CalSTRS staff recommended increasing the system's international private equity investments to 25% of its alternatives portfolio, from 15%. Staff at the $116 billion California State Teachers' Retirement System, Sacramento, also proposed expanding the geographic scope of the international portfolio, now at $5.4 billion, beyond Canada, the United Kingdom and Western Europe to other areas, investing on an opportunistic basis. Consultant McKinsey & Co. assisted. Current North American gatekeeper Cambridge would add the Far East and Latin America, while Western European gatekeeper Altius would add Eastern Europe and the Middle East. CalSTRS would need to hire an investment officer to support the change. The CalSTRS board will consider the recommendation at its May 5 meeting.
Separately, CalSTRS committed up to $50 million to Paul Capital Partners VIII; up to $35 million to ARCH Venture Fund VI; $30 million to Summit Subordinated Debt Fund III; and $20 million to Blackstone Chemical Coinvest Partners (Cayman), a co-investment pool formed to purchase Celanese AG shares. The system also made follow-on commitments of $45 million to FS Equity Partners V, now totaling $95 million, and $5 million to a co-investment in Force10 Networks.