Calpers to up PE allocation

Despite growing fears that higher interest rates will curb the private equity returns, CalPERS, the biggest US public pension plan, is considering upping its allocation to the asset class according to a report by The Financial Times.

The report quotes CalPERS chief executive Marcie Frost as saying that the retirement fund, which has $442 billion in assets, and is already one of the world's biggest PE investors, is about to begin an extensive review of its holdings and that there is "appetite" to increase the size of its $52 billion private equity portfolio.

Almost nine months ago, chief investment officer Nicole Musicco revealed that a decision to freeze its PE programme between 1009 and 2018 had cost the pension plan an estimated $18 billion in returns.