Conversus Capital and Oak Hill Investment Management are part of a four-partner syndicate that purchased a portfolio of about $189 million in private equity fund interests and $25 million in unfunded commitments from the $246 billion California Public Employees Retirement System, Sacramento, confirmed CalPERS spokesman Clark McKinley. The sale is the first of a $2 billion portfolio of 40 legacy private equity partnership interests that CalPERS officials plan to sell on the secondary market. The sales are part of a restructuring of CalPERS $21.4 billion private equity portfolio to reduce the number of relationships it has with top investment management firms and create separate bundled portfolios to invest in smaller private equity funds such as clean technology, venture capital, health care and emerging markets, he said. The assets were middle-tier funds in our alternative investment management portfolio (in contrast with upper-tier funds, in terms of performance), Mr. McKinley said.
CalPERS total legacy portfolio has about $1 billion in unfunded commitments covering a broad range of domestic and international strategies, including buyout, venture capital, mezzanine and distressed debt.