Why Calpers Is Betting $1B on Upstart Private Equity Firms

The transcript discusses CalPERS' investment strategies, focusing on the balance between large and emerging managers, the challenges of private vs public market returns, and the potential of emerging managers to deliver excess returns. It highlights the importance of strategic partnerships, adapting to market volatility, and the role of ESG in sustainable investing.

What is a key benefit of investing in smaller, emerging managers according to the first section?

• They often outperform their larger peers.

• They have less regulatory oversight.

• They are more likely to follow traditional investment strategies.

• They have more capital to invest.

What is a primary goal of CalPERS' strategy with larger managers?

• To focus solely on public market returns.

• To reduce their investment in private markets.

• To maintain strong strategic partnerships.

• To completely bypass them.

What does CalPERS aim to achieve through knowledge transfer with strategic partners?

• To reduce their investment in private equity.

• To foster a culture of entrepreneurialism.

• To increase their reliance on larger managers.

• To eliminate the need for in-house expertise.

What is CalPERS' current focus in the private market space?

• Building in-house expertise and strategic partnerships.

• Exiting the private market space entirely.

• Investing only in real estate.

• Avoiding any form of co-investment.

What is CalPERS' approach to managing market volatility?

• Avoiding all private market investments.

• Focusing solely on public market investments.

• Reducing their strategic partnerships.

• Leaning into alternative asset classes.

How does CalPERS view the role of hedge funds in their investment strategy?

• They see hedge funds as the primary investment vehicle.

• They are considering reintroducing hedge funds.

• They have completely ruled out hedge funds.

• They believe hedge funds are too risky.

What is a significant focus of CalPERS' investment strategy regarding ESG?

• To invest only in companies with low ESG scores.

• To focus only on the risk aspect of ESG.

• To integrate ESG considerations into their investment program.

• To ignore ESG factors entirely.