The nation’s second-largest public pension also approved a plan allowing it to leverage its total fund.
Liquidity from the system’s PE portfolio dropped off over the past two years.
Many public pensions face governance issues when considering continuation fund opportunities.
The system backed off a planned secondary sale after prices came in too low.
He will continue in his CIO role through June 30, 2024 while the CalSTRS board conducts a global search for his successor.
The system joins other large LPs in making commitments to the smaller end of the market.
NEPC recommended San Bernardino commit $575m to private equity over the next two to three years.
The public pension fund is nearing its target allocation.
LPs remain overstressed, overworked and overburdened.
'Given that we don’t think the fundraising pace is going to pick up dramatically in 2024, then we will continue to take our time to ensure we’re backing the right partners while getting appropriate terms – and we’ll weigh our options if that’s what is required.'