US - The US$200bn California Public Employees' Retirement System's (CalPERS) private equity "Initiative Program" posted strong annual gains of 16.3% in its fourth year since inception.
CalPERS committed $475m to the initiative in November 2001, according to investment committee chair Charles Valdes.
This private equity programme is still relatively young, so we anticipate even more significant performance as our investments mature in the coming years,” he said.
The initiative has seen nine private equity partners and one fund-of-funds investing in traditionally underserved markets, primarily in California, to take advantage of opportunities that had been overlooked.
Since such markets are less efficient than others, the potential for superior performance is greater long-term, said interim CIO Anne Stausboll: Besides earning returns, we're making a positive impact on the economy of formerly bypassed California markets.”
Stausboll added that CalPERS had identified three key benchmarks of underserved markets: companies that have limited access to capital, companies that employ workers who reside in economically disadvantaged areas, and companies that have female and/or minority management.
Meanwhile, CalPERS has re-signed State Street as its master custodian.
Currently, CalPERS has approximately $132bn invested in US and international equities, $49bn invested in US and international fixed income, $9bn in real estate, and $10bn invested in private equity.
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