US - Schroder Investment Management North America has pulled out of the running for up to $1.8bn in emerging markets mandates, mandates that were put out to tender by the $156bn California Public Employees Retirement System (CalPERS).
In a letter to the pension fund, Ellen Sullivan, director of Schroder's in New York, said that the fund manager had to pull out of the running as it has closed its emerging markets investment products to new investors. CalPERS is looking for managers to run a total of $1.8bn in emerging markets, and is set to hold interviews with shortlisted managers in October, with a final decision on mandates expected in November.
With Schroders gone, 14 firms are still in the running for the emerging markets mandates. On the shortlist is Alliance Capital Management; Sanford Bernstein Investment Management; Capital Guardian Trust; Deutsche Asset Management; Dimensional Fund Advisors; Foreign & Colonial Emerging Markets; Genesis Asset Managers; Grantham, Mayo, Van Otterloo & Company; JP Morgan Investment Management; Putnam Investments; Rexiter Capital Management; State Street Global Advisors; Franklin Templeton Institutional; and Wellington Management Company.
Additionally, the fund has made five new private equity investments this month. Two UK based private equity firms, Candover and Bridgepoint, will receive a total of $250m. CalPERS has allocated $100m to the Bridgepoint Second European Private Equity Fund, whilst the Candover 2001 Fund, a buyout fund, will receive 150m.
The Sacramento-based fund has committed $10m to Aberdare Ventures II, a venture capital fund. A $15m investment will be made in the Berkshire Fund VI, a buyout fund. The fund was founded by Bradley Bloom, one of the five former partners of Thomas H Lee, one of CalPERS current private equity managers.
The other three private equity investments include a $100m commitment to the Texas Pacific Group's T3 Partners II fund, a technology-based fund. The ARCH Venture Partners V fund will receive $10m, alongside a $24m commitment to the CalPERS Healthcare Side Fund, a co-investment vehicle. The pension fund giant claims that this relationship will allow it to co-invest with ARCH on a systematic basis. ARCH is a technology fund which seeks to identify and commercially exploit university and national laboratory innovations.
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