CalPERS Forms Strategic Partnership With San Francisco-based Texas Pacific Group; CalPERS Commits $485 Million to Start New Venture Capital Businesses.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 30, 2001

The California Public Employees' Retirement System (CalPERS) announced today that it has invested $485 million in TPG Ventures, a new venture capital firm targeting investments in the technology arena.

TPG Ventures, a subsidiary of San Francisco-based Texas Pacific Group, will make early and late stage investments in growing companies in the technology, communications, and business resources industries that are shaping consumer trends in the economy. Investments, targeted between $1-$20 million, are expected to be made in California and throughout the nation.

The investment includes four components:

-- $325 million to start the new venture capital fund

-- $75 million for a new crossover fund that buys public and private securities


-- $25 million for a new corporate venturing fund, to pursue forming new
businesses with large corporations

-- a $60 million equity stake in TPG Ventures.

"I'm pleased to cement this relationship with one of the leading private equity firms in the world," said Michael Flaherman, Investment Committee Chairman. "The equity ownership by CalPERS represents a new model of investing for institutional investors."

Texas Pacific Group, founded in 1993 and based in San Francisco, California, Fort Worth, Texas, and London, is a private investment partnership with capital of approximately $7 billion.

TPG is one of the largest private equity investors in the technology sector. The subsidiary, known as TPG Ventures, will make selective investments in the technology arena, focusing on both early and late stage funding. TPG Ventures has already signed two transactions.

The TPG deal is the most recent investment made by CalPERS Alternative Investment Management program. The System has more than $16 billion invested or committed to be invested in the private equity arena. Its total assets across all investment classes are approximately $170 billion. The System provides retirement and health benefits to more than 1.2 million state and local public employees and their families. For further information on CalPERS, please visit the System's web site at www.calpers.ca.gov.