CalPERS on Wednesday committed $500 million to Blackstone for the private equity manager to run in a separately managed account, confirmed spokesman Brad Pacheco.
The commitment is to Blackstone's Tactical Opportunities Fund, which “targets investments in all areas of Blackstone's area of expertise,” Mr. Pacheco said. It does not need approval from the board of the $234.3 billion California Public Employees' Retirement System.
The separate account with Blackstone is the first since the Sacramento-based retirement system disclosed late last year that it was in negotiations with its private equity partners to create funds that would have CalPERS as the sole limited partner.
Blackstone spokesman Peter Rose did not immediately return a call for comment.
In early December, the $70.5 billion New Jersey Division of Investment, Trenton, agreed to a similar deal with Blackstone, investing $1.8 billion in a separate account.
In November, the $110 billion Texas Teacher Retirement System, Austin, said it would invest $6 billion a variety of asset classes, including private equity in separate accounts managed by KKR and Apollo Global Management.