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The California Public Employees' Retirement System (CalPERS) will hold a global solicitation process for its new Transition Manager Program that will seek investment proposals from eligible mid-size external investment managers. The solicitation will open in July 2017.
The Transition Manager Program will make up to $7 billion in commitments by the year 2020. Commitments range from $50-$300 million in the Real Estate and Private Equity programs, and $500 million to $1 billion in the Global Equity program. This is in addition to the new commitments to CalPERS' Emerging Manager Programsof up to $4 billion during the same period. The goal is to identify and place up to $11 billion in new commitments with qualified managers by 2020.
The announcement will be made formally as part of the Global Entrepreneurship Summit (GES) 2016, hosted by President Obama, from June 22-24 at Stanford University.
"Our objective for investing with emerging and transition managers is to generate appropriate risk-adjusted investment returns by identifying early funds with strong potential for success; accessing unique investment opportunities that may otherwise be overlooked; and cultivating the next generation of external portfolio management talent," said Laurie Weir, Investment Director for Targeted Investment Programs, who will attend the GES. "We hope this advance notice will give managers time to learn more about CalPERS' programs and prepare their proposals."
Transition managers are firms that have demonstrated early stage success, either within CalPERS' Emerging Manager Program or elsewhere. Started in June 2015, this program provides a path of growth and opportunity for managers to eventually build their firms to a size large enough to compete for entry into CalPERS’ pool of larger, established managers. Emerging managers are generally defined as newly formed or relatively small investment firms.
To learn more, view the CalPERS' Targeted Investment Programs Update (PDF).
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.8 million members in the CalPERS retirement system and administers benefits for nearly 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $294 billion. For more information, visit www.calpers.ca.gov.
