LM Capital Group LLC, a San Diego institutional bond investment manager, said April 14 it purchased 35 percent of its equity from a joint venture for an undisclosed price.

The joint venture that owned the stake was the state of California Public Employees’ Retirement System and Strategic Investment Group. The venture was established in 2002 as part of a CalPERS program to help emerging investment firms while farming out part of its portfolio to obtain higher returns, LM Capital said.

During the nine years that it worked on behalf of the state employees’ pension fund, LM Capital’s assets under management grew from $487 million to $4.7 billion as of March.

Colchester Partners LLC. advised LM Capital on the transaction which was financed by U.S. Bank.