In private equity, the revised policy increases the size of powers delegated to staff for funds, personalized investment accounts, co-investments and secondary purchases. CIO can now commit $4 billion to a personalized investment account, up from $1.9 billion previously; $3 billion to a fund, up from $1 billion previously; $3 billion for secondary market purchases versus $1.7 billion; and $1.5 billion for a co-investment, up from $600 million previously. The investment committee added a new category, secondary sales, with limits of $6 billion for the CIO, $4 billion for the deputy CIO and $2 billion for the chief investment officer.
The investment policy also increases the size of its overall commitment to a single general partner to 15%, from 10% of its total net committed capital to private equity. Any exceptions must be approved by the Investment Committee. In 2014, the committee increased the exceptions approved, bringing the total amount to 15% for three managers, Blackstone, Carlyle Group and Apollo Global Management. CalPERS had $72.3 billion in real assets and $48.8 billion in private equity as of September 30.
Staff will keep the committee “informed” of its investments and get feedback from the committee, Ms Musicco said.
“We don’t want anyone to be surprised at what we’re doing, and we need the full support of the board for some of the needle-moving transactions we’re considering,” Ms. Musicco added.
She said more details would be provided behind closed doors.
Separately, Ms. Musicco announced that CalPERS has hired Drew Hambly as the new Chief Investment Officer and Head of Corporate Governance for the CalPERS Global Equity Team. Mr. Hambly was Executive Director of Global Stewardship for Morgan Stanley Investment Management. Simiso Nzimachief investment officer of global equities had served as chief investment officer and head of corporate governance until his promotion in October 2021. MSIM did not immediately provide information on a replacement.
Also on Monday, the investment committee approved its first report on diversity in investment management mandated by a new California law signed by Governor Gavin Newsom in October 2021 to promote the inclusion of more women and of minority-owned fund managers in asset management. industry. CalPERS committed or invested $481 million with seven emerging managers and $3.2 billion with 12 diverse managers in the first six months of 2022, according to the report. The two categories included investments made directly and through funds of funds, according to the report.