CalSTRS Commits $5.2B to Alternatives in First Half of 2025
The $370 billion California State Teachers’ Retirement System (CalSTRS) committed $5.2 billion to alternatives in the first half of 2025, spreading allocations across private equity, real estate, and its collaborative strategies portfolio.
The system, which reported an 8.48% return for the year ending June 30, directed the largest share—$2.6 billion—to its $55.6 billion private equity program. Notable commitments included $400 million each to Blackstone Asia III and KKR North America XIV, alongside additional capital to Blackstone Energy IV and several co-investments such as Citrin Cooperman ($228 million), Jersey Mike’s ($150 million), VaxCare ($140 million), and Cotiviti ($13 million).
In real estate, CalSTRS deployed $2.4 billion within its $47 billion property portfolio, which posted a -4.25% return over the period and remains below its long-term 15% allocation target. Key commitments included $300 million each to IPI Partners III, a data center-focused fund recently acquired by Blue Owl Capital, and Artemis Healthcare Fund III, which invests in senior housing, medical office properties, and healthcare debt and is in the process of being acquired by Barings.
The system also committed $1.8 billion to its collaborative strategies portfolio, bringing that program’s total to $4.8 billion. Originally launched in 2009 as an innovation sleeve, the portfolio now spans two components: the innovation sleeve, which includes Innovative Strategies and the Sustainable Investment & Stewardship Strategies (SISS) Directed Private Portfolio, and the opportunistic sleeve, which targets private equity, private fixed income, real estate, and global equity. Recent allocations under this program included capital to Blue Owl and Apollo.
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