Private Equity Program
Since inception in 1990 to December 31, 2011, the Private Equity (PE) Program has generated $20.2 billion in profits for CalPERS. Given the young, weighted-average age of the portfolio (5.9 years) this amount will continue to grow as the portfolio matures.
The Private Equity (PE) Program specializes in private equity investments. With over $45 billion of total exposure to this asset class, CalPERS is one of the largest private equity investors in the world. The PE Program's goal is to perform as "the investor of choice" and leverage marketplace opportunities in order to achieve superior risk-adjusted returns. We accomplish this through three investment components - Partnership, Direct, and Fund-of-Funds.
December 31, 2011, is the latest private equity performance information available. At the end of each quarter, the General Partners report on the value of invested capital. They have up to 120 days to provide Limited Partners with financial data, so there is generally a two-quarter "lag" in performance reporting.
As of December 31, 2011, the PE Program had a total exposure of $45.4 billion. The PE Program has contributed $53.0 billion and received distributions of $38.5 billion and had a remaining reported value of $31.6 billion. Of the $38.5 billion in distributions, $20.2 billion represents realized gains. As the portfolio matures and distributions grow, the Program is becoming self-sustaining.
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