CA Plans Gear Up for Busier PE Program in 2004

December 29, 2003 ( - 2004 promises to be more of a private equity kind of year - at least for two California pension plans.

The San Jose Business Journal reported that the San Francisco Employees’ Retirement System is set for a major private equity ramp up during the coming year – compared with its solitary 2003 commitment for a deal approved in 2002.

According to the newspaper, the fund is set to allocate as much as $150 million next year with the bulk likely going to buyout firms. Venture capital makes up 30% of the fund’s private equity allocation.

Meanwhile, the Los Angeles County Employees’ Retirement Association also has put up $600 million to commit to private equity next year, after making just one commitment this year. The fund wants to invest in chunks of $30 million to $60 million.

The two may not be able to invest as much as they’d like since 2004 is poised to be a big fundraising year, with as many as 40 known buyout and venture firms raising new funds, according to industry reports.