CalPERS committed $80 million to a new California-focused private equity fund to be run by Grosvenor Capital Management, said spokesman Joe DeAnda on Wednesday.
The new fund will focus on providing California-based companies with mezzanine debt financing.
Ted Eliopoulos, chief investment officer, said in a statement the aim of the program will be to support the growth and expansion of California companies.
“It’s great to have a hand in stimulating job creation and economic growth in our home state as we seek the best risk-adjusted returns for the portfolio,” Mr. Eliopoulos said.
The new fund is part of an effort by the $293.7 billion California Public Employees’ Retirement System, Sacramento, to revitalize its California Initiative, which was first established in 2001 as a $1 billion private equity investment, but which has been plagued by poor investment returns.
The original initiative was aimed at investing in companies in underserved markets, but not exclusively in California.
Grosvenor already runs three emerging manager private equity funds of funds for CalPERS, for a total of around $950 million in commitments.