VRS Commits $1.5B+ to Alts; CalPERS PE Climbs Peer Rankings

Virginia Retirement System disclosed a broad slate of new investments spanning real assets, private equity, and credit. Highlights include a $229M farmland separate account managed by International Farming Corporation, replacing a terminated predecessor mandate, commitments to two EQT vehicles in energy and infrastructure, and a $400M commitment to Ares Pathfinder Fund III, which closed at its $8.5B hard cap. VRS also hired PIMCO to manage a $500M multi-strategy custom mandate and launched an internally managed active US small-cap equity strategy seeded with $425M, and staff recommended a FY 2027 target allocation reducing private equity by one percentage point to 15%.

At its recent meeting, CalPERS said its private equity program has climbed from near last to first among large domestic public pension plans on a three-year basis since a November 2022 strategy overhaul, delivering a 12.8% three-year return – 320 basis points ahead of second-place Minnesota State Board of Investment. The program committed an average of $15.8B per year across four consecutive fiscal years and hit its 40% co-investment target, generating an estimated $2.5B in annual fee and carry savings.

Fundraising updates included Clearlake Capital Group closing Clearlake Capital Partners VIII and related vehicles at a combined $14.8B; Align Capital Partners hitting hard caps on two simultaneous vehicles – Align Capital Partners Fund IV at $770M and Align Collaborate Fund II at $375M; and Juggernaut Capital Partners launching Juggernaut Diversified Sports, a dedicated sports investment platform created in partnership with retired footballer Gareth Bale.

In people news, Berkeley Endowment Management Company named Tarek Saghir as president and CIO effective August 3, joining from Brandeis University where he has served as CIO since 2022; and Nordea Pension Denmark appointed Søren Thorius Mølhave Andresen as CEO, succeeding Vivian Weis Byrholt.

Read on for all the day’s fundraising news headlines.

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GP stakes — acquiring minority equity interests in alternative asset management firms — has evolved from a niche institutional strategy into one of the most active corners of private markets.

Transaction volume has grown significantly, and the target universe has broadened from household-name platforms to the middle market. And for the first time, wealth channel investors are gaining access through semi-liquid and evergreen vehicles.

Dakota’s new report covers how the strategy works, who the major players are, why GPs sell stakes, and what the return profile actually looks like.

Download the full report →

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