BlackRock is in talks to acquire the private equity business of the largest public pension fund in the US, the California Public Employees’ Retirement System, reported Bloomberg. Sources told the news outlet that BlackRock is weighing the possibility of overseeing some or all of CalPERS’s $26.2 billion private equity investments. Right now, the talks are still in the preliminary stage. According to Bloomberg, a key reason for CalPERS’s possible sale of its private equity business is to “control fees and offset anemic returns.”
Correction: A previous version of this report incorrectly stated BlackRock was considering selling its private equity portfolio. The report has been corrected.