CalSTRS staff committed up to $100 million to The Resolute Fund, a buyout fund specializing in middle-market companies. Staff of the $91 billion California State Teachers’ Retirement System, Sacramento, also committed $26 million to Fondinvest VI, a private equity secondary fund-of-funds, and $25 million to a co-investment in the $375 million buyout of Nortek Inc. alongside manager Kelso Investment Associates. CalSTRS also has an indirect investment of $23.4 million through Kelso Investment Associates VI.
CalSTRS’ investment committee also postponed a vote on issuing an RFP for a real estate consultant while staff reviews issues on separating consulting from performance measurement. Pension Consulting Alliance is the current consultant.
Separately, CalSTRS’ board approved rehiring Milliman USA as the pension fund’s consulting actuary for the next three years. Milliman has been the actuary since 1990, except for a stint from 1997 to 1999 when Watson Wyatt had the contract. CalSTRS also plans to hire an independent actuary to audit Milliman’s work, but any RFP would not be issued until late 2003 at the earliest, said Sherry Reser, spokeswoman.
