The California Public Employees' Retirement System (CalPERS) is investing $425 million as part of a strategic financial relationship with The Carlyle Group. CalPERS initial funding will consist of a $250 million investment in various new Carlyle private equity funds and a $175 million investment for a minority equity stake in The Carlyle Group.
In addition, CalPERS has an option over the next two years to invest an additional $425 million as part of the relationship with Carlyle.
The Washington, D.C.-based Carlyle Group has offices around the world and manages over $12.5 billion of private equity capital in 14 active buyout, venture, real estate, high-yield, and energy funds. Founded in 1987, Carlyle has invested $5.2 billion in equity and achieved at 34 percent annual return.
"We have maintained a strong relationship with Carlyle over the past five years, and have been very pleased with the firm's performance," said William D. Crist, president of CalPERS Board of Administration. "It was important to extend this relationship with an equity interest that will enable us to participate in the firm's growth and success."
CalPERS began its investment relationship with Carlyle in 1996 with an $80 million investment in Carlyle Partners II, L.P., and later made a $150 million investment in Carlyle Partners III, L.P. in 2000.
"We are convinced that our relationship with Carlyle will strengthen their global capabilities," said Michael Flaherman, chairman of CalPERS Investment Committee.
CalPERS provides retirement and health benefits to more than 1.2 million state and local public employees and their families. It has more than $16 billion invested or committed to be invested in the private equity arena and total assets across all investment classes are approximately $170 billion.
The Carlyle Group is located on the Web at http://www.thecarlylegroup.com.
