CalPERS Channels $24B Into Private Markets

California Public Employees’ Retirement System deployed more than $24 billion in new and expanded investment mandates during the third quarter of 2025, underscoring the pension giant’s continued push into private markets. 

The $605 billion Sacramento-based retirement system now allocates roughly 32% of its portfolio to private markets, where officials say there remains room for additional capital deployment. Private equity has been a standout performer, generating absolute returns above 11% across all trailing periods of one year or longer, while infrastructure has delivered the second-strongest long-term performance among private market strategies. 

Private equity accounted for the largest share of new commitments, totaling $11.9 billion across funds and co-investments. As of January, the CalPERS private equity portfolio had grown to approximately $111 billion. 

Among the largest allocations was an $850 million commitment to Bear Coast Ventures Fund from General Catalyst, which focuses on venture investments in early-stage startups. 

The pension fund also expanded its private credit program with nearly $6 billion in new commitments, following more than $18 billion in credit investments earlier in the year. The largest allocation went to the OHA Senior Private Lending Fund (OLEND) managed by Oak Hill Advisors, with two commitments of roughly $1.3 billion each. 

In real assets, CalPERS deployed $5.7 billion across infrastructure and real estate, bringing the bucket to more than $77 billion. GI Partners received $1.5 billion across two commitments for data‑infrastructure strategies, while two $310 million investments went into niche opportunistic positions that appear to be insurance‑linked securities, part of an $866 million opportunistic program. 

Real assets now account for more than $77 billion within the CalPERS portfolio.