| Author |
CalPers Feels the Heat Replies |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 9338
Location: Houston, Texas & Los Angeles, California
|
 Posted: Wed Feb 24, 2010 2:16 pm Post subject: |
 |
|
CalPERS feels more heat in its investments in Carlyle, Apollo, and Silver Lake. Note that Blackstone's stock price has risen 40% since July 1, 2009, so these numbers are very dated (although still telling):
http://www.pehub.com/64216/calpers-comes-clean-on-pe-firm-valuations/
| Quote: | The oldest of the three investments is in The Carlyle Group, with CalPERS paying $175 million for a 5.5% stake in early 2001. That investment was valued at $242 million as of June 30, 2009 — thus valuing Carlyle at approximately $4.4 billion. Pretty good deal, except when one realizes that CalPERS carried its Carlyle stake at a whopping $925 million as of June 2008 (for a firm value of nearly $17 billion).
In 2007, CalPERS invested around $581 million into Apollo Management, in exchange for around a 9% stake (yes, this was a deal brokered by Al Villalobos). CalPERS reports that the stake was valued at just $124.6 million as of June 30, 2009. This is a major drop from the $412 million carrying value on year earlier, and would value Apollo at around $1.38 billion.
Finally, there is Silver Lake Partners. CalPERS was carrying its $275 million investment at cost in the 2008 report, because it was so new. One year later, that figure dropped to $162.33 million. The position represents a 9.9% ownership stake in Silver Lake, thus valuing the tech-focused firm at around $1.64 billion.
All together, CalPERS invested around $1.03 billion into the three firms (not including individual fund commitments). The aggregate carrying value through last summer was just $528 million… |
|
|
| Back to top |
|
 |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 9338
Location: Houston, Texas & Los Angeles, California
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 9338
Location: Houston, Texas & Los Angeles, California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 11525
Location: Sunny California
|
| Posted: Tue Nov 17, 2009 8:59 am Post subject: |
|
|
Trying to exclude the pay-and-pray aspect in RE investment in style at he time CalPERS tried to unlock value the old fashioned way--cronyism. Backfiring now in big way for this highly image-crafted institution which is now having it image imposed upon it. New era in public utilities?
http://www.sacbee.com/business/story/2327692.html
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 11525
Location: Sunny California
|
|
| Back to top |
|
|
diesel
Moderator
Joined: 05 Oct 2006
Posts: 588
Location: Australia & New Zealand
|
| Posted: Sun Feb 01, 2009 1:53 am Post subject: |
|
|
http://www.wsws.org/articles/2009/jan2009/calp-j30.shtml
| Quote: | | CalPERS is the largest pension fund in the US and the fourth largest in the world. At its height in October 2007 it had $260 billion in assets, comparable to the GDP of Poland, Indonesia or Denmark. At the end of 2008 CalPERS was worth $186 billion, one of its worst annual declines since the fund’s inception in 1932. It is one of the latest casualties of the financial collapse on Wall Street. |
_________________
“I was once Snow White, but I drifted” – Mae West |
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 11525
Location: Sunny California
|
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 9338
Location: Houston, Texas & Los Angeles, California
|
| Posted: Sun Oct 26, 2008 12:51 pm Post subject: |
|
|
Meanwhile, CalSTRS has been heavily playing defense and is poised to redeploy back into equities once credit spreads start coming in significantly:
http://www.sacbee.com/103/story/1311408.html |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 9338
Location: Houston, Texas & Los Angeles, California
|
| Posted: Sat Oct 25, 2008 5:37 pm Post subject: |
|
|
Another unintended consequence: CalPERS forced to sell stocks to raise cash to meet capital calls from private equity funds:
http://online.wsj.com/article/SB122488856222368463.html?mod=testMod
| Quote: | The nation's largest public pension fund, known as Calpers, is unloading stocks in a falling market to make sure it has enough cash to meet its obligations.
The pressures come as the California Public Employees' Retirement System has had to raise cash to fulfill commitments to private-equity firms and real-estate partners. The giant fund's predicament is another sign of how the market selloff is tightening the screws on pension funds nationwide. Many other pension funds have similar partnerships and could also confront liquidity strains.
Members of the board investment committee at Calpers held a closed-door session on Monday and discussed ways to raise more cash, according to people familiar with the matter. The issue was brought to the attention of the committee after members of the investment staff expressed concern, a person with knowledge of the matter said. |
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
