Published by Global Banking & Finance Review®
Posted on January 21, 2026
1 min readLast updated: January 21, 2026
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SOFAZ and Brookfield have signed a $1.4 billion strategic agreement to explore investments in energy and digital infrastructure over the next few years.
BAKU, Jan 21 (Reuters) - Azerbaijan's sovereign wealth fund SOFAZ and Brookfield Asset Management signed a long-term strategic cooperation agreement worth up to $1.4 billion on Wednesday, a spokesperson for SOFAZ told Reuters.
Under the agreement, signed at meeting in Davos, SOFAZ will assess opportunities to invest in Brookfield-managed funds and co-investment projects over the next three to four years, the spokesperson said.
The partnership will also explore Azerbaijan's investment potential in areas including energy transition, renewable energy and digital infrastructure.
Founded in 1999, SOFAZ has expanded its investment portfolio into Europe in recent years, including the purchase last July of a 49% stake in Italian solar plants owned by U.S. renewable energy company Enfinity Global and a $66 million investment in London's Gatwick airport in October 2025.
SOFAZ's total assets as of last October, the most recent data, amounted to $70.16 billion, according to official figures.
(Reporting by Nailia Bagirova; Editing by Guy Faulconbridge )
SOFAZ, or the State Oil Fund of Azerbaijan, is a sovereign wealth fund established to manage the country's oil revenues and invest in various sectors to promote economic stability.
A sovereign wealth fund is a state-owned investment fund that manages a country's reserves, typically derived from natural resources, to generate returns for future generations.
Renewable energy refers to energy sources that are naturally replenished, such as solar, wind, and hydropower, and are considered more sustainable than fossil fuels.
Co-investment is a collaborative investment strategy where multiple investors pool their resources to invest in a specific project or fund, sharing both risks and returns.
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