Saturday, 23 August 2014
Last updated 1 day ago
Apr 20 2010 | 12:02pm ET
The nation’s largest public pension fund has struck a sweetheart fee deal with private equity giant Apollo Global Management.
The New York-based firm has agreed to cut the fees charged to the California Public Employees’ Retirement System by $125 million over the next five years, the two sides said in a joint statement. In return, CalPERS has agreed to fund its existing capital commitments to Apollo, which total $943 million in uncommitted capital.
CalPERS has a total of $4.3 billion in commitments to Apollo, more than $3 billion of which has already been committed. New York-based Apollo has more than $53 billion in assets under management.
In addition to the fee breaks, Apollo has also pledged not to use placement agents. The firm will give CalPERS a quarterly certification that it has neither used nor paid placement agents to win business from the $200 billion pension.
The fee reductions will come from $2 billion in separately-managed fixed-income accounts that Apollo manages exclusively for CalPERS, which owns a 9% stake in Apollo.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note