FORTUNE — Former Kohlberg Kravis Roberts (KKR) executives Perry Golkin and Mike Tokarz are quietly raising a new private equity fund designed to adhere closely to the investor-friendly ILPA principles. It’s being called Public Pension Capital, which kind of gives away its expected source of limited partner commitments.
I’m told the tentative target is approximately $500 million, although that may end up closer to $1 billion.
Golkin originally joined KKR in 1986, during which time his roles included head of fundraising and head of financial services investing. His board seats included Willis Group, Primedia, Walter Industries, Rockwood Chemicals, and American Re-Insurance Company. Golkin transitioned into a part-time advisory partner role in 2009 – a position he seems to have left earlier this summer.
Tokarz was an 18-year KKR vet, having originally gotten to know the firm as a commercial banker at Continental Illinois (where he helped finance KKR’s first major LBO – Houdaille Industries). Tokarz left KKR in 2002 to form a private merchant bank, and also is chairman and portfolio head of publicly-listed MVC Capital.
Neither Golkin nor Tokarz responded to requests for comment.
Should be interesting to see the fund’s specific details, and how fee hawks like CalPERS react. Moreover, Golkin and Tokarz are fundraising at the same time KKR itself is trying to sew up its latest mega-buyout fund, which has made LP concessions but still isn’t near complete alignment with the ILPA recommendations. The two vehicles aren’t exactly in direct competition – much different sizes, different focuses, etc. – but they still will sit next to each other on public pension staff desks.
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