LPs

CalPERS eyes mid-market with year-end commitments

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calpers
Calpers headquarters is seen in Sacramento, California, October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker (UNITED STATES) - RTXPWO1
  • Commits $350 mln to Welsh Carson
  • Pledges $50 mln to Siris Capital
  • Pension has a 10.5 pct allocation to PE

CalPERS allocated $350 million to Welsh, Carson, Anderson & Stowe XII for investments in healthcare and business services companies. The firm recently held an interim close on $1.7 billion toward its $3 billion target.

CalPERS previously invested $125 million in Welsh, Carson, Anderson & Stowe’s $3.7 billion 2009 vintage fund, which netted a 14.1 percent IRR and 1.4x multiple as of June 30, according to the retirement system.

The $296.4 billion retirement system also committed $50 million to Siris Partners III, which is said to be oversubscribed. Siris Capital is finishing up its third fund with $1.75 billion of commitments.

The firm’s previous fund netted a 53.7 percent IRR through June 30, according to Los Angeles County Employees Retirement Association documents. (Los Angeles County committed up to $100 million to Fund III in November.)

CalPERS had a 10.5 percent allocation to private equity as of Oct. 31. The portfolio is valued at $31.2 billion.