Investment firm Nuveen secures $1.3 billion for a new fund dedicated to power generation and sustainable infrastructure credit projects.
Nuveen's Energy & Power Infrastructure Credit Fund II Targets Growing Global Energy Demand
Investors are seeking strategies that offer downside risk mitigation to guard against macro volatility, inflationary, and geopolitical risks. One such strategy is the Energy & Power Infrastructure Credit Fund II (EPIC II), managed by Nuveen.
EPIC II, with a target of $2.5 billion, primarily invests in the entire energy and power ecosystem. This includes sectors such as renewables, energy storage, hydrocarbons, midstream, and liquified natural gas (LNG). The fund provides directly-originated private credit solutions, including project and corporate financings, acquisition funding, recapitalizations, and structured credit.
Geographically, EPIC II targets companies and projects in North America, Europe, and other OECD countries. These regions are benefiting from the increasing demand driven by digitalization, electrification, and reindustrialization.
The fund emphasizes downside risk mitigation through hard asset collateral, long-term contracts with strong counterparties, and pricing protections. It seeks investments with strong projected cash flows and resilience against macroeconomic, inflationary, and geopolitical risks. Nearly half of the fund’s capital commitments come from investors outside the U.S., including institutional investors such as global insurers and pension funds from Japan and Korea.
Nuveen, the investment manager of EPIC II, has raised $1.3 billion in capital commitments at the first close of the fund. The fund is anchored by commitments from a leading Canadian pension fund manager and financial services provider TIAA.
Dimitrievich, Senior Managing Director & Portfolio Manager, Energy Infrastructure Credit at Nuveen, stated that the focus remains on deploying capital into resilient companies and projects across the energy and power ecosystem. He added that investors are increasingly interested in strategies that capitalize on their conviction in the growing global energy demand brought on by digitalization, electrification, and reindustrialization.
In summary, EPIC II aims to capitalize on the historic market opportunity created by growing global energy demand while providing durable income potential and downside protection. The fund invests across the entire energy and power ecosystem, supporting the growing demand for energy and power arising from digitalization, electrification, and the reindustrialization of North America, Europe, and other OECD countries.
Technology plays a crucial role in EPIC II's investments, as it is leveraged to optimize energy processes and improve efficiency within renewables, energy storage, and digitalization efforts. Finance is also integral, as the fund offers directly-originated private credit solutions, providing capital for projects and corporations within the energy and power ecosystem.
