CalPERS Commits $10.8B to Private Markets in Q2

The $588 billion California Public Employees’ Retirement System (CalPERS) deployed $10.8 billion into private markets during the second quarter, with credit strategies receiving the largest share at $4.85 billion, followed by $4.5 billion to private equity and $1.5 billion to real assets. 

Ares Management captured the top allocations, including $1.6 billion for Ares Special Opportunities Fund III, which targets distressed debt, and $750 million to Ares SME II Co-invest Pool. In private equity, the largest ticket was to Golden Spruce Capital’s GSC I, a lower-middle-market buyout strategy focused on companies with enterprise values of $10 million to $100 million. 

CalPERS’ climate-aligned investing continues to scale, with its Climate Solutions portfolio now nearing $60 billion, more than halfway to its $100 billion target. Recent climate-focused commitments since mid-2024 include allocations to TPG Rise Climate, West Street Climate Credit, Generation IM Sustainable Private Equity Fund II, B Capital Climate Fund I, Copenhagen Infrastructure Partners V, and Brookfield Global Transition Fund II-B. 

Real assets commitments totaled $1.5 billion, led by $500 million to Carlyle Realty Partners X, a $9 billion fund closing in August that will focus on residential, industrial, and self-storage assets while avoiding office, hotel, and retail. 

As part of its continued expansion in real assets, CalPERS is recruiting an infrastructure investment officer to source and underwrite deals across funds, co-investments, and separate accounts, and support portfolio oversight.