The CalPERS investment committee on Monday approved doubling the limits that top staff can make in real estate and other real asset investments without seeking approval of the investment committee.
The new limits for the $31.8 billion asset class allows Paul Mouchakkaa, managing director, real assets, to make individual real estate investments up to $3 billion, up from $1.5 billion, and Chief Investment Officer Theodore Eliopoulos to make real estate investments up to $6 billion, up from $3 billion.
There is a combined $10 billion limit that both men can invest on a yearly basis in real estate without investment committee approval, up from $7 billion. It includes investments with real estate managers as well as direct investments.
Upon questioning from investment committee members, Mr. Mouchakkaa said the new limits were needed because of intense competition from other pension plans over larger core real estate deals. Waiting for investment board approval could risk losing a potential deal, he said.
Infrastructure investments, also part of the real asset class, will also have new limits. Mr. Mouchakkaa will be able to invest up to $1 billion, up from $500 million, and Mr. Eliopoulos can invest up to $2 billion, up from $1 billion, without investment committee approval.
Total infrastructure investments on a yearly basis for the $303.3 billion California Public Employees' Retirement System, Sacramento, now will have a limit of $3 billion, up from $2 billion.