CalPERS’ Argüelles heads to Ontario Teachers’

The long-time private equity portfolio manager at CalPERS is taking a role with Teachers’ Private Capital to work on Latin American-focused fund investments.

Jesús Argüelles, a private equity portfolio manager with the California Public Employees’ Retirement System, is stepping down to take a position with Teachers’ Private Capital, the private equity arm of the Ontario Teachers’ Pension Plan (OTTP).

Argüelles has been with CalPERS private equity programme since 2002. At Teachers’, Argüelles will be responsible for fund investments with a focus on Latin America, according to a spokesperson with Teachers'. It’s not clear if the Latin America funds focus is new at Teachers’; the spokesperson was not available for additional comment as of press time.

Teachers’ does have a global funds team led by vice president Nicole Musicco. The group includes investment professionals who have regional expertise, including director Alison Nankivell, who joined OTPP last year to lead the system’s fund investing activities in Asia. Portfolio manager Tanya Carmichael focuses on fund investment in North America and Asia; and portfolio manager Raju Ruparelia specialises in the emerging markets.

Jesús
Argüelles

Like many other Canadian pension systems, Ontario Teachers’ private equity strategy includes direct investing as well as fund commitments. Teachers’ Private Capital is widely viewed in the industry as akin to a private equity firm competing with other managers for deals.

However, the system continues to operate a robust funds commitment business, according to a spokesperson. The system has built more than 20 “core strategic relationships” with private equity and venture capital managers, according to its web site. Teachers’ Private Capital also is a member of the Institutional Limited Partners Association.

CalPERS, meanwhile, declined to comment on the move. It’s not clear if Argüelles is being replaced, but the system recently hired Harshal Shah as a private equity portfolio manager. Shah had worked for investment consultant Strategic Investment Solutions.

Argüelles was one of a number of CalPERS' investment officers caught up in a 2011 investigation by California watchdog agency the Fair Political Practices Commission for allegedly failing to properly report gifts. It's not clear if his case was resolved, but public documents show the Commission had proposed to levy a $2,200 penalty against Argüelles.