Key Takeaways
- • CalPERS is planning to expand its private-credit allocations targeting the energy transition, which its analysis indicates the market is undervaluing.
- • The pension fund's existing exposure includes an $800 million allocation to a fund run by Goldman Sachs Asset Management.
- • CalPERS is evaluating placing additional client capital into similar energy-transition private-credit funds, according to Peter Cashion, who oversees the plan's sustainable investment strategy.
Summary
The California Public Employees' Retirement System (CalPERS) is planning to build out its private-credit investments targeting the energy transition, according to Bloomberg. The pension plan's internal analysis indicates that this segment of the market is undervalued, which is the basis for the expanded focus.
CalPERS already holds an $800 million allocation to a fund managed by Goldman Sachs Asset Management within this strategy. The plan is now exploring placing more client money into similar funds, according to Peter Cashion, who oversees the pension's sustainable investment strategy.
The move signals continued institutional interest in private credit as a vehicle for financing energy transition projects, with the largest U.S. public pension positioning to increase its commitments in the space. Further details on fund selection, target allocation size, and timing were not disclosed in the source material.
CalPERS already holds an $800 million allocation to a fund managed by Goldman Sachs Asset Management within this strategy. The plan is now exploring placing more client money into similar funds, according to Peter Cashion, who oversees the pension's sustainable investment strategy.
The move signals continued institutional interest in private credit as a vehicle for financing energy transition projects, with the largest U.S. public pension positioning to increase its commitments in the space. Further details on fund selection, target allocation size, and timing were not disclosed in the source material.
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