[This article was reported on "Radar M," a paid media specializing in economic and capital markets, on July 15 (10:00)]
Nuveen Asset Management announced on the 15th that it has signed a strategic cooperation with the California Teachers' Pension (CalSTRS, Calsters), the world's largest pension fund exclusively for faculty and staff.
Calsters plans to invest up to $2 billion (W3.98 trillion) in sustainable infrastructure investments through the Nubin Energy Infrastructure Credit (EIC) segment.
The two institutions plan to supply funds needed to build core infrastructure through customized financial solutions. Through this, it plans to build a clean energy economy and strengthen energy security in the United States and around the world.
Calsters will participate as an anchor investor in the "Sustainable Infrastructure Portfolio" within Nubin's "Energy and Power Infrastructure Credit Strategy."
In addition, it has laid the groundwork for participation as an anchor investor in the future in a complementary investment strategy that supports the establishment of core infrastructure necessary for the clean energy economy.
The investment targets of this cooperation are expected to cover the entire infrastructure, including △ renewable energy generation △ energy storage △ industrial decarbonization △ energy efficiency solution △ circular economy investment.
It will also contribute to the creation of primary manufacturing industries by investing in infrastructure supply chain on-shoring (production in the country) in the United States. It also supports the establishment of artificial intelligence (AI) and digital economies that will drive economic growth in the US and OECD countries.
"New demand for energy, power and digital infrastructure is greater than ever," said Don Dimitrievich, global director of Nubin Energy Infrastructure Credit.
"Private equity credit is the best investment tool to raise the funds needed to build new infrastructure and create sustainable performance," he stressed.
The collaboration allows Calsters to provide an attractive risk-adjusted return to more than 1 million California public school faculty and recipients.
With AI and digital transformation, U.S. electricity demand is expected to double or triple by 2035. The strategy from Nubin and Calsters is expected to meet duration conditions and target returns suitable for long-term institutional investors.
"Investing in sustainable infrastructure credits requires expertise to discover, vet and structure customized financial solutions and is a very important investment for Calsters," said Nick Abel, California's investment director.
"Through this investment cooperation, we will pursue high risk-adjusted returns and contribute to a cleaner, more resilient and reasonable clean energy economy," he added.
The Nubin EIC segment designs various financing structures, including credit offerings, structured loans, equity solutions, and preferred stock investments, and works with management and infrastructure equity investors to support project development, construction, and long-term asset retention.
Meanwhile, Nubin is a management company under the U.S. Teachers' Pension Fund (TIAA), which manages 1.4 trillion dollars (2118.76 trillion won) of public offering and private equity as of the end of March last year.
