CalPERS picks Canyon Capital to run real estate emerging manager program

CalPERS hired Canyon Capital Realty Advisors to manage its new $200 million real estate emerging manager program, according to Joe DeAnda, spokesman for the $239.3 billion pension fund.

The California Public Employees' Retirement System, Sacramento, authorized Canyon to hire up to six managers who each have less than $1 billion in assets under management and no more than three prior commingled or separate account investment offerings. No RFPs will be issued, Mr. DeAnda said.

The program, set to run for five years, will focus on managers and properties in urban California markets. After the five-year term expires, CalPERS staff will consider the feasibility of a second phase.

Canyon Capital manages a $570 million office portfolio, CalSmart LLC, for CalPERS. The retirement fund also invests in Canyon Johnson Urban funds, a joint venture of Canyon Capital and former NBA star Earvin “Magic” Johnson.