Officials of the $181.9 billion CalPERS are seeking approval to commit up to 10% of net active alternative investments with a single firm, double the current 5% limit. CalPERS currently has $8.6 billion invested in alternatives.
For top-quartile funds, staff is requesting that the senior investment officer in charge of the program be allowed to commit up to $400 million or 20% of a fund's final capitalization, whichever is less, up from $200 million or 15% of the fund', whichever is less. CalPERS' CIO would have discretion to commit the lesser of $800 million or 30% of a fund's final size, up from the lesser of $400 million or 25% of fund size currently.
For second-quartile funds, the senior officer would be allowed to commit the lesser of $100 million or 10% of fund size without board approval; currently, no such discretion exists. CalPERS' CIO would be permitted to commit the lesser of $200 million or 20% of a fund's final size, double the current limits.
The CalPERS investment committee is to vote on the proposal May 16.