CalPERS Deployed Over $14B Across Private Markets in Late 2025
California’s largest public pension fund ramped up its private markets activity at the end of 2025, committing more than $14 billion across dozens of transactions as strong performance in alternative assets continued to reshape the portfolio.
Meeting materials prepared for CalPERS’ June investment committee show the $598 billion retirement system deployed capital across nearly 70 mandates during the fourth quarter, spanning private equity, private credit, infrastructure, real estate and insurance-linked securities. The activity reflects a continued emphasis on co-investments, secondary transactions and strategic partnerships with established managers.
The strongest contributor to returns remained private equity, which generated annualized gains exceeding 25% through March 31 and grew to more than $119 billion in assets. The portfolio now represents 32.01% of total fund assets, exceeding the pension system’s current 30% policy ceiling. Investment staff have proposed adjustments to the policy framework that would allow the allocation to remain above the existing limit.
Private equity accounted for the largest share of fourth-quarter commitments, attracting approximately $9.5 billion in new allocations. In addition to a series of co-investments, CalPERS directed $1.4 billion to secondary market strategies managed by Carlyle AlpInvest, Newbury and Pantheon, highlighting continued institutional demand for seasoned private equity assets.
The pension fund also expanded its exposure to real assets. A $2 billion commitment to GIP Redwood Co-Invest represented the largest infrastructure-related allocation during the quarter and was part of roughly $3 billion committed across five real asset mandates.
Private credit, while still underweight relative to long-term targets, continued to gain traction. The asset class returned 13.2% over the past year and received $750 million of additional commitments.
The investment activity helped drive CalPERS’ total fund return to 14.1% through March, reinforcing the growing role of private markets in supporting the retirement system’s long-term objectives.
