The California Public Employees' Retirement System, Sacramento, committed $485 million to a new partnership between the retirement system and UBS Global Asset Management, which will pursue infrastructure investments in core markets, said Brad Pacheco, a CalPERS spokesman.
The partnership is part of CalPERS’ efforts to increase infrastructure investments, which make up only $1.6 billion, or about 0.5% of the $300.6 billion fund’s portfolio. CalPERS officials in the past have said they had difficulty in finding suitable infrastructure investment opportunities.
Under the partnership agreement, UBS will contribute $15 million and will manage the investments, said a CalPERS news release. The partnership, called Golden State Matterhorn LLC, will use the services of UBS Global’s infrastructure and private equity business unit.
The partnership was formed on June 30 and plans to make two-to-four infrastructure investments over the next four years.