CalPERS staff recommended committing an additional $500 million to California Emerging Ventures, its alternative fund of funds for investing in venture capital managed by Grove Street Advisors. The new allocation, to be reviewed Monday by the Sacramento-based California Public Employees Retirement Systems investment committee, would be invested in CEV III. The $169 billion fund committed a total of $730 million to earlier CEV vehicles, plus $587.5 million for five turn-key programs and $745 million for co-investments in funds that invest alongside CEVs discretionary investments. The 2-year-old program generated a gross IRR of 78% as of Sept. 30.
Also, CalPERS staff committed $360 million to six private-equity vehicles: $65 million to Austin Ventures VIII; $125 million to First Reserve IX; $80 million to CEV II; $25 million to Perseus-Soros Biopharmaceutical Fund; an additional $50 million to Spectrum Equity Investors IV, bringing CalPERS commitments to the fund to $65 million; and $15 million to U.S. Venture Partners VIII.
In addition, CalPERS purchased BARRA Inc.s TotalRisk System to provide analytics and risk management. "We wanted a risk-management solution that provided a clear measurement of our aggregate risks across all asset classes, Patricia Pinkos, CalPERS senior principal investment officer, said in a press release.