CalPERS assigns $500 million to private equity emerging manager fund of funds

CalPERS has hired Grosvenor Capital Management to run a $500 million private equity emerging manager fund-of-funds portfolio for the so-called pillar one of its new private equity investment model, said Megan White, spokeswoman for the $342 billion California Public Employees' Retirement System, Sacramento.

Grosvenor manages about $250 million in GCM Grosvenor DEM II, a private equity emerging manager fund of funds. In April, CalPERS launched a search because the investment period under Grosvenor's contract was due to expire in October. Grosvenor also has a commitment of $100 million from CalPERS for its GCM Grosvenor DEM I.

The new assignment brings to $850 million the total committed to Grosvenor among the three funds of funds. Grosvenor is currently the sole manager within pillar one of the new model.