11:26 AM EDT, 07/28/2021 (MT Newswires) -- Tudor, Pickering & Holt on Wednesday reiterated its buy rating on the shares of Brookfield Asset Management (BAM-A.TO) with a US$44.00 target prices as the company closed the initial round of investment in its Global Transition Fund with support from the Ontario Teachers' Pension Plan Board and Temasek.
"BEP modestly outperformed yesterday (+2.9% vs ICLN) after Brookfield Asset Management announced an initial $7.0B closing for the Brookfield Global Transition Fund (Fund) with a focus on renewable power development, scaling clean energy, and investing to catalyze transformation of carbon-intensive businesses," the investment bank wrote. "The founding partners, OTPP and Temasek, have made significant commitments to invest alongside Brookfield in the Fund aligning with internal targets of achieving net-zero carbon emissions by 2050 or sooner, with a pair of additional investors also committed to being meaningful initial investors. The Fund will be co-led by BAM and BEP with a hard cap of $12.5B, and is expected to receive capital over the balance of 2021. BEP may still make certain direct investments, such as the TerraForm privatization, but the majority will likely be alongside BAM and its affiliates in the private funds. We suspect investors will be keenly focused during Q2 on the timing, type, and size of new opportunities the Fund is targeting while addressing the sustainability of mid-teens equity returns amidst increased competition and supply constraints."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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