CalSTRS Teams With Dutch Pension to Invest In North American Energy

CalSTRS has joined forced with the Dutch pension fund ABP to invest in energy infrastructure in North America, according to a report from IP Real Estate.

From IP Real Estate:

The two investors will each invest $250m (€230m) in the consortium, which will be run by investment manager Argo Infrastructure Partners.

CalSTRS said the alliance is an opportunity to build a “more diverse portfolio of investments in North America than they would have otherwise been able to make on their own”.

ABP has a €30bn stake in energy and energy infrastructure, alongside €1bn invested in sustainable energy, including onshore windfarms.

Spokesman Harmen Geers recently said ABP wanted to double its share in renewable energy to €2bn.

“Finding the right investments is not easy, as the investment must be at least €100m, and our investment criteria prevent us from owning more than 50% of any project,” Geers said last month.

APG last year invested in European energy, putting €250m into a European hydropower venture with alternative investments manager, Aquila Capital.

The new consortium will invest in core operating energy assets, including pipelines, storage facilities and power utilities.

CalSTRS said it will target facilities with existing cash flows that will need ongoing maintenance and future expansion capital.

ABP has not yet confirmed that it is a part of the venture.

CalSTRS confirmed that it was indeed a part of such a venture, but would not confirm it was partnering with ABP.

CalSTRS has approximately $1.5 billion invested in infrastructure around the world.

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