December 2025 Public Pension Brief

Overview

Public pension investment activity accelerated in December, marked by large-scale private markets allocations, particularly across private equity, private credit, infrastructure, and real assets. Several major systems—including New Mexico SIC, Virginia Retirement System, Indiana Public Retirement System, and Pennsylvania PSERS—executed sizable commitments and portfolio reallocations, while others advanced 2026 pacing plans and infrastructure implementation frameworks. Manager oversight remained a key theme, with multiple funds updating watch lists, terminating legacy mandates, or replacing long-standing managers. Asset allocation adjustments and consultant changes were also active, signaling continued focus on portfolio structure and governance heading into 2026. Internationally, global plans maintained steady infrastructure and real asset exposure, while senior investment and executive leadership updates continued across U.S. and non-U.S. systems.

Highlights from December

Arkansas Teacher Retirement System approved over $240M in real estate and private equity commitments, including $100M to Realty Income U.S. Core Plus Fund, and adopted a strategic shift to increase its private credit allocation by 5% while reducing real assets.
New Mexico State Investment Council committed more than $1.2B across private credit, real estate, and venture capital, led by $300M to Bell Partners Growth & Income Fund and $300M to Silver Rock Core Lending Strategy (including co-investments).
Indiana Public Retirement System reallocated $2B within commodities, committing $1B each to Parametric Gold and PIMCO CommoditiesPlus while terminating legacy commodity mandates and placing several managers, including Baillie Gifford, on watch.
Los Angeles City Employees’ Retirement System approved over $400M in new commitments across private equity, private credit, real estate debt, and venture capital, and advanced its infrastructure implementation plan ahead of 2026 manager searches.
Teacher Retirement System of Texas committed nearly $200M across private equity and real estate, including $125M to Asana Partners Fund IV and $69M to Riverstone Iris Continuation Fund.
Pennsylvania Public School Employees’ Retirement System approved more than $800M in commitments, including $400M to HarbourVest co-investment vehicles and $250M to value-add real estate strategies.
Virginia Retirement System committed $800M in December, highlighted by $300M to Charlesbank XI, $150M to Lead Edge Capital Fund VII, and $350M to Garda Fixed Income Relative Value Opportunities Fund.
Public Employees’ Retirement System of Mississippi approved four $150M core infrastructure mandates with Blackstone, Brookfield, EQT, and JP Morgan, and replaced Baillie Gifford with MFS for its $870M international equity portfolio.
California State Teachers’ Retirement System appointed Nick Abel as Investment Director for Sustainable Investment and Stewardship Strategies, strengthening leadership across climate and sustainability initiatives.
Several systems, including Indiana PRS, Alaska Retirement Management Board, and Chicago Metropolitan Water Reclamation District, updated manager watch lists in December due to performance or organizational changes.