At least seven pension funds lost their private equity investments in Washington Mutual, following its failure and subsequent purchase by JPMorgan Chase, according to a source.
At least six pension funds had invested in TPG Capital VI, which, in turn invested in Olympic Partners. Olympic, a special situations fund sponsored by private equity firm TPG Capital, lost its $2 billion investment in WaMu.
Investors in the $19.8 billion TPG VI include CalPERS, New York State Common Retirement Fund, Illinois Teachers' Retirement System, Washington State Investment Board, Los Angeles City Employees Retirement System and the San Francisco City & County Retirement System.
CalPERS committed $950 million to TPG Partners VI, which closed in February, said Clark McKinley, spokesman at the $223 billion system. He wouldn't answer any other questions.
And at least two pension funds CalPERS and the New York State Teachers' Retirement System invested in TPG IV, which also invested in Olympic.
Separately, Harris Associates' Oakmark Funds lost big on Washington Mutual, according to sister publication Crain's Chicago Business. Three Oakmark Funds added nearly 12 million WaMu shares in the second quarter, boosting holdings 29% to 39.5 million. The shares lost all value on Sept. 26.