CalPERS committed a combined up to $15.2 billion to new and existing alternative investment strategies in the third quarter, the $431.2 billion pension fund reported.
California Public Employees' Retirement System, Sacramento, committed an additional $1.5 billion to Tower Bridge Infrastructure Partners, a private equity infrastructure fund managed by Global Infrastructure Partners; and committed an additional $1.3 billion to Golden Reef Infrastructure Trust, an existing separately managed account run by infrastructure manager QIC.
CalPERS also committed a total of $2.1 billion to three private credit strategies all managed by Owl Rock Capital Partners: $1 billion to OR Diversified Lending (CP), $600 million to OR Diversified Lending co-investment and $500 million to OR Diversified Lending overflow.
Pensions fund officials committed $750 million to Ares Sports, Media & Entertainment Finance, Ares Management's private equity and credit fund that invests in sports leagues, sports teams and sports-related franchises, as well as media and entertainment companies; $750 million to IFM Global Infrastructure Fund, an infrastructure fund managed by IFM Investors; and up to $750 million to CA Co-Investment Limited Partnership, managed by private equity firm Advent International.
CalPERS committed an additional $848 million to CalEast Solstice, a real estate joint venture between CalPERS and GI Partners; an additional $821 million commitment to Pacific Urban Investors' Pacific Multifamily Investors, a separate account that invests in apartments in big cities; and added $772 million to Institutional Logistics Partners, a real estate partnership with BentallGreenOak.
Pension fund officials also committed $600 million to Project Quail Opportunities, a buyout fund managed by Thoma Bravo; an additional $555 million to TechCore, a technology-related real estate partnership with GI Partners; and an additional $502 million to Gulf Pacific Power, an infrastructure separate account that is an existing partnership between CalPERS and Harbert Management.
The pension fund committed $500 million each to buyout fund EQT X (No. 2) USD; IDR Core Property Index Trust, a real estate fund managed by IDR Investment Management; and DigitalBridge Strategic Assets Fund, an opportunistic real estate fund managed by DigitalBridge Group.
It also added capital to two multifamily portfolios managed by GID Investment Advisers — $500 million to IMP-DT 2020 and $456 million to FSP-Base, a core office portfolio — and $415 million to IMP-Base managed by CommonWealth Partners.
It committed an additional $250 million to Gotham Office Realty Partnership, managed by Meadow Partners; an additional $248 million to IMI-Base, managed by Institutional Mall Investors, a joint venture between CalPERS and real estate manager Miller Capital Advisory; and committed $200 million to Oak HC/FT Partners V, a multistage venture capital fund.
CalPERS also committed a total of $282 million to four Sequoia Capital China venture capital funds: $134 million to Sequoia Capital China Expansion Fund I, $104 million to Sequoia Capital China Growth Fund VII, $32 million to Sequoia Capital China Venture Fund IX and $12 million to Sequoia Capital China Seed Fund III. CalPERS also committed $100 million to Tiger Global Private Investment Partners 1-Y, a venture capital fund managed by Tiger Global Management.
Separately, CalPERS reported returns for periods ended June 30 for its private capital portfolios, which lag by one quarter. Private equity lost -6.1% for the year, outperforming its -15.3% benchmark; earned 13% for five years, outstripping its 9.2% benchmark; and returned 12.8% for 10 years, just over its 12.4% benchmark.
Real assets earned 2.8% for the year, underperforming its 4.4% benchmark; 8.4% for five years, outperforming its 9.5% benchmark; and 9.4% for 10 years, above its 9.8% benchmark. The pension fund's new private debt portfolio was flat for the quarter ended June 30, outperforming its -5% benchmark.
"As with other institutional investors, our private assets were not spared from the impacts of global turmoil and domestic economic volatility," said CalPERS CEO Marcie Frost in a written statement. "While the final numbers are informative, we remain focused on long-term performance, and our members can be confident that their retirement is safe and secure."
The pension fund calculates its fiscal-year returns with its private market performance numbers lagging by one quarter, meaning CalPERS officials use March 31 returns for its private market asset classes. CalPERS had $72.3 billion in real assets, $48.8 billion in private equity and $7.7 billion in private debt as of Sept. 30.
"Private market performance from April to June will be captured in next year's total fund returns," spokesman Joe DeAnda said in an email.