Nuveen, CalSTRS partner on $2bn sustainable infra investment

Nuveen has partnered with CalSTRS to invest up to $2 billion in sustainable infrastructure through Nuveen's Energy Infrastructure Credit (EIC) strategy.

EIC provides private debt to assist companies transitioning to a low carbon economy, while also ensuring energy security.

Nuveen said the partnership is a landmark commitment to finance the buildout of critical infrastructure that supports the clean energy economy and promotes energy security for the United States and abroad.

The investment focus will include renewable power generation, energy storage, industrial decarbonisation, energy efficiency solutions and circular economy investments.

The partnership will also invest in the onshoring of infrastructure supply chains to support domestic US manufacturing jobs and the build-out of artificial intelligence and the digital economy.

"The demand for new energy, power, and digital infrastructure has never been greater. 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," Nuveen Energy Infrastructure Credit global head Don Dimitrievich said.

"We believe private credit is uniquely positioned to play a leading role in financing that buildout while also achieving positive sustainable outcomes. We are thrilled to work with CalSTRS as a long-term partner to scale strategies that seek to deliver strong risk-adjusted financial performance while also investing in communities and businesses to make energy more readily accessible and clean for all stakeholders."

CalSTRS said the partnership aligns the long-term nature of sustainable infrastructure credit with its plan's core mandate of generating attractive risk-adjusted returns for California's more than one million public-school educators while also delivering positive sustainability results and reducing or avoiding emissions.

"This investment with Nuveen EIC aligns with our long-term outlook and mission to provide a secure retirement for our members," CalSTRS investment director Nick Abel said.

"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."