Key Takeaways
- • CalPERS' private equity portfolio delivered 13.5%, 12.9%, and 11.8% annualized returns over five-, 10-, and 20-year periods respectively—outperforming all other asset classes over those timeframes, according to Deputy CIO Anton Orlich at the June 15 board meeting.
- • The pension fund's revamped PE strategy, launched in November 2022, has generated a 29.5% internal rate of return since inception, compared with 11.2% for the prior strategy—a dramatic improvement that lifted CalPERS' 10-year PE rankings from 55th out of 56 large U.S. public pension funds to a top performer.
- • Private equity net asset value reached approximately $119 billion as of March 31, 2026, up from $92 billion one year prior, reflecting both strong performance and capital deployment under the new strategy.
- • The strategic reallocation shifted the PE portfolio composition: large buyouts decreased to 32% from 46%, growth equity expanded to 32% from 18%, and venture capital rose to 6% from 2% following the fund's 2022 venture program relaunch after a decade-long hiatus.
- • One-year PE returns of 21.2% (as of March 31) tracked closely with public equities' 21.5% while outpacing the total fund's 14.1% return, demonstrating continued momentum in the restructured portfolio.
Summary
CalPERS presented compelling evidence of its private equity program's outperformance at its June 15 board meeting, with Deputy CIO of Private Markets Anton Orlich—recently promoted from head of private equity—highlighting the asset class as the pension fund's highest-returning category across multiple time horizons. Over the past 20 years, private equity returned 11.8% annualized, compared favorably to all competing asset classes in CalPERS' portfolio. The five- and 10-year returns of 13.5% and 12.9% respectively reinforced this pattern of consistent outperformance.
The transformation of CalPERS' private equity strategy, initiated in November 2022, has proven substantially successful in repositioning the fund toward higher-growth segments. The prior PE strategy ranked 55th out of 56 U.S. public pension funds with at least $1 billion in PE assets as of June 2022, but the restructured approach has delivered a 29.5% internal rate of return since inception—more than double the predecessor strategy's 11.2% IRR. This strategic shift involved deliberate diversification away from large-cap buyouts, which comprised 46% of the portfolio in September 2022 and declined to 32% by March 2026. Correspondingly, growth equity allocations expanded from 18% to 32%, venture capital surged from 2% to 6%, and middle-market buyouts held relatively steady at 25% from 28%.
As of March 31, 2026, CalPERS' private equity portfolio had grown to $119 billion in net asset value from $92 billion a year earlier, reflecting both organic returns and fresh capital deployment. Over the one-year period ending March 31, private equity returned 21.2%—competitive with public equities' 21.5% return and substantially above the total fund's 14.1% gain. The pension fund's relaunch of its venture capital program in 2022, after a decade of inactivity, has positioned CalPERS to capture early-stage and high-growth investment opportunities alongside its expanded middle-market and growth equity commitments.
## DETAILED SUMMARY
CalPERS presented compelling evidence of its private equity program's outperformance at its June 15 board meeting, with Deputy CIO of Private Markets Anton Orlich—recently promoted from head of private equity—highlighting the asset class as the pension fund's highest-returning category across multiple time horizons. Over the past 20 years, private equity returned 11.8% annualized, compared favorably to all competing asset classes in CalPERS' portfolio. The five- and 10-year returns of 13.5% and 12.9% respectively reinforced this pattern of consistent outperformance.
The transformation of CalPERS' private equity strategy, initiated in November 2022, has proven substantially successful in repositioning the fund toward higher-growth segments. The prior PE strategy ranked 55th out of 56 U.S. public pension funds with at least $1 billion in PE assets as of June 2022, but the restructured approach has delivered a 29.5% internal rate of return since inception—more than double the predecessor strategy's 11.2% IRR. This strategic shift involved deliberate diversification away from large-cap buyouts, which comprised 46% of the portfolio in September 2022 and declined to 32% by March 2026. Correspondingly, growth equity allocations expanded from 18% to 32%, venture capital surged from 2% to 6%, and middle-market buyouts held relatively steady at 25% from 28%.
As of March 31, 2026, CalPERS' private equity portfolio had grown to $119 billion in net asset value from $92 billion a year earlier, reflecting both organic returns and fresh capital deployment. Over the one-year period ending March 31, private equity returned 21.2%—competitive with public equities' 21.5% return and substantially above the total fund's 14.1% gain. The pension fund's relaunch of its venture capital program in 2022, after a decade of inactivity, has positioned CalPERS to capture early-stage and high-growth investment opportunities alongside its expanded middle-market and growth equity commitments.
The transformation of CalPERS' private equity strategy, initiated in November 2022, has proven substantially successful in repositioning the fund toward higher-growth segments. The prior PE strategy ranked 55th out of 56 U.S. public pension funds with at least $1 billion in PE assets as of June 2022, but the restructured approach has delivered a 29.5% internal rate of return since inception—more than double the predecessor strategy's 11.2% IRR. This strategic shift involved deliberate diversification away from large-cap buyouts, which comprised 46% of the portfolio in September 2022 and declined to 32% by March 2026. Correspondingly, growth equity allocations expanded from 18% to 32%, venture capital surged from 2% to 6%, and middle-market buyouts held relatively steady at 25% from 28%.
As of March 31, 2026, CalPERS' private equity portfolio had grown to $119 billion in net asset value from $92 billion a year earlier, reflecting both organic returns and fresh capital deployment. Over the one-year period ending March 31, private equity returned 21.2%—competitive with public equities' 21.5% return and substantially above the total fund's 14.1% gain. The pension fund's relaunch of its venture capital program in 2022, after a decade of inactivity, has positioned CalPERS to capture early-stage and high-growth investment opportunities alongside its expanded middle-market and growth equity commitments.
## DETAILED SUMMARY
CalPERS presented compelling evidence of its private equity program's outperformance at its June 15 board meeting, with Deputy CIO of Private Markets Anton Orlich—recently promoted from head of private equity—highlighting the asset class as the pension fund's highest-returning category across multiple time horizons. Over the past 20 years, private equity returned 11.8% annualized, compared favorably to all competing asset classes in CalPERS' portfolio. The five- and 10-year returns of 13.5% and 12.9% respectively reinforced this pattern of consistent outperformance.
The transformation of CalPERS' private equity strategy, initiated in November 2022, has proven substantially successful in repositioning the fund toward higher-growth segments. The prior PE strategy ranked 55th out of 56 U.S. public pension funds with at least $1 billion in PE assets as of June 2022, but the restructured approach has delivered a 29.5% internal rate of return since inception—more than double the predecessor strategy's 11.2% IRR. This strategic shift involved deliberate diversification away from large-cap buyouts, which comprised 46% of the portfolio in September 2022 and declined to 32% by March 2026. Correspondingly, growth equity allocations expanded from 18% to 32%, venture capital surged from 2% to 6%, and middle-market buyouts held relatively steady at 25% from 28%.
As of March 31, 2026, CalPERS' private equity portfolio had grown to $119 billion in net asset value from $92 billion a year earlier, reflecting both organic returns and fresh capital deployment. Over the one-year period ending March 31, private equity returned 21.2%—competitive with public equities' 21.5% return and substantially above the total fund's 14.1% gain. The pension fund's relaunch of its venture capital program in 2022, after a decade of inactivity, has positioned CalPERS to capture early-stage and high-growth investment opportunities alongside its expanded middle-market and growth equity commitments.
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