LPs

Musicco will step down at the end of September after serving a little more than a year as CIO, according to a CalPERS press release.

Private equity made up 21% of all CAAT assets in 2022, up from 9% four years ago, putting the mid-sized system in the same league as its largest global peers.

The $235bn pension system plans to scale direct investing with both existing and new GP relationships.

The system’s investment staff may expand target ranges, among other tweaks, as its cashflow needs change.

With sluggish fundraising and GPs often desperate for capital, LPs are in a stronger position to demand certain concessions that may have been unworkable in the bull market years.

On accelerated monitoring fees and indemnities, regulators discover they have had the power all along – bad news for those who would have challenged the relevant initial proposals from the SEC in court.

New Mexico’s results, along with recent private company data, suggest there may be a light at the end of the tunnel for LPs awaiting cash returns and liquidity.

The pension system’s private equity portfolio has a negative cashflow of $1.1bn.

Much of the debate boils down to the balancing act of more transparency across private funds versus increased expenses that will result from new requirements and their potential ramifications.

The pension system is looking to increase its annual private equity commitments to co-investments.