The objective of the California Initiative is to generate attractive financial returns. As an ancillary benefit, the California Initiative was designed to create jobs and promote economic opportunity in California. To determine the extent of the ancillary benefits, CalPERS measures the impact of the California Initiative by examining portfolio companies that:
- Traditionally have had limited access to institutional equity capital
- Employ workers living in economically disadvantaged areas
- Provide employment opportunities to women and minority entrepreneurs and managers.
CalPERS and Hamilton Lane engaged Pacific Community Ventures (PCV), a leader in measuring and interpreting community outcomes of investments, to collect, analyze and report on the California Initiative’s ancillary benefits. PCV has collected and analyzed data from California Initiative portfolio companies for the last seven years, beginning in 2005. Since the inception of the California Initiative, 445 companies have received investment of approximately $1 billion of investment from CalPERS.