Pensions
CalSTRS to Anchor Nuveen Sustainable Infrastructure Fund
The Energy & Power Infrastructure Credit Fund II will receive up to $2 billion from the California State Teachers’ Retirement System.
Reported by Matt Toledo
The California State Teachers’ Retirement System will commit up to $2 billion to a sustainable infrastructure fund from Nuveen’s energy infrastructure credit business, the investment manager announced Tuesday.
In establishing a partnership between the firms, CalSTRS will serve as an anchor investor for Nuveen’s Energy & Power Infrastructure Credit Fund II, which will support financing for the buildout of clean energy infrastructure.
Nuveen’s EPIC II raised $1.3 billion in capital commitments from institutional investors in August 2025, including an unidentified Canadian pension fund and TIAA, Nuveen’s parent company.
“The demand for new energy, power and digital infrastructure has never been greater,” said Don Dimitrievich, Nuveen’s global head of energy infrastructure credit, in a statement. “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. We believe private credit is uniquely positioned to play a leading role in financing that buildout while also achieving positive, sustainable outcomes.”
EPIC II will target investments across sustainable infrastructure opportunities, according to the announcement, including renewable power generation, energy storage, industrial decarbonization, energy efficient solutions and circular economy investments.
The fund will also invest in the onshoring of infrastructure supply chains, according to Nuveen, with the goal of supporting domestic manufacturing jobs and the build-out of artificial intelligence—itself a major driver of demand for energy infrastructure investments.
A February report from Morgan Stanley noted that large technology companies were committing more than $1 trillion to the sector in the 2025-26 period, with roughly half coming from debt markets.
Demand for power relating to AI and digital infrastructure is projected to increase by two to three times by 2035, according to Nuveen.
“This investment with Nuveen EIC aligns with our long-term outlook and mission to provide a secure retirement for our members,” said Nick Abel, CalSTRS’ investment director for sustainable investments and stewardship strategies, in a statement. “We believe sustainable infrastructure credit requires specialists’ expertise to originate, underwrite and structure bespoke capital solutions.”
Abel added that sustainable infrastructure credit represents an important allocation for the pension fund as it seeks to generate strong risk-adjusted returns while contributing to a cleaner, more resilient and affordable energy economy.
The pension fund’s sustainable investments and stewardship team has deployed more than $5.5 billion to expand investments in low-carbon solutions. The fund also allocated $32.8 billion—approximately 20% of its public equity portfolio—to a low-carbon index as of December 31, 2025.
CalSTRS managed $417.3 billion in assets as of May 31 and provides retirement benefits for more than 1 million beneficiaries.