--- title: "CalSTRS and CalPERS: where profit sharing enters investment costs | Altss Blog" description: "CalSTRS and CalPERS illustrate different cost measures. A worked example shows how to reconcile profit sharing with investment returns." canonical: "https://altss.com/blog/calstrs-calpers-investment-costs-carried-interest-reporting" --- [Altss Research](https://www.linkedin.com/company/altss) 3 min read Updated Nov 13, 2026 Share # CalSTRS and CalPERS: where profit sharing enters investment costs CalSTRS and CalPERS illustrate different cost measures. A worked example shows how to reconcile profit sharing with investment returns. [Back to blog](https://altss.com/blog) Share [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=) [X](https://x.com/intent/tweet?url=&text=CalSTRS%20and%20CalPERS%3A%20where%20profit%20sharing%20enters%20investment%20costs) Copy link CalPERS’ draft accounts for the year ended June 30, 2026 disclose $552.979 million of PERF private-equity and private-debt profit sharing paid. Its [accounting note and accompanying schedule](https://www.calpers.ca.gov/documents/202611-finance-agenda-item5b-03-a/download?inline=) place the specified realized profit sharing in net appreciation, outside investment costs. CalSTRS takes a different presentation in its [calendar-year 2025 cash-cost report](https://www.calstrs.com/files/7f27ce27d/INV%2B2026-11%2BItem%2B07.00.pdf): reported overall costs of $2.895 billion include $750 million of carried interest. The reporting period, population and basis differ from the CalPERS statements. These figures cannot rank the plans’ efficiency. The CalPERS figures remain provisional: the [November 17 committee memorandum](https://www.calpers.ca.gov/documents/202611-finance-agenda-item5b-00-a/download?inline=) seeks approval of draft financial statements. The profit-sharing schedule nets returns of profit distributed in earlier years. ## A cost inventory and a return adjustment answer different questions An investment committee may want to know how much an implementation route costs and what return remains for beneficiaries. Those questions need a connected reconciliation, but they do not start from the same number. A compensation inventory identifies the amounts borne by the investment. A return reconciliation starts with a defined performance measure and establishes which deductions are already inside it. Consider an Altss-created illustration, with every number hypothetical. A portfolio reports a $500 million investment gain after $10 million of profit sharing, but before $40 million of separately reported expenses. The result after those expenses is $460 million: $500 million less $40 million. The cost inventory is $50 million—$10 million plus $40 million. Subtracting that entire inventory from the already carry-net $500 million would produce $450 million and deduct the same $10 million twice. Starting instead from the assumed $510 million gain before profit sharing, subtracting $50 million correctly produces $460 million. Neither route changes the economic result. The error comes from combining the cost total from one presentation with a starting return from another. These assumptions illustrate the reconciliation; they do not reconstruct either pension’s accounts. ## Put the cost definition beside the proposed mandate For a manager comparison, request the proposed economics in components rather than a single blended percentage. Keep the management-fee base, profit-sharing calculation, expenses borne by the vehicle and any separately payable advisory charge visible. Mark which amounts are contractual terms, historical payments or estimates for the proposed investment. Then build two views. The cost view asks which compensation and expenses belong to the chosen investment population and period. The return view records the starting return measure and each deduction needed to reach the investor’s result. An amount can belong in the cost inventory while already being reflected in the starting return. Linking the views prevents omission in one analysis and duplication in the other. The [APERS fee-base example](https://altss.com/blog/apers-private-credit-fund-vehicle-tranches-fee-bases) addresses the complementary task: identifying the capital to which a quoted term applies. For an actual comparison, retain that contractual scope alongside the accounting treatment. A proposed change should show what the investor would pay differently, when the difference arises and which assumptions drive it. If comparable figures are unavailable, present the identified components and leave the unmatched total unresolved. That gives an investment committee a precise follow-up request without attaching a misleading cost ranking to unlike disclosures. Share this article Share ## Related articles [Image: Top 6 Private-Company Deal-Sourcing Databases Used by PE & VC Firms (2026)](https://altss.com/blog/top-6-private-company-deal-sourcing-databases-used-by-pe-and-vc-firms-2025) Private Markets 18 min read ### [Top 6 Private-Company Deal-Sourcing Databases Used by PE & VC Firms (2026)](https://altss.com/blog/top-6-private-company-deal-sourcing-databases-used-by-pe-and-vc-firms-2025) Updated for 2026: the six platforms buy-side teams actually use—PitchBook, S&P Capital IQ Pro, SourceScrub, Grata, CB Insights, and Altss—with ownership ch [Altss Research](https://www.linkedin.com/company/altss) Oct 6, 2025 [Image: A removable report face for Citadel and a separate reveal shield for HBK illustrate restatement versus later disclosure of historical holdings.](https://altss.com/blog/13f-amendments-restatement-new-holdings-citadel-hbk) Private Markets 4 min read ### [13F amendments: replacing a report or adding previously omitted holdings](https://altss.com/blog/13f-amendments-restatement-new-holdings-citadel-hbk) 13F restatements and additions need different dataset operations. 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