“This new $200 million allocation is a reflection of CalPERS ongoing commitment to emerging and diverse managers,” says Ted Eliopoulos, CalPERS’ interim chief investment officer, based in Sacramento, California. “Our goal is to generate appropriate, risk-adjusted investment returns by identifying early stage funds with strong potential for success.”
The new allocation will be deployed over four years and is in addition to a $100 million commitment made in 2012. The selection of a manager to head the fund-of-funds will be completed by CalPERS investment staff later in the year.
CalPERS has been investing with emerging managers directly and through fund-of-funds for more than 20 years. In 2012, CalPERS adopted its “Emerging Manager Five-Year Plan: Pathway to the Future,” which provides a strategic framework to guide CalPERS investments and engagement with emerging investment managers.
According to CalPERS, this new total fund approach to emerging manager programs is designed to engage with the emerging manager stakeholder community, strengthen relationships with emerging managers, and improve implementation of emerging manager investment strategies.
CalPERS has nearly $12 billion invested with 395 emerging managers across all of its emerging manager programs. More information is available about the CalPERS emerging manager programs and its five-year plan.