CalSTRS Changes Alts. Rules

Jul 20 2007 | 10:47am ET

The $170 billion California State Teachers Retirement System has changed the rules governing its alternative investments portfolio to allow for direct investments—which are those made outside of a limited partnership—in private equity funds. Previously, only co-investments in were allowed.

The new rules also scrape geographic limitations for co-investments, which previously were limited to the United States, Canada, the United Kingdom, and Continental Europe. However, nothing was included in the rules allowing for hedge fund investments.

“We continue to not have a hedge fund program, and it is not anticipated that we will make any changes along that route,” said spokeswoman Sherry Reser. She added that there are no timelines to implement any changes, but that the revised rules give the investment staff the authority to make changes where they see fit over the long-term.

CalSTRS’ private equity portfolio represents 6% of the pension fund’s assets, or $11 billion.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...