Calpers generates strong returns from PE programme

The pension fund's entire portfolio generated an 8.6% return during the time period, with returns in private equity and infrastructure outperforming other asset classes, and infrastructure yielding the highest returns at 20.6%. 

"I am pleased we were able to exceed our expected rate of return based on our strong performance in the private and public equity portfolios," said Ted Eliopoulos, Calpers chief investment officer.

The pension scheme has a current exposure of 8% to private equity investments, though it plans to allocate 10% of its portfolio to the asset class. It also recently announced a new strategy focusing on direct private equity investments. "Calpers Direct", as the strategy is known, consists of two funds: one focusing on late-stage investments, and the other on long-term investments in established companies.

The funded status is an estimated 71% according to 2017-2018 preliminary fiscal returns. It has recorded a 3% increase compared to the previous year, and the estimate is based on a 7% discount rate.

Eliopoulos recently announced he will leave the fund by 2019, as he is relocating to New York for family reasons. The fund started seeking a new CIO in May.

Calpers has recently committed $366m to Carlyle Europe Partners V, $415m to Bridgepoint Europe VI, and $600m to Carlyle Partners VII.

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