Pension fund targets managers that have outgrown the emerging managers program
CalPERS will launch a search Wednesday for one or more newer real estate managers to run a portfolio of between $200 million to $400 million in separately managed accounts as part of its transition manager program, said Clinton Stevenson, investment director for the investment manager engagement program.
The allocation could grow over time.
The mandate is to invest in midsize office and mixed-use buildings in New York City and/or the San Francisco Bay Area. Among the qualifications are the manager must have an office in New York or the San Francisco Bay Area.
Officials at the $357.3 billion California Public Employees' Retirement System, Sacramento, expect to post the solicitation on its website Wednesday, with a selection made by investment staff as early as October. Those wishing to receive an email when the solicitation has been released, can complete a form and select "real estate." The solicitation is expected to be posted on CalPERS website.
Transition managers are managers that have grown to the point that they are no longer eligible for CalPERS' emerging manager program but may not be established enough for the pension fund's traditional lineup. CalPERS has already invested with three private equity transition managers and a global equity manager, and staff are looking for more transition managers. Mr. Stevenson declined to provide details of the other searches.
Among the minimum qualification for the real estate manager mandate include that the manager must have between four and six funds or separately managed accounts, at least five years experience working with institutional investors and a track record in the asset class.