Calpers signals ‘appetite’ to increase bets on private equity

May 18, 2023 · Calpers, the biggest US public pension plan, is considering bigger bets on private equity despite growing fears that higher interest rates will curb the industry’s returns.

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CalPERS Will Increase Private Markets Investments

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Mar 19, 2024 · Private equity will increase from a target of 13% of the fund to 17% while private debt will increase from 5% to 8%. The private equity strategy has been successfully achieving …

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CalPERS Has $34B Bet On Private Equity, Shifts From Equities

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Mar 19, 2024 · In its latest market survey, CalPERS cut the expected 20-year return on private equity to about 7.9% due to increased financing costs while increasing expected returns for …

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Calpers Raises Bets On Private Equity, Credit Bets In $34 Billion Shift ...

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Mar 19, 2024 · Based on current values, that works out to about $34 billion aimed for private equity and credit, while Calpers plans to pare its exposure to publicly traded stocks and bonds.

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CalPERS Goes Big On Private Equity, Upping Allocation To 40%

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Mar 20, 2024 · California Public Employees' Retirement System (CalPERS), the largest public pension fund in the United States, is making a major move into private equity. On Monday, the …

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Calpers Boosts Private Equity, Credit In $34 Billion Shift (1)

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Mar 19, 2024 · The largest US pension fund is ramping up its exposure to private equity and private credit in a $34 billion bet that the riskier assets will fuel higher returns. The board of the …

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CalPERS Will Increase Private Markets Investments

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CalPERS continues to progress with the private asset strategy begun in 2022. The proposal will increase total private market allocations from 33% of plan assets to 40%. Private equity will …

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Calpers Gambles On Private Equity, Credit In Bold $34 Billion …

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Strategic Overhaul: Betting Big on Private Markets At the heart of Calpers’ new investment strategy is a significant increase in allocation to private equity and private credit, with targets …

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Calpers To Increase Investments In Private Equity - The Wall Street …

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Mar 19, 2024 · The California Public Employees’ Retirement System said its board had approved a proposal to increase total private-market allocations to 40% of plan assets from 33%.

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Calpers To Invest More Than $30bn In Private Markets - Financial …

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Mar 19, 2024 · Calpers, the US’s biggest public pension plan, is to increase its holdings in private markets by more than $30bn and reduce its allocation to stock markets and bonds in an effort …

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CalPERS To Boost Allocation To Private Equity And Private Credit At …

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In the first six months of 2022, CalPERS lost tens of billions from investments. CalPERS increased allocation to private equity from 8% to 13%, private debt from 0% to 5%, real assets …

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FAQs about Calpers signals ‘appetite’ to increase bets on private equity Coupon?

Will CalPERS increase its bet on private equity?

As part of the move, Calpers will increase its bet on private equity from 13 per cent to 17 per cent of its portfolio, although this could potentially rise as high as 22 per cent. At the same time, it is pulling back from investing in stock markets, with its allocation to equities set to fall from 42 per cent to 37 per cent of its portfolio. ...

How will CalPERS' private asset strategy change in 2022?

CalPERS continues to progress with the private asset strategy begun in 2022. The proposal will increase total private market allocations from 33% of plan assets to 40%. Private equity will increase from a target of 13% of the fund to 17% while private debt will increase from 5% to 8%. ...

How much will CalPERS spend on private equity & credit?

It also approved increasing private credit to 8% from 5%. Based on current values, that works out to about $34 billion aimed for private equity and credit, while Calpers plans to pare its exposure to publicly traded stocks and bonds. ...

How much is CalPERS worth?

The most recent (PDF) figures available for the fair value of the CalPERS private equity and private debt asset classes were $68.7 billion and $12.3 billion, respectively. Just last year (PDF), values for private equity and private debt stood at $63.5 billion and $10.9 billion, respectively. ...

Will CalPERS' private equity portfolio be reviewed?

The review of Calpers’ $52bn private equity portfolio will take place nearly nine months after Nicole Musicco, who started as chief investment officer last year, said a decision to put the pension plan’s private equity programme on hold for a decade between 2009 and 2018 had cost it up to $18bn of returns. ...

Why did CalPERS expand its portfolio in 2021?

In 2021, Calpers’ board approved an expansion into private assets including private equity, real assets and private debt, from 21 per cent to 33 per cent of the portfolio, and gave itself the ability to borrow money to invest in assets that would help diversify its holdings. ...