- 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.