Industry Updates

CalPERS to launch new investment vehicle for local emerging managers

Tuesday, July 12, 2011

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Real Desrochers Opalesque Industry Update – The California Public Employees’ Retirement System has announced plans to launch a new investment vehicle that will focus on domestic emerging managers aimed at pension fund’s private equity program.

Réal Desrochers, Senior Investment Officer for CalPERS’ Alternative Investment Management Program said: “Through the manager, we’re looking for partnerships whose principal officers have individual experiences and underlying investment strategies to generate earnings in the top quartile of private equity investments. This entails partnerships or direct investments, deal sourcing, analyzing, screening, due diligence, negotiating and closing transactions, monitoring and exiting investments.”

Desrochers said CalPERS has initiated a Request for Information process to cast a wide net for a vehicle that is structured as a customized fund-of-funds to invest in partnerships that may be under-capitalized.

It added that the partnership is expected to generate a sizeable potential for superior risk-adjusted rates of returns for CalPERS AIM program.

CalPERS said it is hoping to establish a long-term relationship with managers who will invest on behalf of the pension fund for a duration between seven and ten years across the private equity spectrum, including venture capital, expansion capital and leverage buyout transactions.

The new investment vehicle will supplement other emerging manager portfolios in the AIM Program to diversify investments and generate added profits by partnering with managers and funds. It is hoped that eventually, the managers will join the core AIM lineup of partners and funds.

Interested parties wanting to participate in the program can submit their intentions by completing a submission form that can be downloaded on the CalPERS website at www.calpers.ca.gov until July 25.
Precy Dumlao

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