Deals
Calpers CIO Eyes More Private Equity, Leverage to Hit Target
- Meng says strategic shift is needed at biggest U.S. pension
- ‘There is no alternative,’ investment chief tells the board
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California’s giant public pension fund has a giant problem: Its $400 billion portfolio isn’t profitable enough and won’t be without a major change in strategy. That’s what Chief Investment Officer Ben Meng is about to undertake.
At Monday’s meeting of the California Public Employees’ Retirement System, Meng will tell board members that the fund has to take greater risk, he said in an interview. He’ll explain that Calpers must increase its allocation to buyout funds, add private credit and, further departing from its past as a conservative holder of stocks and bonds, use leverage to enhance returns.