TLDR:
CalPERS plans to increase its private equity allocation from 13% to 17%, with a focus on venture capital and growth funds. This move is expected to benefit VCs.
Article Summary:
California Public Employees’ Retirement System (CalPERS) is looking to boost its private equity allocation from 13% to 17%, which will involve investing more heavily in venture capital and growth funds. This shift in strategy is expected to benefit venture capitalists, as CalPERS, being one of the largest pension funds in the U.S., will be increasing its investments in this sector. The move comes as part of CalPERS’ efforts to diversify its investment portfolio and generate higher returns. The plan to focus on private markets, specifically venture capital, highlights the fund’s confidence in the potential for growth and returns in this area.
CalPERS’ decision to increase its private equity allocation aligns with a broader trend of institutional investors looking towards alternative assets for higher returns in a low-interest-rate environment. The move also reflects a growing interest in venture capital as a key driver of innovation and growth in the economy.
In conclusion, CalPERS’ big push into private markets, particularly venture capital and growth funds, is expected to have a positive impact on VCs, as the pension fund plans to increase its investments in these sectors. This strategic shift reflects a broader trend of institutional investors seeking higher returns through alternative assets, and underscores the growing importance of venture capital in driving innovation and economic growth.
