CalPERS' investment committee approved starting its second manager development program and will issue an RFP to create a "spring-fed pool" of new strategic advisers, said Brad Pacheco, spokesman. The $166 billion California Public Employees' Retirement System, Sacramento, has an existing $2.5 billion manager development program with strategic advisers Progress Putnam Lovell and Strategic Investment Management; it provides venture capital and investment funds to emerging managers in exchange for a minority equity stake in the firms. The new program will give the CalPERS board final say on the selection of hedge fund of funds for the program. System officials have not scheduled a timeframe for issuing the RFP, he said. Wilshire Associates assisted.
The investment committee also approved issuing an RFP for a real estate consultant on Oct. 25, Mr. Pacheco said. Current consultant PCA can rebid. Proposals are due Dec. 3; finalist interviews are scheduled for April 18.
Separately, CalPERS committed $22 million to Markstone Capital Partners and $15 million to Emergence Capital Partners. Funding came from the $166 billion system's Alternative Investment Management Program. Markstone has raised $450 million of a targeted $500 million to invest in old-economy companies headquartered in or generating revenues from Israel. Emergence Capital is raising its first venture capital fund to invest in early-stage companies delivering technological and infrastructure services. The fund had its first closing of $68 million in April and has a $100 million target. Grove Street Advisors assisted with the Emergence Capital commitment; Hamilton Lane assisted with the Markstone Capital commitment.