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CalPERS launches $1bn portfolio sale – exclusive

UBS has advised CalPERS on a series of secondaries deals dating back to 2007.

UBS is advising the California Public Employees’ Retirement System (CalPERS) on the sale of $1 billion-worth of private equity fund stakes, Secondaries Investor has learned.

The move fits with CalPERS’ long-term goals of reducing the number of general partner relationships on its books and reducing costs.

A source familiar with the transaction said the portfolio includes stakes in about 20 separate funds. The portfolio is US-biased and is a mix of vintage years.

UBS declined to comment. CalPERS declined to comment.

Now led by managing director Philip Tsai, the bank’s secondaries advisory group has advised CalPERS on a series of secondaries transactions. In late 2007 the bank reportedly led the sale of $2 billion-worth of private equity fund interests, followed by another $800 million-worth of stakes in 2011.

Earlier this year CalPERS chief investment officer Ted Eliopoulos told the Financial Times the $300 billion pension would use “every possible lever” to reduce costs. He added CalPERS was hoping to cut the number of private equity managers in its portfolio by more than two-thirds, suggesting the number of relationships could be less than 100.