CalPERS talks adjustments to private equity portfolio

The $355bn US public pension discusses its proposed new private equity investment framework.

The California Public Employees’ Retirement System (CalPERS) heard proposals to adjust its private equity portfolio allocations as part of a new investment structure at yesterday’s investment committee meeting.

The investment board of the $355 billion US public pension discussed plans to increase its overall private equity allocation to 10 percent, which would entail an additional $10 billion to $13 billion in commitments. Additionally, the board discussed a staff proposal to increase the allocation to buyout strategies in the pension’s PE portfolio from 60 percent to 65 percent, correspondingly decreasing its allocation to credit-oriented strategies to 20 percent from 25 percent.

CalPERS currently has an 8 percent allocation to private equity. Platinum subscribers may click here for the pension’s full profile, including key contacts, allocation strategy and fund investments.