Connect with us

Ted Eliopoulos Takes #2 on Public Investor 100-2016

ted_e_calpersSWFI Staff has released the Public Investor 100. He ranks 2 out of 100 for the SWFI Public Investor 100 – 2016.

To see the full rankings

Ted Eliopoulos holds the pinnacle investment spot at the California Public Employees’ Retirement System (CalPERS). The calm, well-mannered CIO started at CalPERS back in 2007 as a senior investment officer of real estate. But don’t let his calm reputation fool you. Eliopoulos played competitive tennis in his college for years, earning Men’s All-Time First Team All-Ivy League for doubles in 1986.

As global properties plummeted in value during the crisis, the new investment officer had a massive portfolio of real estate exposures dumped on him. The speculative land deals and other opportunistic property investments were major disasters. During the crisis and afterwards, Eliopoulos started reforming the real estate platform, seeking to cut an endless roster list of real estate managers, while cutting back on highly speculative land deals. It is true that the CalPERS real estate portfolio hasn’t fully recovered since the financial crisis, but Eliopoulos and his staff made important changes to operations and future allocations to help mitigate future issues.

It was in the Fall of 2014 that the Dartmouth-grad was named CIO of CalPERS. The CalPERS board made an interesting choice turning to someone who was trained as a lawyer, with a stint at Latham & Watkins, for the role of chief investment officer. Before CalPERS, Eliopoulos had never directly managed stocks or bonds in an institutional setting. However, he has a tremendous amount of internal manpower and a highly-sought after investment consultant to give him advice on which direction to take the massive pension giant.

Eliopoulos enacted another significant reform in the CalPERS investment units. He reluctantly exited the pension giant out of hedge funds, creating shockwaves on Wall Street and having other pensions make similar moves. A bold move from which we have yet to see the full result.

Harvard Agrees, Moves RE Team to Bain Capital

Harvard Management Company (HMC), the in-house investment unit of the endowment, agreed to spin out its real estate unit to Bain Capital. 22 HMC employees will join the new unit called Bain Capital Real Estate, which oversees Harvard’s US$ 3.4 billion real estate investments. SWFI research reported on the discussions earlier regarding this deal.

HMC has been looking to streamline operations and reduce investment staff headcount.

Harvard-Bain-Government Connections

Bain Capital has a quite a bit of Harvard alumni. Joshua Bekenstein and Stephen Pagliuca, co-Chairs of Bain Capital, are graduates of Harvard Business School. Pagliuca was a Democratic candidate for the U.S. Senate. Jonathan Lavine, co-Managing Partner of Bain Capital, is a graduate of Harvard Business School. Furthermore, Mitt Romney, the former Governor of Massachusetts and Republican presidential candidate in 2012, was a founder of Bain Capital. Former Massachusetts Governor Deval Patrick joined Bain Capital in 2015 and is a managing director of the Double Impact business. Patrick earned both his BA and JD from Harvard.

Why Bain Capital?

Why didn’t HMC seek to partner with an asset manager total focused in real estate such as Heitman, Hines or CBRE Global Investors? [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

CPPIB Gets Direct Exposure to Brazilian Renewables with Votorantim Energia

The Canada Pension Plan Investment Board (CPPIB) and São Paulo-based Votorantim Energia Ltda., the energy subsidiary of Brazil’s Votorantim Group, inked a deal to create a new joint venture focusing on investments and developments in the Brazilian power generation sector. CPPIB is making a bet on the Brazilian power generation market with a focus on renewable energy. Votorantim Energia has been trying to find institutional investor partners to expand its efforts, aiming to reach out to sovereign funds like GIC Private Limited and other large asset owners in North America.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Danica Pension Eyes Market Leader PFA with US$ 1 Billion SEB Takeover

Danica Pension, Denmark’s second largest commercial pension fund, has struck a deal to take over the Danish pension assets of Sweden’s SEB, putting itself in position to challenge current market leader PFA. Set to close in the first half of 2018 upon regulatory approval, the transaction will bring the Danske Bank subsidiary some 200,000 new pensioners for a customer base of 800,000, and raise its total assets under management to around US$ 86.8 billion. These figures put it nearly on par with PFA, which manages approximately US$ 96.3 billion in assets for some 1.2 million Danish pensioners.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading


© 2008-2017 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.