CalPERS Pockets Almost $700M As PE Fund Closes

Dec 13 2011 | 4:07pm ET

CalPERS has earned a tidy $695 million from its investment in the recently closed GI Partners Fund I.

The California Public Employees’ Retirement System put $500 million into the fund in 2001 as part of a joint initiative between its real estate and private equity programs to invest in technology-related assets. The investment generated a 31% annualized internal rate of return.

“These significant returns are a credit to GI Partners and CalPERS investment professionals’ performance over the past 10 years,” said Joseph Dear, CalPERS CIO, in a statement. “We have a long investing horizon, and the fund’s success is testimony to our commitment to an investment strategy that seeks superior risk-adjusted returns across all asset classes.”

GI Partners is a privately owned firm that invests in operating companies and assets in North America and Western Europe. CalPERS also has commitments of $500 million each to GI Partners Funds II and III, and GI Partners also manages more than $2 billion in assets in CalPERS’ CalEast real estate portfolio.

CalPERS is the nation’s largest public pension fund with approximately $226 billion in market assets.

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