CalSTRS and APG in second Argo infrastructure alliance

Dutch pension fund APG and California State Teachers’ Retirement System (CalSTRS) have extended their partnership to invest in North American infrastructure.

In 2015, the two institutional investors each committed $250m (€214m) to a strategy managed by Argo Infrastructure Partners.

CalSTRS, a $225bn US pension fund, stated in its latest semi-annual report that it has approved a $300m (€257m) commitment to a follow-up alliance.

APG said it had committed a “similar investment size” to that reported by CalSTRS.

A spokesman for the €480bn Dutch pension fund manager said “APG has shared governance rights with CalSTRS”, giving it the ability to approve all new acquisitions and dispositions, “in addition to other items”.

It was announced this week that an investment vehicle managed by Argo has acquired Hudson Transmission Partners, a 660MW electric transmission line, from Ares Management and Starwood Energy Group Global. Financial details were undisclosed.

CalSTRS continues to ramp up its infrastructure exposure. According to the report, it is also considering a $250m commitment to the BlackRock Global Energy & Power Infrastructure Fund III, and a $300m commitment to a separate account called Project Golden Aino.

The BlackRock Real Assets fund announced a first close in July, securing $1.5bn of capital. According to sources, BlackRock hopes to eventually raise $3.5bn.

Project Golden Aino targets a diversified portfolio of infrastructure assets. CalSTRS did not disclose the manager of the account.

CalSTRS also said it is considering a $200m commitment to an agriculture separate account.

Related images

  • Electric Transmission Line

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