CalPERS commits €400 million to European Private Equity

Standard Life Investments (Private Equity) Limited (“SLIPE”), has been selected by California Public Employees Retirement System (CalPERS) to manage a mandate valued at €400m euros for their Alternative Investment Management (AIM) Program.

The mandate is focussed exclusively on European private equity.

The mandate will be managed in a fund called ESP Golden Bear Europe Fund.

David Currie, Chief Executive of SLIPE, said: “We are delighted to have been selected for this mandate by CalPERS, the largest public pension fund in the US. This is testimony to the expertise and professionalism of our private equity team and our strong track record in the European private equity market. This is our fourth major segregated mandate from a North American client. Over 50% of our assets under management are now from North America.

“We expect the ESP Golden Bear Europe Fund to shortly start making commitments to European private equity funds and we are looking to create a strong co-investment portfolio.”

“Our new partner offers us unique access to the premier managers and co-investment opportunities in Europe, leveraging SLIPE’s strong relationships and proven track record,” said CalPERS Chief Investment Officer Russell Read. “We have a particular need for a partner who will focus exclusively on Small to Middle market European private equity.”

CalPERS is the largest public pension fund in the US with just over $245 billion in assets. CalPERS provides retirement and health benefits to approximately 1.5 million public employees, retirees and their families and more than 2,500 employers. Investments span domestic and international markets.

CalPERS has recently been refocusing on core direct relationships with a number of funds, while engaging new vehicles, including fund of funds, to pursue global opportunities at the smaller end of the market. ESP Golden Bear Europe Fund is the latest of five new AIM ventures in the last 18 months. In addition to SLIPE, these are Capital Partners, a fund of funds targeting emerging managers, Sacramento Private Equity Partners, focussing on venture capital and smaller middle market private equity funds in the US, and Asia Alternatives, focussing on smaller to middle market funds in Asia.

SLIPE is headquartered in Edinburgh, Scotland and has an office in Boston, MA, USA. The firm provides both European and US private equity fund of funds services to clients from 24 different countries and has raised over $7 billion. SLIPE was recently globally ranked as the sixth largest manager of private equity fund of funds for pension plans by Watson Wyatt.

It was recently announced that Standard Life Investments will be launching a new vehicle, SL Capital Partners Limited Liability Partnership, on 1 October 2007 into which the business of SLIPE and the general partner companies, which govern the funds SLIPE run, will be transferred. Standard Life Investments will retain 100% of the capital value of the business transferred and be entitled to 60% of the future economic returns and 60% of the voting rights of SL Capital Partners LLP. The remaining 40% will be held by senior members of the private equity management team.