CalPERS expected to close sale of $1 bln private equity portfolio

The California Public Employees’ Retirement System was expected to complete the sale of a portfolio of private equity interests valued at about $1 billion, according to a person with knowledge of the transaction.

It’s not clear if the transaction closed yet. The sale included multiple buyers, rather than one large buyer, as has been the case with large portfolio deals recently, the person said. CalPERS did not disclose the funds in the portfolio, but sources have described it as an “eclectic mix” ill-suited for one buyer.

“It’s a mixed bag — some larger positions, some tail end, mixed quality,” a source said in a previous interview.

It’s also not clear if the portfolio sold at or near par or it was sold at a discount. Joe DeAnda, a spokesperson for CalPERS, did not respond to a request for comment.

UBS ran the sale, the fourth portfolio the bank’s secondary advisory group has handled for CalPERS since 2007. The four sales included a $2 billion portfolio sold in 2007, another valued at about $800 million that was sold to AlpInvest Partners in 2011, and a $1.5 billion porfolio sold in 2012.

CalPERS has been selling private equity stakes to trim down its large private equity portfolio, culling the number of manager relationships as it seeks to only stick with core relationships.

Earlier this year, CalPERS publicly announced it was cutting the number of private equity managers in its portfolio to 120 or less. The final number could fall below 100 managers, CalPERS Chief Investment Officer Ted Eliopoulos told the Financial Times in January.

Separately, the system is working with Park Hill Group to sell a portfolio of real estate fund stakes valued at about $3 billion. CalPERS plans to cut its 200-manager real estate roster to around 100 relationships by 2020.

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