COMPANY BACKGROUND

The California State Teachers’ Retirement System was established in 1913 to provide retirement benefits to California’s public-school educators from prekindergarten through community college. Today, CalSTRS is the largest educator-only pension fund in the world, and the second-largest pension fund in the U.S. CalSTRS serves California's 975,000 public school educators and their families from the state’s 1,600 school districts, county offices of education, and community college districts. The market value of the CalSTRS investment portfolio was approximately $320 billion as of August 31, 2021.

CalSTRS is administered by a 12-member Teachers’ Retirement Board. The board sets the policies and makes rules for the system and is responsible for ensuring benefits are paid by the system in accordance with law. The CalSTRS Teachers’ Retirement Board includes three member-elected positions representing current educators, an appointed retired CalSTRS member, three appointed public representatives, an appointed school board representative, and four members who serve in an ex-officio capacity.

Established in 1988, the CalSTRS Private Equity program invests globally in partnerships, separate accounts, general partner interests, secondary interests, and co-investments. Investments include buyouts, growth equity, debt-related, and venture capital. External advisors support the program by providing investment selection advice, research and gate-keeping services. There are 36 staff positions dedicated to the Private Equity team including seven Associate Portfolio Managers. CalSTRS maintains a long-term policy target for Private Equity of 13 percent, translating to a portfolio in excess of $40 billion.

POSITION OVERVIEW AND KEY RESPONSIBILITIES

Private Equity operates within a fast-paced, team-oriented environment. While collaborating with world class general partners, advisors, consultants and attorneys, the candidate will contribute to the success of one of the largest private equity programs in the world. Team members will collaborate with other Private Equity Portfolio Managers and the broader CalSTRS Investment Office leaders to engage in projects ranging from evaluation of co-investments, secondary transactions, and other private equity-related investment strategies (e.g. primary funds, private credit, venture capital, etc.).

Over the past several years, the team has committed approximately $8 billion per annum to private equity across partnerships, secondaries, and co-investments. The Private Equity team has been focused in recent years on significantly increasing the size of its portfolio while at the same time increasing the percentage allocated to co-investments. This evolution is driven by the principles of CalSTRS’ Collaborative Model, which is focused on reducing fees and the associated drag on investment returns and managing more capital in-house.

To help bolster its co-investment activity, the Private Equity team seeks to recruit an Associate Portfolio Manager to support the Portfolio Managers of Direct Investments on all investment activity. Key responsibilities will include execution of transactions, portfolio monitoring and oversight, performance measurement, assisting in the development of a comprehensive strategy for the co-investment program, and supervising and mentoring staff. Additional details around these responsibilities are described below but not limited to the following:

• Transaction Management & Portfolio Oversight: Perform due diligence and underwriting on all co-investments and other transaction types (partnerships, secondaries, strategic relationships, special situations, etc.) assessing past and projected financial performance, quality of management teams, investment merits and risks, expected returns, and market attractiveness. Continuously evaluate and improve the investment due diligence and approval process to meet the abbreviated timelines of co-investment transactions (primary and secondary). Set objectives and performance standards to weigh the overall soundness of investment theses and risks to determine if investment characteristics fit CalSTRS’ portfolio requirements. Assist in co-investment sourcing (primary and secondary) from private asset investment managers (both existing and potential) to find investment opportunities with an attractive risk/reward proposition and strong potential for value creation. Build and develop relationships with new and potential investment managers to enhance CalSTRS’ reputation in the market. Maintain strong relationships with existing investment managers communicating CalSTRS’ interest in co-investment opportunities. Monitor closed investments and recommend exit timing and strategies with senior Private Equity professionals. Review, recommend, and implement appropriate action with respect to amendments or other legal matters affecting specific investments while informing senior private equity professionals of important events and/or transactions pertinent to those investments. Lead co-investment activities with independent fiduciaries, the Private Equity Board Consultant, and/or the Private Equity Program Advisor. Ensure compliance with Private Equity’s policies and procedures in conjunction with Private Equity Operations. Collaborate with other asset classes within the Investments Branch to promote collaborative strategies that fit current market opportunities and create new investment strategies. Support legal, and operations to ensure execution of investment transactions, capital calls, and distributions. Participate in the selection and/or hiring of new consultants and advisors. Identify and recruit individuals for the co-investment team.

• Performance Measurement: Provide insights and data supporting how the private equity co-investment portfolio is likely to develop over time, given the current asset mix as well as the projected future opportunity set. Review and analyze program-wide performance quarterly while recommending and implementing program adjustments. Monitor and analyze co-investment portfolio risk including the utilization of a portfolio allocation model that measures vintage year, sector, stage, and investment manager allocation. Benchmark co-investment portfolio performance across various dimensions that include vintage year, sector, strategy against the Private Equity Policy benchmarks (public and GXPEI). Participate in cash flow modeling used to create a new commitment budget for the annual capital allocation process. Reassess individual investments and their fit into the overall private equity portfolio from a portfolio construction and performance expectation perspective. Contribute to the continuous refinement, improvement and overhaul of program-wide procedures, practices, templates, etc.

• Program Strategy: Assist in the development of a comprehensive strategy for the co-investment program (primary and secondary) in order to determine the optimal portfolio structure that meets or exceeds the total return objectives of the Private Equity program and the overall CalSTRS Investment Portfolio. Map the universe of co-investment opportunities (primary and secondary) to identify additional themes and areas where CalSTRS can invest and leverage its strengths. Support Portfolio Managers in the development of program-wide strategies, policy modifications, and individual investments (new or existing) for presentation to a variety of stakeholders. Contribute to the continuous refinement, improvement and overhaul of program-wide procedures, practices, templates, etc.

• People Management and Supervision: Act as a lead and resource to staff in the execution of co-investment (primary and secondary) transactions and oversee the required portfolio monitoring and management process. Coach, train, and mentor staff.

• Participate in special projects and committees tasked with improving internal processes and establishing best practices. Represent CalSTRS at various conferences, industry associations, and before the investment community.

PROFESSIONAL EXPERIENCE/QUALIFICATIONS

• 6 years relevant professional experience within private markets, including all aspects of portfolio management, direct investment, investment manager selection, and diligence processes within an institutional environment.
• Demonstrated investment track record as a direct/co-investment manager and fund investor from a fund-of-funds, endowment, foundation, pension plan or related investment organization.
• Success investing significant pools of capital across private market asset classes and in-depth knowledge of asset allocation theory and practice, portfolio risk management and investment structuring.
• Must have in-depth knowledge of private market-based investment strategies (private equity, private credit, venture, secondaries, mezzanine, and distressed).
• Ability to work with little or no supervision, in line with the intentions of the team’s shared objectives.
• Excellent interpersonal skills; commitment to teamwork; and ability to work with and develop effective relationships across the organization.
• Strong oral and written communication skills.

EDUCATION

An undergraduate degree is required; a graduate degree and/or a CFA or CAIA are preferred.

COMPENSATION

Salary range is $120-180k base salary with 50% expected bonus.

SE# 510586472