CalSTRS allocates $5.7 billion in second half of 2020
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CalSTRS committed a total of $1.8 billion to real estate and $3.9 billion to private equity including co-investments in the six months ended Dec. 31, CalSTRS reported.
Between July 1 and Dec. 31, the $282.5 billion California State Teachers Retirement System, West Sacramento, commitments included an additional $650 million to an office joint venture with Beacon Capital Management known as BCal II JV . It also committed an additional $250 million to Fairfield AHF. In 2019, CalSTRS acquired a majority interest Fairfield Residential Co. LLC from Brookfield Asset Management. Brookfield retained its investment manager interest in Fairfield s real estate funds.
CalSTRS also committed $300 million to a residential developer
Secondary market likely to be aided by GP-led deals
Big increase in deals seen as industry adjusts after COVID-19 disruptions
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Jill Shaw said the secondary market gives limited partners a chance to leave longtime funds or investors a way to part with managers that don’t fit in their portfolio anymore.
Alternative investment general partner-led secondary market transactions are expected to increase in 2021, giving managers additional exit options and relieving the pressure of selling companies during the COVID-19 pandemic.
GP-led transactions involving single assets or portfolios are not just for troubled funds. Alternative investment managers with some of the most sought-after assets in sectors such as health care and software are recapitalizing on the secondary markets to give them more time and capital to accelerate growth of the portfolio companies in the funds, industry experts say.
AlpInvest raises $9 billion for latest secondaries fund
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Carlyle Group s AlpInvest Partners unit closed its latest alternative investment secondary market fund, AlpInvest Secondaries Program VII, at its hard cap of $9 billion, which exceeds its $8 billion fundraising target, according to a news release.
The new fund is 38% larger than its predecessor, the $6.5 billion AlpInvest Secondaries Program VI, which closed in 2017.
AlpInvest Secondaries Program VII will invest in positions in existing private equity funds through buying fund interests and general partner-led transactions.
There are about 170 investors in the fund, including the $430.5 billion California Public Employees Retirement System, Sacramento.
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