CalPERS and Strategic Investment Group will buy an equity stake in LM Capital Group; neither disclosed the amount. The $149 billion California Public Employees’ Retirement System, Sacramento, also allocated $100 million to LM Capital for an active domestic fixed-income portfolio as part of CalPERS’ and Strategic’s joint venture manager-development program. LM is the third manager overall, and the first fixed-income manager, chosen for the program, which seeks emerging managers to achieve superior portfolio investment returns and also to profit from the equity stake as LM’s business grows.
CalPERS will invest in LM’s active core strategy, primarily in U.S. investment-grade fixed-income securities.
