Big-time private equity firms like KKR & Co. LP, Blackstone Group LP and Apollo Global Management LLC, aren't emerging managers by a long shot, but they and other big private equity firms had been classified that way by the $239.3 billion California Public Employees' Retirement System, Sacramento.
The CalPERS' investment committee on Sept. 10 voted to change its private equity glossary and classify an emerging manager as one raising its first or second institutional fund.
Previously, the glossary allowed established firms creating a new strategy, or that had hired a new management team, to be considered an emerging manager.
“It didn't make sense“ that the old designation allowed some of biggest private equity firms to be classified as emerging managers, Joseph Dear, CalPERS chief investment officer, said in an interview.
This article originally appeared in the September 17, 2012 print issue as, "CalPERS refines classification for emerging managers".