Pension Name: California Public Employees’
Retirement System (CalPERS)
Incoming CEO: Anne Stausboll
Outgoing CEO: Mark Anson
Recent Commitments: Carlyle/Riverstone Renewable
Energy Infrastructure Fund I ($60M); Newbridge Asia
IV ($180M); OCM Opportunities Fund VI (50M)
Total Capital Under Management: $195B
Advisors: Pacific Corporate Group; LP Capital Advisors
The California Public Employees’ Retirement System (CalPERS) committed an additional $290 million to private equity last week. The $195.5 billion public pension system also named an interim chief investment officer to replace Mark Anson, who announced last month that he was leaving to become the CEO of London-based fund manger Hermes.
Last week CalPERS named Anne Stausboll as its interim chief investment officer. Stausboll has been the assistant executive officer of CalPERS investment operations since last year. She previously served in the pension system’s legal including being CalPERS’ deputy general counsel. In between she served as general counsel for California’s treasurer and as deputy treasurer.
At its investment committee meeting on Monday, November 14, CalPERS made the following fund commitments:
CalPERS committed $60 million to the Carlyle Group’s Carlyle/Riverstone Renewable Energy Infrastructure Fund I. The energy buyout fund has a target of $300 million and plans to invest between $20 million and $60 million in power generation companies that use renewable resources. The fund had a first close this past September with $170 million and expects a final close in December. CalPERS made the commitment from its $200 million Environmental Technology Program.
The investment committee allocated $180 million to Newbridge Asia IV, a $1.5 billion buyout fund focused on Asian investments in consumer companies, financial services and healthcare. Fort Worth, Texas-based Newbridge Capital is raising the fund, which will make between 10 and 15 investments of between $75 million to $200 million each. The fund had a $1.325 billion closing last month and CalPERS says the firm is targeting a final close “in the coming weeks.” According to Thomson Financial, Newbridge Asia III closed in 2001 with $723 million.
CalPERS committed $50 million to Oaktree Capital Management’s OCM Opportunities Fund VI, which had a final closing of $1.77 billion in October. The fund will invest in distressed middle-market companies in the United States, Europe and Japan. OCM Opportunities Fund V closed in 2004 with $1.2 billion.
Pacific Corporate Group provided due diligence for the Carlyle Group fund and LP Capital Advisors provided due diligence on the Newbridge Capital and Oaktree funds.
In other CalPERS news, the pension recently voted unanimously to oppose the proposed merger between PacifiCare and United Health unless the companies bring back to shareowners for a separate vote the $345 million in executive bonuses that will be paid as a result of the merger of the two HMOs.
The decision, says CalPERS, follows the release of PacifiCare’s proxy statement that indicates PacifiCare management began merger discussions with United Health nearly six months before PacifiCare shareowners were asked to approve a very favorable compensation package for management and the board in the event of a change-in-control of the company.
CalPERS owns approximately 423,100 shares of PacifiCare stock valued at $33 million, and more than 7.2 million shares of United Health valued at $400 million.
CalPERS is the nation’s largest public pension fund with assets of more than $196 billion. The system provides retirement and health benefits to more than 1.4 million state and local public employees and their families.