CalPERS paid $3m in secondaries fees in 2015-16

The pension has more than halved the amount it paid in management fees and carried interest to secondaries funds over the last fiscal year.

California Public Employees Retirement System (CalPERS) paid $3.3 million in management fees and carried interest to private equity secondaries funds during fiscal 2015-2016, according to documents from the pension’s 14 November investment committee meeting.

The US’s largest public pension had ongoing investments with at least nine secondaries funds during the 12 months to 30 June including vehicles managed by Coller Capital and Lexington Partners.

Fees paid to secondaries funds accounted for 0.4 percent of total management fees and carried interest related to private equity during the period.

For the 12 months to December 2014, CalPERS paid $6.5 million in fees and costs to secondaries private equity funds, representing about 1.5 percent of total fees and costs related to private equity, according to its comprehensive annual investment report published in January. The figure does not include carried interest, which the pension did not disclose for the period.

CalPERS paid $206.5 million in management and partnership fees to 118 funds that disclosed their data among all 408 private equity funds during the period, around half the $414.1 million it paid during fiscal 2014-2015, according to a private equity annual program review document prepared for the meeting.

The pension paid $539 million in carried interest to these funds, based on data from the 118 that supplied data to CalPERS. More funds disclosed figures for their management fees than for their carried interest.

Here is a link to the full list of funds CalPERS paid fees to during the previous fiscal year.