CalPERS retains Meketa as system’s PE consultant

The nation’s largest pension system stays with Meketa as the reshaping of its private equity program takes hold.

The nation’s largest public pension system, CalPERS, decided to stick with its private equity consultant, Meketa, as the system continues its massive revamp of the program.

A CalPERS subcommittee selected Meketa to continue as private equity consultant at its April 19 meeting. Buyouts watched a broadcast of the meeting. Meketa has worked in the role since 2017.

Subcommittee members interviewed Meketa and Wilshire Associates, the other finalist for the position, before making their decision. Meketa proposed $3.5 million in fees for five years, while Wilshire offered $3.37 million in fees over the same time period.

Meketa managing partner Judy Chambers addressed the system’s history with private equity.

“The portfolio’s leadership and strategy changed many times over the years, which led to stranded investments and concerns from some market participants. Now, the new CIO and managing director of private equity both have very strong private equity backgrounds and experience, which will lead to consistent execution and interest from high-quality managers,” Chambers said.

Subcommittee members unanimously approved renewing Meketa’s role, stating its representatives did a better job discussing specifics related to the system’s private equity program.

Wilshire was selected to retain its role as the system’s general fund consultant. Meketa was also named as the consultant for CalPERS’s private debt, real estate and infrastructure programs.

CalPERS is revamping its private equity program by upping its allocation to the asset class, naming a new director of private equity and indicating its intent to increase direct investing and lending efforts.