SACRAMENTO, Calif. - CalPERS committed $225 million to two Kohlberg Kravis Roberts buyout funds, said Barry Gonder, senior investment officer. The $169 billion California Public Employees' Retirement System committed $150 million to KKR's Millennium fund and $75 million to its Europe fund. Funding will come from cash.
Separately, CalPERS staff recommended committing an additional $500 million to California Emerging Ventures, its alternative fund-of-funds vehicle for investing in venture capital managed by Grove Street Advisors. The new allocation, to be reviewed March 19 by the investment committee, would be invested in CEV III. The 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 CEV's 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.
