CalPERS staff will ask the $302 billion pension fund's investment committee at its Sept. 15 meeting to approve the selection of three finalists for the committee's private equity consultant — incumbent Pension Consulting Alliance, Albourne America and Meketa Investment Group.
CalPERS' current contract with PCA started July 1, 2009, and ends June 30, 2015. The recommendation is contained in agenda materials for next week's investment committee meeting.
The materials show Albourne America is the front-runner for the new contract with a rating by CalPERS staff of 446 points based on proposed fees and a technical review. PCA followed with 411 points and Meketa had 388 points.
Albourne America has proposed a total fee of $2 million for a five-year contract period, compared to PCA's $2.5 million and Meketa's $2.8 million.
Ultimately, the consultants' interviews at the investment committee's Oct. 13 meeting will likely determine which firm is selected. The interview portion allows each firm to be awarded up to 500 points.
An RFP was issued in June.
At the investment committee meeting on Sept. 15, committee members will also be interviewing the three finalists for infrastructure consultant: incumbent Meketa Investment Group, and the other two finalists, StepStone Group and Courtland Partners.
Stepstone, which has proposed a total fee over five years of $583,000, has the highest staff score of 437 points, followed by Meketa with 428 points and Courtland Partners with 316 points. Meketa has proposed a $644,000 fee, while Courtland wants $835,000.
The interview portion of the interview will count for 500 points, the same amount as for the private equity consultant.
The investment committee can reject three applicants and rebid the item if it does not feel the finalists are suitable, according to the agenda materials.
The investment committee is expected to make a recommendation on the matter after the interviews on Sept. 15, said Joe DeAnda, a spokesman for the California Public Employees' Retirement System, Sacramento.