Nuveen, the investment arm of Teachers Insurance and Annuity Association of America (TIAA), and the California State Teachers’ Retirement System (CalSTRS) have teamed up to invest as much as US$2 billion in sustainable infrastructure.
The money will be allocated through Nuveen’s energy infrastructure credit division, and target areas such as renewable power generation, energy storage, industrial decarbonisation, energy efficiency solutions, and onshore infrastructure supply chains to support the growth of the artificial intelligence economy, according to a statement from Nuveen on July 15.
CalSTRS will also serve as an anchor investor for Nuveen’s sustainable infrastructure portfolio in energy and power infrastructure strategy.
Nuveen says the partnership aims to provide “bespoke capital solutions to finance the buildout of critical infrastructure that supports the clean energy economy and promotes energy security for the US and abroad”.
According to Don Dimitrievich, global head of energy infrastructure credit at Nuveen, the rapid expansion of AI and onshoring of manufacturing and industrial supply chains are creating a generational need for new infrastructure investments.
“We believe private credit is uniquely positioned to play a leading role in financing that buildout while also achieving positive sustainable outcomes,” he says.
Chicago-based Nuveen managed around US$1.4 trillion of assets as of end-March. CalSTRS had around $408.3 billion of assets as of April 30.
