CalPERS Selects Grove Street Advisors to Invest $350 Into Venture Capital Investments; New Investments Likely to Target California.SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 29, 1998--The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Public Employees' Retirement System (CalPERS) has selected Grove Street Advisors to implement and operate a new investment program that will invest up to $350 million in venture capital investments. It is expected that much of the capital will be deployed in California given the high concentration of venture capital funds Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential. Notes: and high-technology companies, such as information systems and biotechnology. "The pace of technological change in California is accelerating, creating significant investment opportunities," said William D. Crist, President of CalPERS Board of Administration. "This program allows us to tap the emerging venture funds early to establish long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. relationships." Grove Street Advisors, based in Lexington, Massachusetts Lexington is a town in Middlesex County, Massachusetts, United States. The population was 30,355 at the 2000 census. The town is famous for being the site of the opening shots of the Battles of Lexington and Concord, the first engagement of the American Revolution. , will target top-performing existing venture capital partnerships and new partnerships that potentially could emerge as the blue-chip venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] in the 21st century. The new investment vehicle is expected to help the US pension fund earn attractive returns and build long-term relationships in the venture capital arena. Venture capital funds gained upwards of 34 percent in annual investment returns from 1990-1996. "Grove Street Advisors has an excellent team of investment professionals with skills and experience investing in the venture capital market," said Charles P. Valdes, Chairman of CalPERS Investment Committee. CalPERS' increased exposure to venture capital investments should also diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. the fund's alternative investments. Currently, venture capital investments account for only 9 percent -- or $573 million -- of the System's $4.2 billion Alternative Investment Management program. Selection of Grove Street Advisors is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent satisfactory negotiations of terms and conditions. CalPERS manages more than $134 billion in assets, making it the largest public pension fund in the nation. The System provides retirement and health benefits to more than one million public employees and their families. Grove Street Advisors is a private equity advisory firm built by professionals with "operational" experience in the industry. For further information about CalPERS, visit the System's Web site at http://www.calpers.ca.gov. |
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