Investment manager Nuveen announced that it has raised $1.3 billion in capital commitments at the first close of Energy & Power Infrastructure Credit Fund II (EPIC II), reaching more than half of its $2.5 billion target for the infrastructure-focused private credit strategy.

Anchored by commitments from a leading Canadian pension fund manager and financial services provider TIAA, the fund aims to support of the growing demand for energy and power arising from digitalization, electrification and the reindustrialization of North America, Europe and other OECD countries, according to Nuveen. Nuveen is the investment manager of TIAA.

Don Dimitrievich, Senior Managing Director & Portfolio Manager, Energy Infrastructure Credit, said:

“Investors are increasingly interested in strategies that capitalize on their conviction in the growing global energy demand brought on by digitalization, electrification and reindustrialization while also seeking downside risk mitigation to guard against macro volatility, and inflationary and geopolitical risk.”

EPIC II provides directly-originated credit solutions supporting the build-out of secure and reliable energy and power generation while also focusing on credit opportunities involving sustainable infrastructure. The fund invests across the entire energy and power ecosystem, in areas including renewables and energy storage to hydrocarbons, midstream and liquified natural gas, and in investments ranging from bespoke project and corporate financings to fund equipment and growth capital to acquisition financings, recapitalizations and structured credit solutions.

Nuveen said that nearly half of the commitments for the fund came from outside the U.S., with participation from institutional investors including global insurers, Japanese and Korean public and corporate pensions, asset managers and other limited partner investors.

Dimitrievich added:

“As we reach this latest milestone, we remain focused on deploying capital into resilient companies and projects across the energy and power ecosystem that capture this historic market opportunity while providing durable income potential.”