Generate Capital Raises $1.5 Billion from Calstrs, Hesta, QIC

Generate Capital, an investment firm focused on sustainability and infrastructure, raised $1.5 billion in new equity from an investor group including the California State Teachers’ Retirement System.

Australian superannuation funds Hesta and AustralianSuper, along with Brisbane, Australia-based QIC, also committed capital, Generate said Wednesday. The San Francisco-based firm has full discretion over the equity, which it describes as permanent capital, and expects to amplify it with leverage, Chief Executive Officer Scott Jacobs said in an interview.

Generate, which typically raises new equity every two years, plans to spend the capital on building projects and companies, and ...