CalSTRS Ramps Up Investments with $4.1B in Alts Commitments
The California State Teachers’ Retirement System (CalSTRS), managing a $353 billion portfolio, accelerated its investment activity in the second half of 2024, deploying $4.1 billion across private equity, co-investments, and real estate. This surge reflects the pension fund’s aggressive push into private markets despite a challenging year for its real estate holdings.
CalSTRS has allocated over 15% of its assets to private equity and 13% to real estate, as of December 31, 2024. The pension poured nearly $3 billion into private equity in the second half of 2024, outpacing the $2 billion committed in the first half of the year.
Summit Partners Growth Equity XII received a $350 million commitment to its $9.5 billion buyout fund, closed in October 2024. The fund targets growth firms in tech, healthcare, life sciences, and consumer services. A $300 million pledge was made to Stone Point Capital’s $9 billion Trident X fund, which seeks control and minority stakes in financial services across North America and Europe—think insurance tech or fintech plays.
CalSTRS committed $635 million to co-investments, diversified across KKR’s Instructure Deal: The largest at $120 million alongside KKR, targeting Instructure—an edtech firm behind Canvas LMS—serving higher ed, K-12, and niche markets.
Over $1.2 billion went into eight real estate vehicles, including Nuveen Self Storage JV ($150 million); CenterSquare Essential Service Retail JV ($100 million); Fairfield Residential Holdings II ($150 million); DivCore Fund VII ($150 million); BlackChamber Opportunity Fund II ($350 million); Secured Capital Real Estate Partners VIII ($200 million); 3650 Stable Cash Flow ($75 million); and Trigate Fund V ($50 million).
The $53 billion private equity program posted a solid 13.2% return for the fiscal year ending June 30, 2024. The $47 billion real estate portfolio, however, bled over 8% through the third quarter.
