CalPERS CEO says recent private‑credit purchases reflect new CIO’s strategy; allocation around 4%
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Summary
CalPERS CEO Miss Frost told the board that investment staff recently bought private‑credit loans with strong collateral, framing the purchases as part of a strategy under new Chief Investment Officer Stephen Gilmore and noting the fund now holds roughly 4% in private credit.
CalPERS CEO Miss Frost told the California Public Employees Retirement System board that the pension fund’s investment team recently bought private‑credit loans that she described as having ‘‘good collateral’’ and attractive terms, and that the purchases reflect a strategy set out by new Chief Investment Officer Stephen Gilmore.
"Because of our size, CalPERS often attracts public attention when we make a move in the market," Miss Frost said, adding that the team acted after being ‘‘fully briefed’’ throughout the process and that leadership has ‘‘absolute confidence’’ in staff decisions.
The CEO said the fund ‘‘currently sit[s] around 4% of the portfolio’’ in private credit and recalled that the fund at one point had a target of 8% ‘‘under TPA,’’ saying staff will continue to reevaluate appropriate targets moving forward. She framed the purchases as diversification meant to spread risk across the portfolio and said the team evaluates opportunities ‘‘solely based on fundamentals.’'
Miss Frost tied the trades to a broader message from the new CIO, saying Stephen Gilmore told staff he wanted the fund to seek opportunities that ‘‘appear to be going against the herd.’’ She emphasized CalPERS’ long‑term investor posture and said the fund does not ‘‘run scared’’ during episodes of market turmoil.
No formal motions or votes were recorded during the report. Miss Frost concluded by offering to take questions from board members.
