CalPERS board approved a $150 million commitment to Dresdner Kleinwort Benson Emerging Europe LP despite an intense grilling from board members Willie Brown Jr., mayor of San Francisco, and Kathleen Connell, California state controller.
The $172 billion California Public Employees Retirement System, Sacramento, will be the cornerstore investor in the central and eastern European private equity fund. Dresdner Bank Group will ante up $65 million to the partnership, the most the Frankfurt, Germany-based bank ever has committed to a deal involving third parties, and will split general partner profits 50/50 with CalPERS.
In addition, Dresdner Kleinwort Benson will try to raise up to $35 million more in financing from third parties, though the fund could be stretched to $300 million. The European Bank for Reconstruction and Development is a possible investor, noted Barry Gonder, a senior investment officer at CalPERS.