CalPERS committed up to a total of $6.6 billion to alternatives in the fourth quarter of 2021, according to a staff report for Monday's investment committee meeting.
In addition, the $466 billion California Public Employees' Retirement System, Sacramento, on Monday hired its general investment consultant, Wilshire Advisors, for the additional mandate of also serving as the board consultant for the pension plan's new 5% new private debt allocation.
The pension fund did not conduct an RFP "due to current time constraints," a staff memo to the investment committee said. The private debt consultant was to be in place by July 1. At Monday's meeting, the investment committee directed staff to conduct RFPs for the private debt consultant and a general investment consultant as soon as practical. Wilshire's contract is set to expire in June 2023.
In November, CalPERS adopted an asset allocation that included a new 5% private debt allocation. The other finalist recommended by the staff was Meketa Investment Group, CalPERS' current private equity, real assets and infrastructure board consultant.
Regarding the commitments, the pension fund slated $3 billion for five strategies managed by private credit manager Oak Hill Advisors: $1 billion to OHA Co-invest Opportunities Fund; and $500 million each to OHA Credit Solutions Fund II, OHA Credit Solutions Fund II (CA Parallel), OHA Senior Private Lending Fund (CA 3) and OHA Senior Private Lending Fund (CA 5).
Pension fund officials also committed up to $500 million to OS Corp Loans, a credit strategy managed by Blackstone; up to $400 million to Berkshire Spectre Co-Investor, an alternative investment vehicle managed by Berkshire Partners; and $375 million to Greenleaf Co-Invest Partners, a buyout strategy managed by the Carlyle Group.
CalPERS also committed $350 million to Sixth Street Mid-Stage Growth Partners and made a follow-on commitment of $350 million to GID Investment Advisers, a co-investment fund. The pension fund also made a follow-on commitment of $300 million to Middlefield Road Private Opportunities Fund, a private equity fund managed by Summit Partners.
Pension fund officials also committed up to $200 million to Project Metal Co-Invest Fund, a private equity co-investment fund managed by Thoma Bravo; and $198 million to CD&R Value Building Partners I, a private equity continuation fund formed to hold Clayton Dubilier & Rice's investment in vehicle glass repair and replacement company Belron.
CalPERS committed $110 million to AP IX Connect Co-Invest Holdings, which is co-investing alongside Apollo Global Management's Apollo Investment Fund IX in the purchase of parts of Lumen Technologies business, including its local exchange carrier subsidiaries and their assets in 20 states, according to Federal Communications Commission documents. CalPERS is an investor in Apollo Investment Fund IX.
Pension fund officials also made a follow-on commitment of $80 million to Pacific Urban Residential for a portfolio of multifamily assets in the Western U.S., committed $50 million to Beyond SPV I, a venture capital strategy managed by Goodwater Capital; and $50 million to RSK Aggregator, a private equity strategy managed by TA Associates.
In addition, a total of $605 million committed to funds managed by Tiger Global Management, Permira, BlueRun Ventures and Dragoneer Investment Group was previously reported.
