Updated with correction.
Now that an infrastructure alliance created between the $191.3 billion California State Teachers' Retirement System, West Sacramento, and Dutch money manager APG Asset Management NV has completed its first investment — an electricity transmission cable under the Long Island Sound — its manager is looking for more investors to join the consortium.
Manager Argo Infrastructure Partners of New York is hoping to raise a total of $1 billion for four or five projects, said Larry Kohn, a founding partner of Argo. CalSTRS and APG, which is owned by the e344 billion ($391 billion) Stichting Pensioenfonds ABP, Heerlen, Netherlands, each seeded the coalition with a $250 million commitment.
The alliance's first acquisition of Cross-Sound Cable Co.'s transmission cable, which shuttles power between the New England and Long Island power grids, is expected to be a typical project for the consortium, Mr. Kohn said. Risk is lower because Long Island Power Authority has a 17-year contract to buy the power.
Even without additional investors, the alliance, founded in April, has enough capital to still make four or five investments, just for smaller amounts, said Richard Klapow, an Argo managing director.