CalPERS investment committee is targeting $500 million for the biotech industry. The $177 billion California Public Employees Retirement System, Sacramento, will vote Monday on a two-pronged strategy. First, the fund will continue to invest with leading venture capital groups that target the biotech area, including Oxford Biosciences, Perseus Soros Biopharma Partners and Schroder Life Sciences. Second, the fund will pursue innovative investment opportunities in the sector, including four immediate allocations totaling $285 million: up to $100 million as the lead investor in Prospect Venture Partners II; up to $100 million through a strategic relationship with MPM Capital to invest in its Biotech Hedge Fund and $50 million next year in another MPM fund; and $35 million in two funds through Burrill & Co. It also will allocate up to $50 million in a biotech fund sponsored by EuclidSR Partners, formed in January from the merger of Euclid Partners and S.R. One Ltd.
Separately, CalPERS made its second investment in an emerging manager through Progress Highcrest Advisors. The firm is investing $2.7 million in Broadmark Asset Management, which runs $150 million in growth stock and alternative investment strategies. Progress Highcrest also is allocating $100 million to the manager to invest in its large-cap growth stocks.