Global asset manager Nuveen and the California State Teachers’ Retirement System have formed a strategic partnership to invest up to $2 billion in sustainable infrastructure. The capital will be deployed through Nuveen’s Energy Infrastructure Credit business, providing bespoke financing solutions to accelerate the clean energy economy and enhance energy security across the United States and international markets.
Under the terms of the agreement, CalSTRS—the largest educator-only pension fund globally—will serve as the anchor investor for the sustainable infrastructure portfolio within Nuveen’s Energy & Power Infrastructure Credit Fund II. The partnership also positions the pension fund to anchor future, complementary investment strategies aimed at supporting critical low-carbon infrastructure.
The investment mandate covers a broad spectrum of sustainable infrastructure opportunities, including renewable power generation, energy storage, industrial decarbonisation, energy efficiency, and circular economy projects. Additionally, the partnership will target the onshoring of domestic manufacturing supply chains and the rapid build-out of infrastructure required to support artificial intelligence and the digital economy, which are projected to drive significant power demand across OECD countries.
Don Dimitrievich, Global Head of Nuveen Energy Infrastructure Credit, noted that the expansion of artificial intelligence, manufacturing relocation, and the broader electrification of the economy are creating a generational demand for new power and digital infrastructure. He emphasised that private credit is uniquely positioned to finance this expansion while securing positive environmental outcomes.
For CalSTRS, which serves more than one million public-school educators and beneficiaries, the commitment aligns long-duration infrastructure credit with its core mandate of generating strong risk-adjusted financial returns. With US power demand tied to data centres and AI projected to multiply significantly by 2035, institutional investors are increasingly looking to private credit to capitalise on the energy transition. Nick Abel, Investment Director at CalSTRS, stated that sustainable infrastructure credit represents an important allocation for the fund as it seeks to contribute to a cleaner, more resilient, and affordable energy economy.
Nuveen EIC will leverage its structuring expertise to provide flexible financing, ranging from credit facilities and structured debt to preferred equity solutions, partnering with project developers and equity sponsors to support construction and long-term asset ownership.
