Alfie Crooks
The pension plan is hoping to reduce its allocation to buyout assets, increase its liquidity and cull 'inactive' GP relationships.
The pension fund is set to make its second cut to its PE target in four years, with the LP suggesting it may make secondaries sales in specific scenarios.
Hark Capital has set a $750m target for its fifth fund, representing a 50% increase on its previous fundraising target.
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.