CalPERS Commits $6.85B to Alts

The California Public Employees’ Retirement System (CalPERS) made a total of $6.85B in new allocations across eight alternative investment funds during the second quarter, according to materials for its upcoming November 18 board meeting.

In its quarterly update report, the pension disclosed committing $1B and $500M, respectively, to emerging market funds Connor Clark & Lunn Emerging Markets Equity and Lazard Emerging Markets.

Four private credit strategies also received allocations from the pension, namely two series of opportunistic funds in strategy Sixth Street Madrone Strategic Holdings I, with $300M for series 1 and $1.2B for series 2; co-investment vehicle West Street LP V Co-Investment Partners with $350M; and Ares Senior Direct Lending Fund III with $1B. 

Lastly, the pension committed $2B to middle-market buyout Lincoln Plaza Fund and another $500M to global private infrastructure fund DigitalBridge Partners III.

CalPERS said that as of the close of the third quarter it had three private credit proposals in due diligence and 12 under review; 17 private equity proposals in due diligence and 16 under review; one infrastructure proposal in due diligence and four under review; and five real estate proposals in due diligence and 16 under review. It also had seven opportunistic investment strategies in due diligence and another seven under review. On the public asset side it did not have any global equities or fixed income proposals in due diligence but had eight and 12, respectively, under review. 

The pension said that across all asset classes it has committed to 46 investments through the first three quarters of the year, is in the process of closing on another 30, and passed on 70 proposals.

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