Return to search

CalPERS eyes mid-market with year-end commitments

  • Commits $350 mln to Welsh Carson
  • Pledges $50 mln to Siris Capital
  • Pension has a 10.5 pct allocation to PE

The California Public Employees’ Retirement System  committed $400 million to middle-market private equity in December, according to an investment report released in advance of its Feb. 17 meeting.

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.