The California Public Employees' Retirement System puts about 10% of its total pension fund into private equity investments, yielding about $4.1B for CalPERS during the fiscal year that ended June 30.
In addition to fees charged by private equity fund managers, profit-sharing agreements earned the fund's private equity partners about $700M. Private equity has the highest net returns in CalPERS' portfolio, at an average of 11% since the fund started investing in private equity in 1990, CIO Ted Eliopoulos (above) says.
The fund has earned $24.2B in profit from private equity since 1990 and about $3.4B in profit sharing for private equity partners. The pension's total fund market value is around $295B.
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