April 2025 Public Pension Brief

Overview

Dakota’s April 2025 Public Pension Brief highlights investment meeting activity from over 350 public pension funds nationwide, capturing billions in commitments across private equity, private credit, venture capital, real assets, and infrastructure. Notable allocations include Washington State Investment Board’s $1.5B to Advent and co-investments, Teachers’ Retirement System of Illinois’ $150M+ to Vista and THL funds, and New York State Common’s $250M to Oaktree Power Opportunities. Plans continue to increase exposure to energy transition, sustainable infrastructure, and venture capital, while several funds adjusted asset allocations, restructured public equity mandates, and launched new manager searches. Leadership changes signal evolving investment strategies for 2025.

Major Private Equity Commitments Across Funds:
- Washington State Investment Board committed $1.5B across Advent International GPE XI ($500M) and a $1B co-investment in Evergreen Park Investment Fund
- Teachers' Retirement System of Illinois allocated $150M to Vista Foundation Fund V, $130M to THL Equity Fund X, and $200M to Pretium Residential Credit III, highlighting continued demand for buyouts and private credit
Increased Focus on Private Credit
- Virginia Retirement System made significant allocations, including $275M to Ares Special Opportunities Fund III and $200M to HPS Asset Value III
- Los Angeles City Employees' Retirement System recommended new benchmarks for its private credit portfolio as it continues to expand exposure
Real Assets and Infrastructure Investments on the Rise
- Arkansas Teacher Retirement System committed $50M each to AxInfra NA II and KKR Diversified Core Infrastructure Fund
- New York State Common Retirement Fund allocated $250M to Oaktree Power Opportunities Fund VII and $150M to Vision Ridge Partners Sustainable Asset Fund IV, demonstrating increased focus on energy transition and climate-related infrastructure
Pacing Plans Show Steady Long-Term Allocations
- Teachers' Retirement System of Oklahoma plans to commit $475M annually to private equity through 2027, with increased commitments likely thereafter
- San Jose Police and Fire Department Retirement Plan set a $375M pacing plan for FY 2025–26 across buyout, venture capital, private debt, real assets, and growth real estate
Venture Capital Gaining Traction
- Arkansas Teacher Retirement System added $80M across Franklin Park VC funds, while Texas County & District Retirement System committed $60M to Threshold Ventures V
Asset Allocation Shifts and Reviews Underway
- Imperial County Employees Retirement System adjusted its targets, reducing fixed income and increasing U.S. TIPS and cash
- Los Angeles Water & Power Employees' Retirement Plan redefined its real return asset class to include infrastructure (50% of allocation)
Emerging Market Equities and International Searches Expanding
- New York State Common Retirement Fund selected Nipun Capital to manage $400M in emerging markets equities
- Multiple plans, including Hartford and Alameda County ERS, reviewed or launched emerging markets equity manager searches
Leadership and Consultant Changes
- Arizona PSPRS appointed a new Deputy CIO, Alexander Dorf, joining from UPS’s pension plan
- Several funds (e.g., Vermont Pension Investment Committee, San Diego County ERA) reaffirmed or renewed their general consultant relationships