By Dale Kasler
Published: Wednesday, Dec. 14, 2011 – 12:00 am | Page 6B
CalPERS reported a $695 million profit from one of its investments Tuesday.
The California Public Employees’ Retirement System said it earned the money from an investment fund that closed down after a 10-year run that ended when it sold its last asset.
The profit is obviously welcome news for CalPERS. Although it earned some of the best returns in its history in the 2010-11 fiscal year, the giant public pension fund is still working to recover from the devastating losses it suffered during the 2008 market crash.
The just-reported profit stems from a 2001 investment with GI Partners of Menlo Park. CalPERS committed $500 million to an unusual “hybrid” investment fund operated by GI Partners. The fund was unusual because it was a blend of real estate and private equity, with an emphasis on tech deals.
In one of its biggest deals, it bought 21 data centers and folded them into a single company called Digital Realty Trust. Digital Realty is now traded on the New York Stock Exchange.
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