CalSTRS Seeks Fund-of-Funds Private Equity Managers for $100 Million New and Next Generation Managers Program

News release

Sacramento, CA – The California State Teachers’ Retirement System today launched a search for one or two fund-of-funds managers to invest in a $100 million portfolio of private equity new and next generation managers. Final filing date for investment offerings is July 7. A copy of the Private Equity Investment Search document is available in the Investments section of the CalSTRS Web site, www.calstrs.ca.gov.

 

The firm selected will construct, manage and liquidate a private equity fund-of-funds portfolio of new and next generation manager partnership investments. The fund-of-funds manager will have full discretion over the $100 million portfolio.

The portfolio the firm will manage will be diversified over time, geography and private equity sub-asset class to include buyouts, equity expansion and venture capital. The pool of general partners selected by the fund-of-funds manager is expected to reflect the diversity of experienced professionals that have entered the private equity profession in recent years. The new and next generation managers selected by the fund-of-funds manager may be drawn from a broad range of settings, such as private equity, insurance companies, pension funds and investment banking.

New and next generation managers are defined by CalSTRS as existing experienced private equity professionals splitting off from their current partnerships or organizations, young partnerships seeking their second institutional fund and experienced private funds or investors seeking institutional funding for the first time.

The CalSTRS AI portfolio is currently valued at $4.6 billion with committed values of $8.7 billion. The AI portfolio has generated a 16.2 percent compounded annual rate of return since its inception in 1988. The current alternative investment asset allocation is 6 percent within a portfolio of $95 billion. Projections estimate the AI portfolio will grow to $11 billion by 2006, with the domestic portion expected to reach $9.3 billion. The AI portfolio contains direct and co-investments, limited partnerships and secondary interests.

CalSTRS is the nation’s third largest public pension fund and administers retirement, disability and survivor benefits for California’s public school educators in grades kindergarten through community college, serving more than 715,000 members and benefit recipients.


PEIS for New and Next Generation Fund-of-Funds Manager(s)

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For accessible versions of files on this page, contact ADACoordinator@CalSTRS.com.