(Bloomberg) — Brookfield Asset Management Ltd. sees an opportunity to ink billion-dollar deals in the renewable-power industry after valuations dropped in recent years.
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The asset manager said earlier this year that it raised $10 billion for a fund dedicated to investing in the energy transition as well as $2.4 billion for a similar fund focused on emerging markets. It’s now looking for investments of around $1 billion of equity, according to Natalie Adomait, managing partner in Brookfield’s renewable power and transition group.
The company sees opportunities around the world “to acquire renewable developers or maybe a big utility,” Adomait said in an interview on the sidelines of the BNEF Summit in London on Tuesday.
Any deal would follow the firm’s purchase this year of a majority stake in Neoen SA that moved it closer to a €6.1 billion ($6.7 billion) takeover of the French renewable developer. That came after troubles in the offshore wind industry — including higher interest rates and supply chain snarls — cut valuations of publicly-traded renewable power companies.
“Did that create a buying opportunity? Yes, absolutely,” Adomait said. “We were able to see underlying value on the ground hadn’t changed. Fundamentals were steady, demand still strong.”
She said one of the most exciting markets for renewables investment is India, where the government is far behind on delivering on targets for green power. The firm aims to have $10 billion of renewables assets under management in the country, up from around $3 billion currently.
“That market is booming and the government has really unlocked investment opportunities for international investors,” she said.
Mark Carney, chair of Brookfield Asset Management, is also chair of Bloomberg Inc.
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