CalSTRS distressed debt, mezzanine portfolios disappoint

The $161.5bn retirement system’s distressed debt and mezzanine portfolios failed to clear three and five year performance benchmarks, which contributed to a disappointing returns for the private equity programme. 

Lacklustre performance within The California State Teachers’ Retirement System’s mezzanine and distressed debt portfolios has contributed to its private equity programme falling short of three and five year performance benchmarks, according to a Pension Consulting Alliance report made available through CalSTRS’ website.

CalSTRS’ private equity programme, which includes allocations to distressed debt and mezzanine funds, generated a five-year return of only 3.9

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