$500 Billion Giant CalPERS Bets Big On Early-Stage Companies, Cuts Buyout Exposure

The California Public Employees Retirement System (CalPERS) is allocating more funds to fast-growing and early-stage companies in an effort to revamp its private equity portfolio.

The biggest U.S. public pension fund, which has more than $500 billion in assets, expanded its allocation to growth equity by 31% in the fiscal year ending June 2024, a report from CalPERs stated. This is up from 9% two years earlier.

"Growth and venture don't just have higher returns on average, they also have some diversification from buyout," Anton Orlich, managing investment director of private equity at CalPERS said in a Bloomberg article.

The pension ...