Brookfield Selected to Manage Nuclear Liabilities Fund Investment Mandate

Brookfield Asset Management has been selected by the Nuclear Liabilities Fund (NLF) to manage a long-term, multi-asset investment mandate worth an initial $1 billion. This strategic partnership aims to support NLF in achieving the necessary returns to cover the future costs of nuclear decommissioning in the UK.

NLF, established in 1996, is an independent ring-fenced fund responsible for decommissioning eight nuclear power stations in the UK. The fund has already paid approximately £3 billion in decommissioning costs, with the decommissioning program expected to continue well into the next century. Brookfield will draw on its extensive investment capabilities across infrastructure, energy, private equity, real estate, and private credit strategies to construct a portfolio tailored to NLF’s specific objectives and investment horizons.

The investment mandate, managed by Brookfield’s Investment Solutions Group (ISG), will be structured to reinvest capital and deliver long-term compounding. ISG is chaired by Oaktree Co-Chairman Howard Marks and led by Alper Daglioglu. Daglioglu emphasized the importance of the partnership, stating, "NLF has an exceptionally long investment horizon, and that creates an opportunity to invest differently. Our partnership is built on a shared belief in long-term thinking, disciplined capital allocation, and the power of compounding over decades."

Melissa Hope, CEO of the Nuclear Liabilities Fund, expressed confidence in Brookfield’s capabilities. "Following a competitive selection process, Brookfield stood out for its depth of global investment capability, long-term perspective, and disciplined approach to portfolio construction and governance. This partnership is designed to support our obligations over a multi-decade horizon, and Brookfield’s breadth of capabilities, long-term investment approach, and experience investing through multiple market cycles make them a natural partner for this important mandate."

The partnership aligns with Brookfield’s commitment to developing customized solutions for institutional investors. ISG will construct a portfolio tailored to NLF’s specific objectives and continue to evolve it over time. The mandate aims to support NLF in meeting future decommissioning costs without relying on taxpayers. Investments are expected to include a combination of fund commitments, direct investments, and co-investments, with proceeds to be reinvested into new opportunities rather than distributed.

Brookfield Asset Management, headquartered in New York with over $1 trillion in assets under management, has a long-standing history of investing in essential service businesses that form the backbone of the global economy. The company offers a range of alternative investment products to investors, focusing on real assets and essential service businesses.

The Nuclear Liabilities Fund’s investment mandate is a significant step in ensuring that the costs of decommissioning nuclear power stations are met over a long-term horizon. This partnership underscores Brookfield’s commitment to responsible investing and its ability to deliver long-term value for its clients.