CalPERS, the California based public employees pension fund, has approved a $500m (£350m) venture capital investment.
According to the $169bn (£118bn) pension fund, the $500m (£350m) investment will be made through California Emerging Ventures, an investment vehicle which is managed by Grove Street Advisors for the Sacramento based fund.
CEV currently has 74 investment teams in the venture capital investment sector. According to CalPERS, preliminary performance analysis indicates that CEV has a 78% gross internal rate of return for all its portfolio investments.
William Crist, president of the pension fund’s board of administration said of the investment: “Venture capital investments represent a large portion of the private equity market. It is important that we continue to invest with the top tier venture capital teams through market cycles.”
Additionally, CEV is the vehicle through which CalPERS will buy Sports Capital Partners from JP Morgan Chase, in a $122m (£85.5m) deal. Under the terms of the agreement, the $169bn pension fund will pay Chase $22m for it's $37.5m stake. Apart from the $22m purchase fee, CalPERS will also take over JP Morgan Chase's remaining unfunded commitment to SCP of $62m. Additionally, CalPERS will commit an extra $38m to SCP.
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