Scott Chan

bottom up it's transaction by transaction and that can only be done through a building expertise across all these different segments in the market um which we've done to you know to mirror our partners as well i think those have been really keys and then we've delegated the authority um down to that level you know people that have the greatest insight into the assets

bottom up it's transaction by transaction and that can only be done through a building expertise across all these different segments in the market um which we've done to you know to mirror our partners as well i think those have been really keys and then we've delegated the authority um down to that level you know people that have the greatest insight into the assets

And I would say 80% of our transactions work this way. They go into the division, is it private equity? Is it real estate? Is it fill in the blank? And they decide. They have a mature investment committee and they decide. And they can decide quickly, which has made us very dynamic in the marketplace.

And I would say 80% of our transactions work this way. They go into the division, is it private equity? Is it real estate? Is it fill in the blank? And they decide. They have a mature investment committee and they decide. And they can decide quickly, which has made us very dynamic in the marketplace.

And I would say 80% of our transactions work this way. They go into the division, is it private equity? Is it real estate? Is it fill in the blank? And they decide. They have a mature investment committee and they decide. And they can decide quickly, which has made us very dynamic in the marketplace.

But we have a proven history of generating alpha in pretty much every major asset class, every major division here at CalSTRS.

But we have a proven history of generating alpha in pretty much every major asset class, every major division here at CalSTRS.

But we have a proven history of generating alpha in pretty much every major asset class, every major division here at CalSTRS.

To me, it's a couple of things. So number one, I would define it as being embedded in the structure of the deal or the transaction. And then number two, I would say it's not taking any additional market risk. But what we're doing is we're trying to take operational risks that we think we can mitigate.

To me, it's a couple of things. So number one, I would define it as being embedded in the structure of the deal or the transaction. And then number two, I would say it's not taking any additional market risk. But what we're doing is we're trying to take operational risks that we think we can mitigate.

To me, it's a couple of things. So number one, I would define it as being embedded in the structure of the deal or the transaction. And then number two, I would say it's not taking any additional market risk. But what we're doing is we're trying to take operational risks that we think we can mitigate.

And how we would mitigate that is through resources, through expert staff who are capable of being able to structure these transactions and mitigate the operational risks of it. It's best just to provide a simple example.

And how we would mitigate that is through resources, through expert staff who are capable of being able to structure these transactions and mitigate the operational risks of it. It's best just to provide a simple example.

And how we would mitigate that is through resources, through expert staff who are capable of being able to structure these transactions and mitigate the operational risks of it. It's best just to provide a simple example.

If I look back at some of the early days of investing in private direct lending, we decided to structure a collaborative model deal with one of our managers where half of our investment, we were in their LP. We were a limited partner. and half investment we were co-investing with them.

If I look back at some of the early days of investing in private direct lending, we decided to structure a collaborative model deal with one of our managers where half of our investment, we were in their LP. We were a limited partner. and half investment we were co-investing with them.

If I look back at some of the early days of investing in private direct lending, we decided to structure a collaborative model deal with one of our managers where half of our investment, we were in their LP. We were a limited partner. and half investment we were co-investing with them.

So right there, we captured a 50% discount in fees, because we were no fee, no carry on the co-investment side while paying full fees on the LP side of it. But we were also, because we were anchoring some of their funds going forward, and we had the expertise with staff to be able to assess that, because some of these were newer endeavors with less of a track record than you might see.

So right there, we captured a 50% discount in fees, because we were no fee, no carry on the co-investment side while paying full fees on the LP side of it. But we were also, because we were anchoring some of their funds going forward, and we had the expertise with staff to be able to assess that, because some of these were newer endeavors with less of a track record than you might see.

So right there, we captured a 50% discount in fees, because we were no fee, no carry on the co-investment side while paying full fees on the LP side of it. But we were also, because we were anchoring some of their funds going forward, and we had the expertise with staff to be able to assess that, because some of these were newer endeavors with less of a track record than you might see.