(Bloomberg) — The California Public Employees’ Retirement System, the biggest U.S. public pension, is trying to reduce the number of private-equity managers it hires and teaming up with other institutional investors to negotiate better terms.
Chief Investment Officer Ted Eliopoulos told the Financial Times in a story published today that the $292 billion pension could cut the number of managers it hires by two-thirds. Private-equity firms use borrowed money to buy companies, improve profits and resell them.
Brad Pacheco, a Calpers spokesman, said in an e-mail that the pension plans to reduce the number of managers as part of a broader restructuring. “Part of the reason is costs, among other things, like simplifying the portfolio,” he said.