CalPERS Gains as First GI Partners Fund Closes

The California Public Employees’ Retirement System’s (CalPERS) has earned a profit of approximately $695 million from its investment in GI Partners Fund I. CalPERS committed $500 million to GI Partners Fund I in 2001 as part of joint initiative between its real estate and private equity programs to invest in technology-related assets. The investment generated a 31 percent net annualized internal rate of return.

PRESS RELEASE

The California Public Employees’ Retirement System’s (CalPERS) has earned a profit of approximately $695 million from its investment in GI Partners Fund I, a 10-year-old fund that closed after selling its last asset.
CalPERS committed $500 million to GI Partners Fund I in 2001 as part of joint initiative between its real estate and private equity programs to invest in technology-related assets. The investment generated a 31 percent net annualized internal rate of return.
“These significant returns are a credit to GI Partners and CalPERS investment professionals’ performance over the past 10 years,” said Joseph Dear, CalPERS Chief Investment Officer. “We have a long investing horizon, and the fund’s success is testimony to our commitment to an investment strategy that seeks superior risk-adjusted returns across all asset classes.”
GI Partners is a privately owned firm that invests in operating companies and assets in North America and Western Europe. CalPERS also has commitments of $500 million each to GI Partners Funds II and III, and GI Partners also manages more than $2 billion in assets in CalPERS CalEast real estate portfolio.
“We’re pleased that our investment in GI Partners Fund I has ended with such solid returns,” said Ted Eliopoulos, CalPERS Senior Investment Officer, Real Assets. “These strategic partnerships help us maintain our investment edge in a very competitive environment.”
CalPERS is the nation’s largest public pension fund with approximately $226 billion in market assets. It administers retirement benefits for more than 1.6 million active and retired State, public school, and local public agency employees and their families, and health benefits for more than 1.3 million members. The average CalPERS pension is $2,220 per month.