CalPERS, the giant US pension fund, has picked 12 asset managers for its $500m (£261.5m) California Initiative program, which is part of the fund's alternative investments portfolio.
As part of the program, CalPERS will form a corporate partnership with the Yucaipa Corporate Initiative Fund, which will receive $200m (£104.6m) of funds. The existing managers in the alternative investments portfolio that receive new mandates are Green Equity Partners California Opportunity Fund ($50m); Levine Leichtman California Growth Partners ($50m); and the Draper Fisher Jurvetson Central Fund ($20m).
Middle market private equity mandates will be given to Blue Capital Partners Fund II ($25m); Opportunity Capital Partners Fund IV ($25m); and Provender Opportunities Fund II ($25m). The Bank of America California Community Venture Fund, a fund of funds, will receive $50m.
The remaining mandates are California Embarcadero Fund ($25m); American River Ventures Fund ($10m); Garage California Entrepreneurs' Fund ($10m); and Silicon Valley Community Ventures Fund II ($10m).
The California Initiative program is designed to provide funding to underserved markets primarily in CalPERS’ home state of California. The objective for the program is to discover and invest in opportunities that may have been overlooked or not reviewed by the usual processes, in order to achieve attractive risk adjusted returns.
The 12 manager selections are subject to final approval from the pension fund’s investment committee.
McKinsey & Company assisted with the search.
By Geoffrey Ho
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