CalPERS takes stake in Silver Lake

Think the future of the private equity industry is cloudy? CalPERS doesn't. It just took a 9.9 percent stake in Silver Lake Partners in a deal that values the firm at 5.8 times assets, according to the New York Times. That compares with a 4.6 times assets valuation for the Blackstone Group. If there has been one institution that has really validated the alternative investment approach, it has been CalPERS. The pension fund is yearning for noncorrelated returns, and this is one of the few ways to get it. CalPERS apparently sees the current downturn as an investment opportunity. Other PE firms are in need of capital: Apollo And Carlyle Group have each sold stakes to Abu Dhabi investors while Kohlberg Kravis Roberts seems to be pressing ahead with its IPO.  

For more:
- here's the NY Times article