Nuveen, an investment manager, has announced the successful raising of $1.3 billion in capital commitments at the initial close of its Energy & Power Infrastructure Credit Fund II (EPIC II). This marks a significant milestone, reaching over half of the fund’s $2.5 billion target for its infrastructure-focused private credit strategy.
The fund is supported by commitments from a prominent Canadian pension fund manager and financial services provider TIAA. It aims to address the increasing demand for energy and power resulting from digitalisation, electrification, and the reindustrialisation of North America, Europe, and other OECD countries. Nuveen serves as the investment manager for TIAA.
Don Dimitrievich, Senior Managing Director & Portfolio Manager for Energy Infrastructure Credit at Nuveen, highlighted the growing investor interest in strategies that leverage the global energy demand surge linked to digitalisation, electrification, and reindustrialisation, while also seeking to mitigate risks related to macroeconomic volatility, inflation, and geopolitical issues.
EPIC II offers directly-originated credit solutions to support the development of secure and reliable energy and power generation. It focuses on credit opportunities in sustainable infrastructure, investing across the entire energy and power ecosystem. This includes sectors such as renewables, energy storage, hydrocarbons, midstream, and liquefied natural gas. The fund engages in various investments, from bespoke project and corporate financings to equipment and growth capital funding, acquisition financings, recapitalisations, and structured credit solutions.
Nuveen reported that nearly half of the fund’s commitments originated from outside the United States, with participation from institutional investors including global insurers, Japanese and Korean public and corporate pensions, asset managers, and other limited partner investors.
Dimitrievich emphasised the fund’s focus on deploying capital into resilient companies and projects within the energy and power ecosystem, capturing historic market opportunities while providing potential for durable income.
