CalSTRS Looking for Some Private Equity Assistance

December 21, 2007 ( - The California State Teachers' Retirement System (CalSTRS) has launched a search for independent fiduciaries for its Private Equity Proactive Portfolio.

The independent fiduciaries will be expected to conduct in-depth analysis, background checks, and due-diligence reviews of prospective partnerships that have been submitted to CalSTRS by its fund-of-fund managers, Banc of America Capital Access Fund and the New and Next Generation Management Fund, managed by INVESCO Private Capital Inc.   The fiduciaries will make recommendations to CalSTRS investment staff regarding the prospective partnerships under review in domestic underserved and emerging markets.

Task List

CalSTRS, which has $14.7 billion in private equity investments as part of its $174 billion portfolio at November 30, 2007, wants those fiduciaries to:

  • screen partnerships,
  • make recommendations,
  • help investment staff negotiate with prospective partners for the CalSTRS Private Equity Proactive Portfolio.  

No more than five firms will be selected to serve as independent fiduciaries for the CalSTRS Private Equity Proactive Portfolio.   The Private Equity Proactive Portfolio operates within CalSTRS’ Investments Executive Unit.

The final filing date for proposals is February 5, 2008 . The request for proposals is available for viewing on the CalSTRS website at .

The California State Teachers’ Retirement System is the second-largest public pension fund in the United States. It administers retirement, disability, and survivor benefits for California’s 813,000 public school educators and their families from the state’s 1,400 school districts, county offices of education, and community college districts.