CalPERS and Progress Highcrest Advisors will invest $3 million to acquire a 15% stake in Arrowstreet Capital, the first move by the $175 billion funds manager development program.
Arrowstreet, formed in July by former PanAgora Asset Management executives, will run $100 million in an active international equities portfolio for the California Public Employees Retirement System, Sacramento, increasing Arrowstreets assets under management to nearly $330 million.
Progress Highcrest is a new joint venture between Progress Investment Management and Putnam Lovell Capital Partners. Through Highcrest Capital Partners, Putnam Lovell already owns a 15% stake in Arrowstreet.
CalPERS manager development program seeks new and emerging managers lacking long-term track records. CalPERS and Progress Highcrest will provide firms with business management, infrastructure and other support.