The California State Teachers’ Retirement System has expanded its relationship with Banc of America Merrill Lynch Capital Access Fund into underserved inner-city and rural markets.
Calstrs is committing USD100m to its fourth BAML fund since 2003, targeting underserved domestic markets.
Calstrs has the option of increasing its commitment to USD200m within four years.
“This fund extends new capital into traditionally underserved communities in the inner cities and rural areas, during a time when the capital that small businesses need in order to grow is in short supply,” says Calstrs chief investment officer Christopher J. Ailman (pictured). “These opportunities, we believe, will yield long-term value that will benefit the retirement fund and add to the financial security of our members.”
The fund is part of a private equity portfolio exceeding USD1.135bn, known as the Proactive Portfolio. The Proactive Portfolio includes the urban and rural programme, an emerging manager programme and other strategies.
The Proactive Portfolio encompasses a broad range of industries, including media and entertainment, consumer products and retail, manufacturing and distribution, technology and telecom, business and financial services, and healthcare.
