Global climate fund managers—led by heavyweights like Brookfield, San Francisco private equity firm TPG, and Singapore sovereign wealth fund Temasek—raised US$47 billion in 2024, up 20 per cent from last year, according to a report from Sightline Climate. At the same time, deal flow shrank 18 per cent. (The Logic)

Talking point: The deal slowdown, combined with large fundraisings like Brookfield’s US$10-billion close of its Global Transition Fund, have added to the sector’s growing cash pile, which now totals US$86 billion. Slumping investment, according to Sightline, is “a sign that the sector has evolved beyond the frenzied, sometimes indiscriminate funding strategies” from 2020 to 2021, with investors “upping the bar for deals” in search of more fundamentally sound bets. Assets under management among energy transition-focused funds saw a “dramatic increase” in 2022, the Sightline report said, creating “an unprecedented capital overhang” that persists across the sector.