Brett Johnson
Staff and consultants of the $5bn Silicon Valley pension are bullish about opportunities in a depressed VC marketplace.
Finding itself at the more conservative end of LP exposure to PE in recent years, one of the nation’s largest sovereign wealth funds is exploring an expanded role for private assets.
Firm with $7.3bn raised in VC program since first fund in 1990 anticipating return of IPOs and M&As later this year or next, with uptick of CVs in the meantime.
With peers facing substantial portfolio challenges, the $30bn endowment is urging restraint in what its leaders say is an environment for endowments akin to 2008’s financial crisis.
'Investors in the fund will have the option to earmark a portion of their investment to be held in an interest-bearing account that will serve as an ongoing source of revenue to cover management fees and carried interest,' says managing partner Michelle Urben.
Major pension signals it will continue expansion of diverse representation among managers in private market assets during overview of DEI accomplishments.
PE strategies haven’t deviated significantly as a reaction to geopolitics or market conditions, according to a trio of LPs who spoke at a NEXUS 2025 panel.
The public pension has committed a combined $95m to venture funds managed by Upfront Ventures, StepStone Group and Mission BioCapital since 2019.
San Jose Federated, which has committed to seven VC funds in the past four years, shifted decision-making for venture investments from its investment committee to staff.
The California pension system plans to allocate $650m to private equity this year, up from a target of $575m last year.