The California Public Employees鈥� Retirement System (CalPERS) is looking to invest up to $11bn with 鈥榯ransition鈥� investment managers by 2020.
The move is an extention of the US pension fund鈥檚 , whereby the US pension fund invests in newly formed or relatively small companies.
Transition managers are emerging managers that have 鈥渄emonstrated early stage success鈥� either wihin the programme or elsewhere, CalPERS said.
The US pension fund will hold a global solicitation process 鈥� starting in July next year 鈥� that will seek investment proposals from mid-size external investment managers.
Real estate is included in the programme. CalPERS plans commitments in the range of $50m to $300m for transition real estate managers.
Laurie Weir, investment director at CalPERS, said: 鈥淥ur 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.
鈥淲e hope this advance notice will give managers time to learn more about CalPERS鈥� programs and prepare their proposals.鈥�
