CalPERS committed $375 million to Coller International Partners V, which buys private equity stakes on the secondary market. The $231.5 billion California Public Employees' Retirement System, Sacramento, has committed $275 million to prior Coller funds.
In other private equity deals, CalPERS committed: $300 million to California Emerging Ventures IV, a separate account fund of funds run by Grove Street Advisors; €100 million ($131 million) to the Polish Enterprise Fund VI, a middle-market fund investing in Central and Eastern Europe run by Enterprise Investors; A$80 million (US$63 million) to Ironbridge Fund II, a buyout and growth capital fund investing in Australia and New Zealand; and $43 million to Lime Rock Partners IV, which invests in lower- to middle-market companies in the energy sector.
Separately, California state Controller John Chiang asked the CalPERS board to examine how excessive executive pay can be curtailed. The effort marks Mr. Chiang's first initiative at CalPERS since he became state controller in January. In a Jan. 18 letter to CalPERS Board President Rob Feckner, Mr. Chiang asked the board how the agency can force corporate boards to change high payouts stemming from a change in control or from severance or retirement bonuses "that are inconsistent with shareholders' interests."
Mr. Chiang cited Home Depot Inc.'s payment of a $104 million severance bonus to departing CEO Robert Nardelli, on top of $88 million in severance pay already in his existing contract. Mr. Chiang also asked Mr. Feckner to have CalPERS review the independence of compensation consultants hired by boards.
The issue will be addressed at the investment committee's Feb. 20 meeting.