California State Teachers' Investment Board delegated substantial investment authority on alternative investments to the $88 billion fund's staff. The action was taken as a way to speed up approval of commitments. The staff can approve commitments up to $400 million or 20% of a partnership's capitalization, whichever is less, for partnerships that are sponsored by general partners already included in the CalSTRS' alternative investment portfolio.
For new limited partnerships, the staff can approve commitments of up to $100 million or 20%, whichever is less. For co-investments, the staff can approve commitments up to $50 million or 30% of the CalSTRS' commitment to that partnership, whichever is less.
For secondary limited partnership interests, the staff can commit up to $50 million or 20%, whichever is less. The delegation authority is essentially new. The fund had tried a pilot program before that wasn't renewed.
