CalPERS' staff is recommending the fund continue to obtain merchant banking capabilities. The staff reported that merchant banks can invest large amounts of money for Sacramento-based CalPERS and can invest more quickly than the pension fund. The $140 billion fund already has invested in two merchant banks - Lombard Pacific Partners and JEDI II - and has plans to invest in another called Venture Capital Vehicle.
Separately, CalPERS' staff is recommending issuing an RFP for further timber investments. The fund has a $1.2 billion timber portfolio managed by Hancock Timber Resource Group.