Deals
Calpers Launching Startup and Long-Term Private Equity Funds
- Pension giant could add $13 billion a year in unlisted stakes
- Institutions focusing on fees as return expectations shrink
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The largest U.S. pension is making its biggest push ever into private investing, with plans to pour as much as $13 billion a year into non-public companies.
Hoping to outdo stock and bond returns, the $349 billion California Public Employees’ Retirement System on Thursday is unveiling two new in-house strategies that will directly buy stakes in companies -- a bid to boost returns by circumventing fees paid to traditional private equity managers. The fund expects “muted returns” of only about 6 percent over the next 10 years, missing its long-term target, Chief Investment Officer Ted Eliopoulos said in an interview Thursday on Bloomberg TV.