According to a press release, the program has been approved for real estate managers who have less than $1 billion of assets under management. The term of the new Emerging Manager Program for Real Estate will be five years, though CalPERS will review the progress and outcome of the program after two years.
“Our top goal is to achieve appropriate risk-adjusted earnings,” said Rob Feckner, CalPERS Board President. “We also hope to find investment opportunities in underserved sectors for sound long-term returns and to increase diversity among our pool of real estate investment managers.”
According to the announcement, CalPERS will seek managers who have no more than three prior commingled funds or separate account investment vehicles. “The pension fund will select from its current team of seasoned successful investment managers to oversee the selection of talented new managers, provide mentoring, and back office support,” according to a press release. The program will focus on managers and assets in urban California markets.
Approximately 20 to 50 firms are in the universe of emerging managers who might qualify for the new program, according to Crosswater Realty Advisors, which assisted CalPERS in research, design and development of the Emerging Manager Program.
CalPERS is the nation’s largest public pension fund with approximately $224 billion in market assets.
Investment proposals can be submitted at http://www.calpers.ca.gov/index.jsp?bc=/investments/investment-proposals.xml
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