CalPERS considers outsourcing private equity to BlackRock

BlackRock CEO Larry Fink. Photo: AP/Mark Lennihan

CalPERS, the nation's largest public pension, is in early talks to outsource management of its $26 billion private equity investment portfolio to BlackRock. Bloomberg was first with the news, which Axios has since confirmed.

Why it matters: The CalPERS pension fund serves more than 1.8 million members, so strong investment returns are imperative. It's no longer private equity's 800 lb gorilla in terms of influence, but that $26 billion can still rattle big cages.