CalSTRS Expands Capital Access Private Equity Program
A larger commitment to smaller, new and emerging managers in underserved domestic markets.
West Sacramento, CA – The California State Teachers’ Retirement System today announced the expansion of its relationship with Banc of America Merrill Lynch Capital Access Fund into underserved inner-city and rural markets.
CalSTRS is committing $100 million to its fourth BAML fund since 2003, targeting underserved domestic markets. CalSTRS has the option of increasing its commitment to $200 million within four years.
“This fund extends new capital into traditionally underserved communities in the inner cities and rural areas, during a time when the capital that small businesses need in order to grow is in short supply,” said CalSTRS Chief Investment Officer Christopher J. Ailman. “These opportunities, we believe, will yield long-term value that will benefit the retirement fund and add to the financial security of our members.”
The fund is part of a private equity portfolio exceeding $1.135 billion, known as the Proactive Portfolio. The Proactive Portfolio includes the urban and rural program, an emerging manager program and other innovative strategies. The Proactive Portfolio encompasses a broad range of industries, including media and entertainment, consumer products and retail, manufacturing and distribution, technology and telecom, business and financial services, and healthcare.
Qualified general partners seeking more information can contact Guillermo Borda of BAML Capital Access Funds at (310) 860-2542 or email@example.com.
As a division of Bank of America Merrill Lynch, BAML is one of the oldest private equity investors in underserved markets, with investments in funds focusing on:
- Companies owned or managed by, or targeted to, women or ethnic minorities;
- Companies located in or employing residents of low- and moderate-income areas; and,
- Companies located in areas — urban or rural — with limited access to investment capital.
The California State Teachers’ Retirement System, with a portfolio valued at $131.1 billion, is the second-largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 845,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.