CalPERS Eyes First PE Allocation for $3.5B Judges' Fund

CalPERS Eyes First PE Allocation for $3.5B Judges' Fund

CalPERS said total fund active risk remains below its target range as the pension continues building out its private markets program, which now accounts for roughly 35% of the portfolio. CIO Stephen Gilmore said the gap should keep closing as the fund sources additional private market deals. The board also took a first reading on a policy change that would give the $3.5B Judges' Retirement System II Fund its first private equity allocation. General consultant Wilshire Advisors cautioned that recent returns will be harder to repeat and urged the fund to layer in inflation-protected, hard-asset and uncorrelated strategies going forward.

Among other US allocators, the Dallas Police and Fire Pension System board approved a new strategic asset allocation raising its private markets target to 25% from 18%, with the private equity sub-target climbing to 11% from 6%; and Indiana Public Retirement System committed roughly $646M across five funds spanning real estate, private credit, and absolute return strategies, while shifting a $1.9B international government bond mandate with State Street Global Advisors into a passive State Street US TIPS allocation as part of an ongoing asset-liability study.

On the GP fundraising side, Carlyle Infrastructure Credit Fund II closed at approximately $2.3B, exceeding its $2B target and more than tripling its predecessor; Blue Owl Real Estate Fund VII has raised nearly $8B and is moving toward a $9B hard cap, up from an original $7.5B hard cap; and Goldman Sachs Alternatives raised $11.7B across its latest private equity vehicles, led by a $9.6B close for flagship fund West Street Capital Partners IX.

In people news, Michael Rose was promoted to managing director and head of alternatives at Mutual of Omaha; Jackie de Sanctis joined Arbor Row Capital as head of capital formation from ClearSky; and Eugenie Sibeud joined Amber Road Investors as head of capital formation from CapeView Capital.