target fund size is USD 2bn-equivalent, the sources said.

The Canadian manager aims to secure capital from new, Chinese limited partners (LP) and has received interest from the country’s largest state-backed insurers, the sources said.

China Life Insurance is among the group of potential LPs in the new vehicle, said the sources.

The continuation fund will be renminbi-denominated, offering the manager and its existing LPs an opportunity to swap their holdings to local currency, they added.

Some existing LPs are likely to commit to the vehicle, said one of the sources.

The fund will hold around 3 GW in total renewables capacity, the other source said. The portfolio comprises operational wind and solar assets across various provinces, both sources said.

Brookfield is invested in China’s renewables sector through its global funds, according to one of the sources.

A continuation vehicle is used as a liquidity solution for managers to return capital to their LPs, offering an alternative exit route from the more traditional avenues of M&A or public listings.

In Greater China, Brookfield owns 2.2 GW across 31 operational wind projects, a 100 MW construction-stage wind farm, a 585 MW solar development platform, two operational solar projects totalling 128 MW, and a 100 MW construction-stage solar farm.

Headquartered in Toronto, Brookfield has USD 23bn in assets under management across real estate, infrastructure, renewable power and transition, private equity and credit in Greater China.

Brookfield declined to comment while China Life Insurance did not respond to a request for comment.

[Editor’s note: This article has been updated post-publication to note that Brookfield declined to comment.]