CalPERS commits $500m to Blackstone, $100m to PAG

The $238 billion pension fund said the Blackstone Tactical Opportunities Separate Account was an opportunity "to target global investment opportunities in areas of market, regulatory, or other forms of dislocation", according to details provided by the fund to Reuters on Wednesday.

The news comes after Blackstone received $1.8 billion from the New Jersey Division of Investment last December. The $66.2 billion pension fund has brought its total commitment to $2.5 billion since then.

Last November, KKR and Apollo Global Management also received $3 billion from the Teacher Retirement System of Texas, along with the responsibility of managing its capital across a variety of private markets' asset classes via special accounts.

While private equity firms have been scaling up their capital by partnering with large pension funds to invest in special accounts across their investment funds, some investors are seeking to receive a break on management fees in exchange for major commitments.

CalPERS will also be committing $100 million to PAG Asia I LP, a fund that not only focuses on buyout and growth equity investments in Greater China, but also in Japan, South Korea, and other Asian countries.

Another $400 million will be distributed to Cerberus Institutional Partners, whose investments primarily fall into distressed private equity and distressed securities, including distressed corporate debt and mortgage investments.

The pension fund is also committing $100 million to Credit Suisse-Domestic Emerging Manager.

 

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• Topics
• North America
• Greater China
• California Public Employees' Retirement System (CalPERS)
• PAG
• The Blackstone Group
• KKR
• Apollo Global Management