CalPERS’ carry disclosure shows largest payment to Apollo

Apollo Credit Opportunity Fund I received almost $300m from the pension fund which has revealed the carried interest it has paid to private equity managers over the last 25 years.  

Apollo’s Credit Opportunity Fund I received $298.9 million in carried interest from the California Public Employees Retirement System (CalPERS) – the biggest cheque the pension fund has written since its private equity programme began in 1990.

Details of the payment to the fund, which was raised in 2008 and has posted 30.4 percent in gross IRR making it one of CalPERS’ best performers, were revealed in a report by the pension fund detailing the carry it has paid to PE managers in the last 25 years.

Since inception, CalPERS has paid $3.4 billion in carry, while receiving $24.4 billion in net gains. For the $291.4 billion pension fund’s latest fiscal year, which ended on 30 June, the retirement fund paid $700 million in carried interest, while earning $4.1 billion in returns.

Other carry payments to debt managers, included $16.1 million to Avenue Europe Special Situations Fund, $10 million to Avenue Special Situations Fund IV and $31.8 million to Avenue Special Situations Fund V. The GSO Capital Solutions Fund, a mezzanine strategy, earned $14.8 million in carry.

The report, which follows protracted criticism among public pension funds about lack of disclosure and transparency on carried interest that private equity managers earn, can be found on CalPERS’ website. The pension fund said 98 percent of managers complied with the request for disclosures on fees.