University of California doubles strategic allocation to PE

This represents an increase of $1bn, based on the Endowment Pool’s last reported AUM figure of $9.1bn as of 30 June 2016.

The dramatic increase follows an update of the Retirement Plan's Investment Policy Statement in May 2016, which saw the target allocation to private equity increase from 8% to 10%, and the allowable range changed from 4.75-10.75% to 5-15%. This policy revision in 2016 also saw the ceiling for direct/co-investments doubled from a $100m maximum to $200m.

The General Endowment Pool can invest up to $150m in individual partnerships, and up to $100m in co-investments or direct investments.

The University of California has been investing in private equity across its investment funds since 1979, committing $10.6bn to the asset class. Over the 10-year period ending in March 2016, the private equity portfolio has generated a total return of 10.3% net of fees.

Notable funds that the LP has backed include EQT VI, Apollo Investment Fund VIII, and Blackstone Capital Partners VI.

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