Nuveen and CalSTRS form $2bn sustainable infrastructure credit partnership

The California State Teachers’ Retirement System (CalSTRS) has formed a strategic partnership with Nuveen to invest up to $2bn (£1.5bn) in sustainable infrastructure via Nuveen’s Energy Infrastructure Credit (EIC) business.

The partnership will provide capital solutions to finance the buildout of critical infrastructure that supports the clean energy economy, with a focus on investing in renewable power generation, energy storage, industrial decarbonisation, energy efficiency solutions and circular economy investments.

The $408.3bn pension fund will serve as an anchor investor for the sustainable infrastructure portfolio in the Energy and Power Infrastructure strategy and will also anchor future complementary investment strategies.

Through the partnership, Nuveen and CalSTRS will also invest in the onshoring of infrastructure supply chains to support domestic manufacturing jobs, as well as the build-out of artificial intelligence and the digital economy.

Nuveen EIC provides flexible financing, including credit facilities and structured debt and equity solutions to preferred equity investments, partnering with management teams and infrastructure equity sponsors to aid project development, construction, and long-term asset ownership.

“The rapid expansion of artificial intelligence, the onshoring of manufacturing and industrial supply chains, and the broad electrification of the economy are collectively creating a generational need for new infrastructure investment,” said Don Dimitrievich, global head of Nuveen Energy Infrastructure Credit.

He added that private credit is positioned to “play a leading role” in financing that buildout.

“This investment with Nuveen EIC aligns with our long-term outlook and mission to provide a secure retirement for our members,” said Nick Abel, investment director at CalSTRS. “We believe sustainable infrastructure credit requires specialists’ expertise to originate, underwrite and structure bespoke capital solutions. Sustainable infrastructure credit also represents an important allocation for CalSTRS as we seek to generate strong risk-adjusted returns and contribute to a cleaner, more resilient, and affordable clean-energy economy.”