The $300 billion California Public Employees’ Retirement System has formed a A$1 billion ($764 million) Asia Pacific infrastructure partnership with Australia-based QIC.

The partnership represents CalPERS’ first Asia Pacific infrastructure commitment. Under the terms of the arrangement, QIC will source, create and manage a portfolio of Asia Pacific infrastructure assets for the partnership. Investments will be targeted in markets such as Australia, New Zealand, Japan, South Korea and Singapore, particularly in transportation, water, power and renewable sectors.

“This is a great opportunity to expand our infrastructure portfolio and to enter the Asia Pacific market,” says Paul Mouchakkaa, CalPERS senior investment officer for real assets, which includes the infrastructure program, in a statement. “QIC has a proven track record of success and is an excellent fit for our program. We look forward to working with them.”

CalPERS is the first U.S. pension f