CalSTRS seeks regional PE advisers

  • RFP seeks up to 3 advisers, focused on Americas, Europe/Mideast, Asia
  • CalSTRS has 13 pct target allocation to PE
  • Pension intends to award three-year contracts

California State Teachers’ Retirement System wants to hire up to three private equity advisers, each focused on fund investments in a specific geographic region.

CalSTRS, which has $223.8 billion in assets and a 13 percent target allocation to PE, is looking for expert advice related to fund investments in three regions: North and South America; Europe, the Middle East, and Africa; and Asia/Pacific and Australia, according to a recent request for proposals.

The system may hire the same adviser for more than one geographic region, but it expects separate proposals for each region. Responses to the RFP are due April 15.

CalSTRS wants the PE-program advisers to able to provide advice and recommendations for alternative-asset classes, including private equity, hedge funds, infrastructure projects, commodities, natural resources, cross-asset class investments, special mandates and other alternative investments.

The adviser chosen for the Americas region will be designated CalSTRS’s primary adviser and will have responsibilities throughout the system’s entire $20.4 billion PE portfolio.

CalSTRS’s current portfolio is weighted toward North America, which accounts for 75 percent of the pension’s PE commitments, with Europe accounting for 20 percent and Asia 5 percent.

Within its PE portfolio, CalSTRS has a 69 percent target for buyouts, 15 percent for debt-related PE, 7 percent for venture, 5 percent for core private equity and 4 percent for PE special mandates.

The program manager will assist CalSTRS’s 23-member in-house PE staff, providing support on partnership selection, portfolio monitoring, and other tasks.

CalSTRS intends to award three-year contracts through the RFP, with up to two one-year extension periods.

CalSTRS did not immediately respond to a request for the names of its current PE regional advisers.

Action Item: View the full RFP here