Nuveen and CalSTRS Invest $2 Billion in Sustainable Infrastructure
Overview
Nuveen, managing $1.4 trillion in global assets, has formed a strategic partnership with CalSTRS, the world’s largest educator-only pension fund. Together, they aim to invest up to $2 billion in sustainable infrastructure through Nuveen’s Energy Infrastructure Credit (Nuveen EIC) business. This partnership signifies a significant commitment to advancing critical infrastructure for the clean energy economy, enhancing energy security both in the U.S. and internationally.
Key Points of the Partnership
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Anchor Investment: CalSTRS will act as an anchor investor in the Energy & Power Infrastructure Credit Fund II (EPIC II), paving the way for future investment strategies related to sustainable infrastructure.
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Investment Focus: The partnership targets a wide range of sustainable infrastructure opportunities, including:
- Renewable power generation
- Energy storage
- Industrial decarbonization
- Energy efficiency solutions
- Circular economy investments
Additionally, it will support domestic manufacturing and the growth of AI and digital economies.
Comments from Leadership
Don Dimitrievich, Global Head of Nuveen Energy Infrastructure Credit, emphasized the urgent need for new energy and infrastructure investments, linked to the expansion of AI and the electrification of the economy. He believes that private credit can play a crucial role in financing this growth while achieving sustainable outcomes.
Nick Abel, Investment Director at CalSTRS, noted that this investment aligns with their mission to secure retirement for over one million public-school educators while promoting sustainability and reducing emissions.
Conclusion
Nuveen EIC is positioned as a leading investor in clean energy and infrastructure, aiming to provide flexible funding solutions that facilitate project development and long-term asset ownership. Their efforts coincide with projected increases in U.S. power demand linked to digitalization and AI, making this partnership strategically beneficial for long-term institutional investors.
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