CalPERS Severs Ties With PCG, Adds Capital Dynamics To Roster

Oct 11 2010 | 3:17pm ET

The California Public Employees’ Retirement System is severing its ties with Pacific Corporate Group as part of the pension fund’s ongoing strategic review of its private equity program and investment partners.
 
Aviva Capital, a former joint venture partner with PCG, will continue to manage over $1 billion of invested and committed capital in two emerging markets investment vehicles for CalPERS – Global Opportunities Fund 1 and 2 – under an independent investment team, and will be announcing a new name for the company in the near future.

CalPERS has also tapped Capital Dynamics to take over management of its Clean Energy & Technology fund, which was launched in 2007 and previously managed by PCG.

“We’re pleased to continue to support the Aviva team and are confident in their capability to succeed as an independent manager,” said Joe Dear, chief investment officer of CalPERS. “Aviva has demonstrated an ability to find promising investments in emerging markets and we are excited about the prospect of continuing to build CalPERS exposure in these regions.
 
“We also welcome Capital Dynamics to the CalPERS portfolio,” said Dear. “This new relationship and the repositioning of the assets with the new independent teams is part of the systematic restructuring of our private equity program to reposition our assets and focus on improved performance, accountability and transparency with our partners.”

The pension fund exercised “no fault rights” and enlisted Capital Dynamics to step in and manage the Clean Energy & Technology Fund – a $480 million vehicle comprised of partnerships and co-investments in the cleantech sector. CalPERS selected the firm from its private equity spring-fed advisor pool following a thorough review of potential candidates, according to the pension fund. Capital Dynamics will receive no new allocation in the Clean Energy & Technology fund but may make follow-on investments from uncommitted capital.
 
CalPERS will retain a relationship with a part of the team formerly known as PCG Corporate Partners to manage the remaining investments in the two Corporate Partner vehicles. Both funds are in the harvest period, and the newly independent team known as KMCP Advisors, based in San Diego, California has been tasked with exiting the remaining investments over the next few years.

The CalPERS Alternative Investment Management program returned 30.9% on investment for the 12 months ending March 31. The asset class has a total market value of approximately $28 billion.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.