US - The California Public Employees' Retirement System has committed a further US$400m to Centinela Capital Partners, which will oversee a new private equity fund of funds for emerging managers.
The announcement means the $220bn pension fund has now invested $650m in the asset class in the space of a week, after it had earlier allocated $250m to California-based private equity funds as part of its California Initiative Program.
The emerging managers within Centinela will make investments across the private equity spectrum, including venture capital, expansion capital and leverage buyout transactions.
The fund of funds would be structured in a way to allow other public pension funds to investment alongside CalPERS.
“This venture will enable us to seize new market opportunities created by significant population developments at the state and national levels,” said Fred Buenrostro, CalPERS CEO. “We believe we can gain a competitive advantage by investing in emerging managers who bring fresh insights in how to generate returns in the market.”
Fund CIO Russell Read said the Centinela venture was part of CalPERS' Alternative Investment Management (AIM) programme to improve investment gains. "We're looking for more specialised approaches, closer relationships with our partners and to break new ground," he said.
At June 30 this year, CalPERS' AIM programme outperformed the 18.6% benchmark, posting a return of 19.2%.
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