CalPERS is searching for so-called transition equity and private equity managers, part of a new $7 billion program, the pension system announced in a press release.
The program is designed for early-stage managers who no longer fit the parameters of emerging managers. Existing managers will be considered.
CalPERS equity emerging managers have less than $2 billion in assets under management. There are no set requirement for emerging private equity managers, but generally they are involved in raising their first few funds.
For public equity managers, they must have between $2 billion and $15 billion in assets under management. Private equity managers must offer a buyout or growth equity strategy, be raising a fund of at least $ 1 billion, have assets under management of more than $1 billion and be raising either their third, fourth, fifth or sixth institutional fund.
The $323.6 billion California Public Employees' Retirement System, Sacramento, will be making approximately $500 million investments with potential managers offering various equity strategies, excluding frontier markets. The private equity commitments will be a minimum of $100 million.
The full $7 billion will be given to managers under the current search, and the pension fund will also be having a second solicitation in 2019. The funding source could not be learned by press time.
Proposals for the equity search are due at 3 p.m. PDT Aug. 29. Finalists are scheduled to be selected between December and January. Finalist interviews are scheduled to take place between February and March 2018 and CalPERS plans to post a notice of intent to award contracts in April 2018. The contracts are expected to start between May and July 2018.
Proposals for the private equity search are due at 3 p.m. PDT Aug. 31. Finalist interviews are scheduled for November and December.
A copy of the solicitation can be obtained on CalPERS' website.
CalPERS officials were not available by press time for additional details.