California Public Employees' Retirement System is considering different structures that would enable it to manage some private investments in-house.Â
The California Public Employees' Retirement System may elect to move in-house some of its $30 billion in private equity exposure currently managed externally, the pension's chief investment officer, Ted Eliopoulos, said during a recent Bloomberg TV interview. Â
Asked why CalPERS couldn't simply follow in the footsteps of sovereign wealth funds or Canadian pensions that have in-house investment teams and foreign offices, Eliopoulos noted that governance for US public pensions limits the ability to open foreign offices and compete with private sector pay. Â
“We're looking at other ways we could achieve some of those [direct investing] objectives without going to a completely direct model,” he said, noting CalPERS was investigating whether it could invest in a special purpose vehicle to carry out an investment strategy.
The $302 billion US pension plan has a 10 percent target allocation to real estate that currently stands at 9.3 percent.
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