By investment structure, co-investments/direct investments had the highest 10-year returns in CalPERS’ private equity portfolio. Through June 30, co-investments had an annualized 10-year return of 16.5%, according to the pension fund’s semiannual private equity performance report, prepared by Pension Consulting Alliance.
Co-investments represent only 4% of the overall private equity portfolio.
Partnerships, which represent the largest portion of the portfolio by net asset value (75%), were next with a 12.1% annualized return over the 10-year period.
The report notes it is the first time customized investment accounts were categorized, a structure to which a “number of large commitments have been made” recently. Those investments returned 18.7% over the one-year period, but 10-year returns were only 1.7%.