The Public Employees’ Retirement System of Nevada (Nevada PERS) has handed full discretion over its holdings in Clearlake Capital Group to its investment adviser after identifying a conflict of interest. Effective May 1, the $74.9 billion pension fund will rely on the adviser to manage, and if needed, sell the Clearlake positions in the secondary market. The move also removes any need for internal vote.

Callan Associates, the designated general investment consultant, assumes authority to rebalance the portfolio, a move that could affect liquidity for other investors tied to Clearlake assets. Pension trustees flagged the conflict after reviewing overlapping interests between the fund’s internal analysts and the private‑equity sponsor, prompting the shift to an independent manager. The adviser will report quarterly to the pension board, ensuring transparency.

By granting Callan full control, Nevada PERS aims to insulate its members from potential bias while preserving the $74.9 billion fund’s overall risk profile. The decision underscores heightened scrutiny of pension‑plan exposures to private‑equity firms and may set a precedent for other large public funds confronting similar governance challenges. Investors will watch secondary pricing closely as the adviser may liquidate positions to meet cash‑flow needs.