Alfie Crooks

The endowment increased its 2026 policy target for private equity, looking to hit a 30% allocation mark in coming years.

While CalPERS has been a net buyer of secondaries in the past, poor distributions from private equity assets in these particular vintage years would cause the LP to look at opportunistic sale processes of certain managers.

The LP is exploring the proposition of offloading the stakes amid a secondaries market with record activity.

The proposals, to be voted on in February, include the recategorisation of certain private equity assets, the removal of sub-asset class benchmarks and the implementation of new sub-asset class targets.

LACERA will be allowed to commit up to 35% of its private equity allocation to secondaries or co-investments, and up to 20% of the allocation to funds of funds.

Pennsylvania Public School Employees’ Retirement System's sale included stakes in funds managed by New Mountain Capital, Apollo Global Management and Platinum Equity.

The portfolio sale included full stakes in assets with vintages of 2013 and older and other partial stakes.

The US pension's investment committed noted the global secondaries market is a more intriguing opportunity after deal volume hit a record in the first half of this year.

The decision comes as part of ERS Texas’ continued commitment to the private equity asset class, bumping its fiscal year 2024 target up $50m from last year’s $600m targeted commitment.

The new policy would let ACERA’s staff make the decision to roll existing assets or portfolios into continuation funds if that falls in line with ACERA’s financial consultant’s recommendation.