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Private Equity Allocations are Higher, and So is Demand for Fewer Names

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The California Public Employees’ Retirement System (CalPERS) is seeking to narrow the number of private equity managers they deal with. 389 managers are in the pension’s US$ 42 billion private equity program, CalPERS wants to chop that number down to less than a third. On December 16, Réal Desrochers, senior investment officer of the private equity program at CalPERS, told the pension investment committee of their goal to dwindle down to around 120 managers. The ex-CalSTRS private equity allocator believes having fewer private equity relationships would allow the pension to better monitor strategies. The slim down strategy encompasses making more concentrated plays with high-performing general partners versus massive diversification, essentially mimicking a private equity index. This strategy is being reflected by U.S. pensions like California State Teachers’ Retirement System (CalSTRS) and the Teacher Retirement System of Texas (TRS). TRS already inked strategic relationships with KKR and Apollo Management. In 2011, the TRS had around 111 relationships in their private markets portfolio – much smaller than CalPERS.

This strategy of reducing the number of relationships with private equity and other asset managers has blossomed.

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Turkey Wealth Fund Corrals Investors Toward Domestic Projects

The Turkey Wealth Fund is continuing talks with other global asset owners and financial institutions to lure capital toward projects and assets within the country. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Ardian Auctions Off €1 Billion in Infrastructure Assets to APG

French private equity giant Ardian has auctioned off an undisclosed stake in a portfolio of European infrastructure assets valued at €1 billion to Dutch asset owner manager APG Investments. APG, which first invested in the portfolio in 2006, plans on buying out partnership interests in the portfolio held by other investors. French multinational insurance firm AXA SA will retain its stake as a co-owner of the portfolio alongside APG, with Ardian staying on as asset manager and advisor. The transaction remains subject to regulatory approval.

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Tribal Council Approves Cherokee Nation Sovereign Wealth Fund Act

Tahlequah, Oklahoma-based Cherokee Nation Tribal Council approved the creation of the Cherokee Nation Sovereign Wealth Fund Act to establish a fund to ensure the continuation of tribal operations and the general welfare of tribal citizens.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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