CalPERS and CalSTRS would be barred from future investing in private equity funds and companies partially or wholly owned by some sovereign wealth funds under a bill being considered in the California Assembly. The bill, sponsored by Assemblyman Alberto Torrico, pertains to sovereign wealth funds of countries that are not signatories of five of six specified international human rights treaties.
If passed, the $240.6 billion California Public Employees Retirement System and the $173.7 billion California State Teachers Retirement System, both of Sacramento, would have to evaluate the private equity firms and their funds before making a new investment or renewing an existing investment and issue a detailed written report in connection with the evaluations.
CalSTRS and CalPERS are investors in the Carlyle Group and Apollo Management. Carlyle in September sold a 7.5% stake to Mubadala Development Corp., owned by the Abu Dhabi government, and in May sold a 10% stake to Chinas investment company. Apollo Management in November sold a 9% stake to the Abu Dhabi Investment Authority.
CalPERS staff is analyzing the bill and will present an assessment to the board in mid-March, said CalPERS spokesman Clark McKinley in an e-mail.
The bill analysis hasn't been completed just yet, wrote CalSTRS spokeswoman Sherry Reser, in another e-mail. The board was expected to discuss its position March 6, she added.
The bill has not yet been assigned to a committee, said Jeff Barbosa, Mr. Torricos communication director.