California Public Employees Retirement System, Sacramento, invested a total of $2.5 billion with four private equity funds and two corporate governance funds in April, according to recently released documents on the $245.4 billion pension funds website.
In private equity, CalPERS invested $1 billion in the Apollo Credit Opportunities Fund; $500 million in the Capital Link Fund II run by Centinela Capital Partners; $400 million in the Yucaipa American Alliance Fund II and $300 million in TowerBrook Investors III. The two corporate governance investments are $200 million in Taiyo Cypress Fund, a joint venture between Taiyo Pacific Partners and WL Ross & Co.; and $100 million in Lazard Korea Corporate Governance Fund, according to the CalPERS website.
Separately, CalPERS two manager development programs, where the pension fund takes an equity stake in emerging firms, have delivered lackluster returns since they were implemented, according to a review of the programs to be presented at the systems June 16 investment committee meeting. The $1.6 billion MDP I program with eight underlying managers has returned an annualized 2.25% since inception in June 2000, underperforming its custom benchmark by 1.71 percentage points. The MDP II program, with $564.7 million in assets, has returned -0.02% annualized since inception in March 2007; its custom benchmark returned 1.46%.