CalPERS Directs $12.7B to Private Markets in Q1
The California Public Employees’ Retirement System committed roughly $12.7 billion to private markets during the first quarter, directing three-quarters of the capital to private equity as the California pension continued expanding its alternative-investment portfolio.
CalPERS allocated $9.4 billion across private equity primary funds, co-investments and venture capital vehicles. Credit strategies received $2.3 billion, while $950 million went to real estate and infrastructure funds.
Goldman Sachs Asset Management received the largest manager-level allocation, collecting $2 billion across its West Street credit strategies. That included $1 billion for West Street Strategic Solutions II, a special-situations vehicle that can provide capital to companies facing complex financing or liquidity needs.
The commitments bring CalPERS’ investments across Goldman’s West Street series to nearly $12 billion over six years. That relationship includes a $2 billion commitment to West Street Strategic Solutions I in 2020.
The quarter’s largest private equity commitment was $1 billion to Grand Isle LP, whose manager was not disclosed. Thrive Capital received commitments totaling $1.2 billion, while health care-focused Patient Square Capital collected $558 million and Cerberus Capital Management received $491 million.
Ares Management secured $800 million across two real asset vehicles. One was Ares U.S. Real Estate Fund XI, which closed in April at an increased $3.1 billion hard cap. Including related vehicles and the manager’s commitment, the U.S. value-add strategy raised about $3.5 billion.
The fund targets logistics, multifamily, self-storage and adjacent sectors that Ares describes as benefiting from long-term demographic and economic shifts.
CalPERS managed about $656 billion when the commitments were reported. The pension returned a preliminary 14.8% for the fiscal year ended June 30, lifting its estimated funded ratio to 85%. Private equity returned 17%, and CalPERS said approximately $47 billion invested under its revamped private equity strategy since 2022 had generated a 35.8% return through early 2026.