UK Nuclear Liabilities Fund selects Brookfield to manage initial $1bn

The Nuclear Liabilities Fund (NLF) has selected Brookfield to manage a long-term, multi-asset investment mandate, with an initial commitment of $1bn (€850m).

The mandate will be managed by Brookfield’s Investment Solutions Group (ISG), which will draw on the investment capabilities across the firm to construct a portfolio tailored to NLF’s objectives, risk parameters and investment horizon, it was announced.

The portfolio will invest globally across Brookfield’s infrastructure, energy, private equity, real estate and private credit strategies. Investments are expected to comprise fund commitments, direct investments and co-investments.

The mandate is designed around the multi-decade nature of NLF’s liabilities associated with decommissioning eight of the UK’s nuclear power stations.

Brookfield said the investment horizon will be aligned with NLF’s multi-decade funding requirements, with the aim of supporting long-term capital growth and compounding investment returns to help meet future decommissioning costs.

Investment proceeds are expected to be reinvested into new opportunities rather than routinely distributed, allowing capital to remain invested across market cycles.

For NLF, the mandate is intended to ensure that sufficient assets are available to meet future decommissioning costs “without unnecessary reliance on taxpayers”.

Alper Daglioglu, head of Brookfield’s Investment Solutions Group, said: “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, NLF’s chief executive officer, said: “Our mandate is to ensure that sufficient assets are available to meet the future costs of decommissioning eight of the UK’s nuclear power stations.”

She added that Brookfield stood out in a competitive selection process for its “depth of global investment capability, long-term perspective and disciplined approach to portfolio construction and governance”.

The partnership is intended to support NLF’s obligations over a multi-decade horizon.