Institution: The California Public Employees’ Retirement System
New CIO: Russell Read
Former CIO: Mark Anson
Assets Under Management: $208 billion
Allocation to PE: 5.1 percent
Following an almost six-month search,
CalPERS has experienced a significant amount of turnover in recent years. Anson had taken the job in 2001 to replace
Read is scheduled to assume the CIO post on June 1. Prior to his new role, Read had served as the deputy chief investment officer for Deutsche Asset Management. Before that he had worked at
His experience has largely been focused on the public markets, with little in the way of direct private equity exposure. A press release issued by the pension noted that Read has spent more than 20 years in investment management “across all asset classes,” but specifically cited his background in “global markets, asset/liability modeling, asset allocation [and] risk management.”
Read’s charge at CalPERS will be to manage the pension’s entire portfolio, which includes equities, fixed income, real estate and alternative assets.
The pension’s Alternative Investment Management Program, headed by
The change at the top comes as CalPERS is undergoing a dramatic makeover in its approach to private equity. At the end of March, CalPERS issued two mandates seeking third-party assistance in simplifying its rambling portfolio. The pension issued one RFI requesting bids to develop a “customized fund of funds” that will give the pension access to distinct market segments such as mid-market, venture and global managers. The second mandate issued was an open call for “one or more third parties” to take over certain partnerships in its portfolio. The pension concluded that the “number of general partner relationships… needed to be reduced to a more manageable number.”
“Leon Shahinian runs the private equity portfolio, and I don’t see any immediate or even future changes in the strategic plan that has been set forth,” Pacheco said.