The US$1.3 trillion global asset manager announced the initiative on Thursday, which will build on the firm’s existing US$36 billion in private infrastructure debt and equity as well as listed infrastructure.
As part of the changes, Jessica Bailey, who previously served as CEO of Nuveen Green Capital, has been appointed as head of global infrastructure in a freshly minted role responsible for scaling the platform.
With global infrastructure investment needs estimated at US$94 trillion through 2040, driven by energy transition, digital transformation and ageing infrastructure, the platform positions the firm to capture opportunities in the space.
Commenting on the announcement, Nuveen CEO Bill Huffman said the initiative was the result of multiple decades of strategic development of the firm’s broader alternative investment capabilities.
“Today we’re ready to meet the unprecedented client demand for infrastructure exposure across both public and private markets,” Huffman said.
The newly structured platform essentially brings together multiple established teams spanning sustainable real estate financing, clean energy development, infrastructure credit and digital infrastructure equity investments.
“By bringing together our specialised teams, we can better serve clients who are seeking to allocate capital to the infrastructure investments that are essential to the global economy,” Huffman said.
He further emphasised the firm’s commitment to delivering comprehensive infrastructure solutions across the risk-return spectrum, from development-stage clean energy projects to stabilised digital infrastructure assets and differentiated securitised investment-grade opportunities.
This announcement was echoed by a recent statement by Clearbridge Investments highlighting a growing global trend of private capital taking over infrastructure funding roles once filled by governments.
It stated that with corporate balance sheets and institutional investors now providing the “lion’s share” of funding, the asset base for contracted infrastructure, in particular, is experiencing rapid expansion.
At the time, portfolio manager at ClearBridge, Charles Hamieh, added that technological advancements are accelerating this dynamic, with the surge in AI-driven data centres and cloud computing fuelling an “unprecedented surge” in power demand.
In turn, he said this necessitates a substantial capital investment in the generation, transmission and integration of new technologies – creating a “structural growth runway” for listed utilities.
Despite private capital filling a crucial funding void in infrastructure projects, private credit more broadly has drawn criticism in recent months for issues including opaque remuneration and fee structures, valuation practices and inconsistent disclosure terminology.
Last month, ASIC released a report recommending stronger governance and clearer standards across the sector, which has since garnered support from major industry bodies including the Financial Services Council and the Australian Investment Council.
Australian Investment Council CEO Navleen Prasad acknowledged the necessity of clear guardrails to balance investor protection market confidence, and growth for the asset class while commending its importance.
“Private capital is the source of crucial investment into start-ups and growth businesses. It drives innovation, employment and competition across the entire economy,” she said at the time.
