Calpers will contribute $485m to the newly formed company, while UBS will contribute $15 million and act as managing member.
The partnership will operate as Golden State Matterhorn and will pursue infrastructure investment opportunities in the U.S. and global developed markets.
“UBS brings extensive experience and a proven track record in global infrastructure investing that makes them a great fit for this partnership,” said Ted Eliopoulos, Calpers Interim chief investment officer.
“We’re excited to work with them as we identify and acquire core assets that will provide the best risk-adjusted returns for our portfolio.”
The Calpers Infrastructure Program seeks to provide stable, risk-adjusted returns to the total fund by investing in public and private infrastructure, primarily within the transportation, power, energy, and water sectors.
Calpers currently holds approximately $1.8bn in infrastructure assets, with a total of $30bn in the real assets portfolio.