$473-Mil Investment Targets Underserved Markets

SACRAMENTO-As State Controller Kathleen Connell called upon the $152 billion California Public Employees Retirement System to explore investment possibilities that will help create affordable housing in the state, the nation’s largest public pension fund announced a plan to place $473 million in underserved urban and rural markets.

The state is in the midst of the greatest affordable housing crisis in its history, Connell said at a meeting of the investment committee. She has proposed CalPERS and the $100 billion California State Teachers’ Retirement System finance multifamily units that could include mixed-use and mixed income projects. The goal for CalPERS would be a 15 percent return.

Meanwhile, the CalPERS Board of Administration, serving as the pension fund’s Investment Committee, approved hiring 11 venture capital and private equity firms to direct the capital investments.