CalPERS, CalSTRS among biggest players in private equity

California’s two major public pension funds rank among the giants in the world of private equity.

A study by the Private Equity Growth Capital Council showed that CalPERS has more money invested in private equity, $32.3 billion, than any other public pension fund in the United States. The teachers’ pension fund, CalSTRS, ranks No. 2 at $21.9 billion.

The results aren’t particularly surprising, as CalPERS and CalSTRS are the two largest public pension funds in the country.

The private equity council, a trade association based in Washington, D.C., said CalSTRS ranks ninth in profitability of its private equity investments. The teachers’ fund achieved an average of 14.8-percent gains each year for the past decade.

Private equity consists of investments in companies that aren’t publicly traded.

The survey covered 150 public pension funds.

This story was originally published October 16, 2014 at 11:33 AM with the headline "CalPERS, CalSTRS among biggest players in private equity."