CalPERS commits $1.7bn across eight funds

CVC Capital Partners’ latest buyout fund leads the pack with a €500m commitment from the public pension giant.

The California Public Employees’ Retirement System has disclosed more than $1.7 billion (€1.1 billion) in fresh commitments to eight private equity managers.

The $234.2 billion pension, which in a recent memo detailed its struggles with tempering an overweighted private equity allocation, made its largest commitment to CVC Capital Partners’ fifth buyout fund, which closed on €12.1 billion last March.

CalPERS invested €500 million in CVC European Equity Partners V, which will focus on leveraged buyouts in Western Europe, the US, Asia and Eastern Europe, according to a description of the fund in a CalPERS’ investment committee meeting agenda. CalPERS has a total of $1.8 billion in net commitments to the London-based firm.

The pension made its second largest commitment to Ares Corporate Opportunities Fund III, which has already closed on $4 billion in commitments. CalPERS invested $400 million in the fund, the third private equity fund the Los Angeles-based investment firm has raised since its inception in 1997.

The Ares fund will invest between $100 and $400 million in refinancing, balance sheet restructuring, growth capital, management buyouts and reorganisation transactions through subordinated debt and common equity. CalPERS has a total of $930 million in net commitments to Ares managed funds.

CalPERS also committed $200 million to Asia Alternatives Capital Partners II, an Asia-focused fund of funds which has held a final close on $1 billion; $100 million to TPG Biotechnology Partners III, a life science venture fund targeting $550 million; and $85 million to Lime Rock Partners V, an energy fund which closed on $1.4 billion last May.

Rounding out the commitments was $75 million to Apollo European Principal Finance Fund, a distressed debt fund targeting €1.5 billion; $75 million to Levine Leichtman Capital Partners V, a buyout fund targeting $1.5 billion; and $50 million to Aberdare Ventures IV, an early stage healthcare fund targeting $250 million.