Investing in unlisted infrastructure through a fund

BGTF II invests in energy transition, renewable energy and sustainable solutions that contribute to the transition to a net-zero economy. The fund will invest in North America, South America, Europe and the Asia-Pacific region, where Brookfield has established an operational presence. BGTF II has invested and committed approximately 5.2 billion dollar to five leading renewable energy developers: Neoen (France), Geronimo Power (USA), OnPath (United Kingdom), Evren (India) and HRE (South Korea).

In line with market practice, we pay fees to the manager when investing through funds. These fees cover costs associated with the investment work. In addition, the manager is entitled to a share of profits if returns reach a certain level. This is intended to align the interests of the manager and investors. The fees we have paid are set out in the table below. Investors pay their share of costs related to the fund's establishment phase, such as advisory fees, and we have likewise covered our share of the costs of setting up the fund, in line with market practice. As the number of projects and the amount of invested capital grow over time, fees and costs as a proportion of invested capital will decrease.

It is common practice to partly finance infrastructure projects with debt. CIP and Brookfield are expected to do so in their respective funds. Debt as a proportion of the value of investments is set out in the table below. Total fees paid to external managers in connection with investments in unlisted funds in 2025 were approximately 172 million kroner.

The lifecycle of an infrastructure project 

The first is the development of the project, which includes securing a site and obtaining permits for construction and connection to the grid.  The development phase generally features relatively low investment costs and requires local expertise and presence. Towards the end of this phase, once permits have been obtained and the risk of the investment failing is lower, construction contracts and funding agreements can be entered into. If the project is considered profitable once the necessary licences, contracts and funding are in place, it proceeds to the construction phase. In this phase, the actual facility and any necessary associated infrastructure are completed. This is the most capital-intensive period, and so also the period with the greatest risk of impairment losses. Once the facility is complete and producing, storing or transmitting electricity, it moves into the operational phase. This phase often has a steady revenue and cost profile with less investment risk than the construction phase.