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In a move signaling deeper conviction in climate-focused investing, the $374.3B California State Teachers’ Retirement System (CalSTRS) is partnering with Carlyle AlpInvest to scale up access to co-investments targeting climate solutions.
The initiative aligns with CalSTRS’ broader push to integrate sustainability into its portfolio while securing long-term financial returns for its more than one million members, according to a news release.
The collaboration leverages Carlyle AlpInvest’s expansive global co-investment platform — spanning $97B and deep relationships with more than 300 private equity managers — to complement CalSTRS’ existing direct investment capabilities. This strategic move will enable the pension fund to participate in a broader pipeline of climate-related transactions beyond what its internal team could source alone.
For CalSTRS, the partnership is not just about scaling capital but reinforcing its positioning as a forward-looking institutional investor with a defined sustainability mandate, noted the release.
“Partnering with Carlyle AlpInvest will help add the scale and execution expertise needed to advance our investment objectives,” said Nick Abel, portfolio manager of CalSTRS’ sustainable investment and stewardship strategies, in the news release.
“This collaboration aligns with our long-term outlook and mission to provide a secure retirement for California’s public educators and their beneficiaries,” he added. “The collaboration enhances the way we access opportunities to further position CalSTRS as a global partner of choice and supports our commitment to delivering financial results alongside positive sustainability outcomes.”
With this new initiative, both parties aim to identify and invest in private equity opportunities with measurable sustainability impact across a range of climate-related themes. The strategy will follow a flexible, intent-based framework — an approach increasingly favored by large limited partners seeking to balance environmental, social, and governance goals with risk-adjusted returns.
Carlyle AlpInvest, which has a dedicated responsible investment function, framed the effort as part of its long-standing commitment to sustainable investing. “This effort reflects that focus and builds on our long-standing commitment to responsible investment and helping partners pursue investment strategies that drive positive, strategic outcomes,” said Maaike van der Schoot, head of responsible investment at Carlyle AlpInvest, in the news release.
As allocators continue to weigh how best to deploy capital in the face of climate risk and energy transition opportunities, the CalSTRS-AlpInvest partnership underscores the growing appetite among large public plans for specialized co-investment platforms that offer both access and alignment.
