CalPERS rehired Pension Consulting Alliance as the pension fund’s private equity consultant on Monday.
The new contract will start on July 1 and is scheduled to last five years.
PCA’s selection came after firm principals were interviewed in a public session on Monday before the investment committee of the $294.2 billion California Public Employees’ Retirement System, Sacramento. The investment committee also heard presentations from the two other finalists, Albourne America and Meketa Investment Group.
Officials of all three firms said in their interviews that they would work with CalPERS to reduce private equity fees, expanding efforts to increase private equity separate accounts and co-investments.
CalPERS has more than $30 billion invested in private equity and is one of the largest private equity investors in the world.
The investment committee selected PCA in a closed session. The three firms were ranked based on the interview, the fees proposed and their technical presentations.
PCA had the highest score of 800 points, followed by Albourne America with 728 points and Meketa with 724 points.
Albourne had proposed the lowest fees for the combined five years, $2 million, compared to PCA’s $2.475 million and Meketa’s $2.8 million.
The awarding of the contract is subject to final negotiations. PCA was first selected to serve as private equity consultant for CalPERS in May 2009.