CalPERS invested $100 million in Ermitage Highbury Fund, a hedge fund of funds managed by Liberty Ermitage Asset Management Jersey. The $205.8 billion California Public Employees' Retirement System, Sacramento, also invested $50 million each in Chatham Asset Leverage Loan Offshore Fund, which invests principally in senior secured floating-rate loans, and Tennenbaum Multi-Strategy Fund, which invests in various arbitrage and distressed debt strategies.
In private equities, CalPERS committed $100 million to Audax Mezzanine Fund II, a middle-market mezzanine fund; $75 million to Carlyle Asia Growth Partners III, which will take minority stakes in emerging companies in high-growth industries in China, India, Japan and South Korea; and $45 million to Clarus Lifesciences I, which will invest in biopharmaceutical and medical device markets. The Clarus fund closed last December, but CalPERS just disclosed the commitment.
Separately, CalPERS staff recommended allocating an additional $150 million each for co-investments alongside four of the fund's corporate governance managers: SPARX, Shamrock, Hermes European Focus Fund and Taiyo Pacific Partners. Currently, CalPERS can co-invest a total of $500 million with only two of its corporate governance managers, Relational Investors and Knight Vinke Asset Management. CalPERS staff also proposed adding a portfolio manager to oversee the co-investment program. The recommendations will be considered by the CalPERS investment committee on Aug. 14.