Key Takeaways
- Geography: United States.
Analysis
CalPERS, the California Public Employees’ Retirement System with $556.2 billion in assets under management, has appointed Mascha Canio as managing investment director for its private debt portfolio. She assumes the role on the heels of a strong fiscal year, where the private debt segment delivered a 12.8% return for 2024–25.
Canio succeeds Anton Orlich, who has led the portfolio on an interim basis while managing CalPERS’ private equity investments. Her appointment underscores the pension fund’s commitment to scaling its alternative credit strategy amid rising institutional interest in private credit.
Canio joins CalPERS from the Dutch pension service provider PGGM, where she spent nine years as head of credit and insurance-linked investments. Prior to that, she led structured credit at PGGM for a decade and built out the European operations at Octagon Credit Investors, focusing on leveraged loans and high-yield bonds.
Her early career began at the Shell Pension Fund in the Netherlands, where she managed portfolios across government debt, corporate bonds, and emerging markets fixed income.
“Mascha brings decades of experience across global credit markets,” said Stephen Gilmore, CalPERS’ chief investment officer. “Her depth of knowledge will help drive our continued outperformance in private debt and maintain strong risk-adjusted returns.”
CalPERS has significantly increased its exposure to private credit funds in recent years. Its commitments include vehicles managed by Blue Owl Capital, Golub Capital, and Apollo Global Management, as part of a strategy to capture stable income in a low-rate environment. The private debt book now stands at approximately $40 billion, with investments spanning direct lending, special situations, and opportunistic credit.
Under Canio’s leadership, CalPERS is expected to deepen its partnerships with global managers while exploring niche strategies such as distressed debt and credit secondaries to enhance long-term returns. The fund has also begun internalizing some credit mandates to reduce costs and improve control over capital deployment.
With private credit continuing to outperform other fixed income sectors, CalPERS aims to use its scale to access premium deal flow and co-investment opportunities while ensuring strong governance and risk management.