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CalPERS approves $809m in re-ups

The public pension has committed to Carlyle’s fourth Asian growth fund, Welsh Carson’s 11th buyout fund, First Reserve’s 12th energy fund and Clessidra's second Italy-focused fund. Together these four funds are targeting more than $22bn.

The $233 billion California Public Employees’ Retirement System – currently coping with an over-weighted private equity programme due to public market declines as well as slowed realisations that have thrown its allocation formulas off-kilter – has approved commitments totalling $809 million to four managers with whom it has existing relationships.

The largest commitment of $300 million was made to First Reserve Corporation’s 12th energy buyout fund, which CalPERS meeting minutes detail as targeting $15 billion. CalPERS said it has committed slightly more than $1 billion to the energy investor’s funds, which represents 1.7 percent of the pension’s private equity portfolio.

The Carlyle Group’s fourth Asian growth fund, which is targeting $1 billion, received a $150 million commitment from CalPERS. The pension has committed a total of $3.5 billion to Carlyle funds, or 7.1 percent of its private equity portfolio. Last month, the pension disclosed commitments of $300 million each to Carlyle’s third Asian buyout fund, which is raising $3.5 billion, and to Riverstone/Carlyle Renewable & Alternative Energy Fund II, targeting $4 billion.

Italy’s Clessidra Capital Partners received a €150 million commitment for its second buyout fund, targeting €1.5 billion. CalPERS has €200 million committed to the 5-year-old firm, representing 0.6 percent of its private equity portfolio.

The public pension also committed $125 million to Welsh Carson Anderson & Stowe’s 11th fund, which is raising $4.5 billion for deals in the healthcare and business and information services sectors. CalPERS has a total of $601 million committed to the US firm, representing 1.2 percent of its private equity portfolio.

CalPERS said last month that its actual allocation to its alternative investment program had reached 10.5 percent, above its target allocation of 10 percent but still within the target range of 7 percent to 13 percent. Earlier this summer, CalPERS staff said it may have to alter its allocation policy because of a steep drop in its overall assets under management.