February 2024 Public Pension Brief

Overview

Dakota’s February 2024 Public Pension Brief provides a snapshot of investment activity from over 1,300 public pension funds nationwide. The report highlights billions in new commitments across private equity, private credit, real estate, infrastructure, and venture capital strategies. Notable allocations include New Jersey Division of Investments’ $500M to StepStone Real Assets, Virginia Retirement System’s $1.85B across infrastructure and multi-asset funds, and Washington State’s $200M to General Catalyst and $100M to Blue Torch Credit. Several plans, including Arkansas Teacher Retirement System and Illinois Municipal, adjusted asset allocations, launched manager searches, and introduced new pacing plans, signaling continued growth in alternative investments

Highlights from February:

New Jersey Division of Investments committed $500M to StepStone Real Assets and $414M to Blackstone Tactical Opportunities, expanding its infrastructure and private credit exposure.
Virginia Retirement System approved $1.85B across infrastructure, oil and gas, global equities, and multi-asset strategies, including $100M to DigitalBridge Partners III and $200M to PGIM Energy Separate Account.
Washington State Investment Board allocated $200M to General Catalyst XII (Venture Capital) and $100M to Blue Torch Credit Opportunities III (Private Credit).
New York State Teachers’ Retirement System committed $830M across middle-market buyouts, opportunistic credit, and co-investment partnerships.
Florida State Board of Administration made Q4 2023 commitments exceeding $2B, including $1B to Morgan Stanley Global Equity and $200M to Chambers Energy Capital V.
CPP Investments deployed over $400M across Asia-focused buyouts and healthcare private equity funds, including $240M to TPG Partners IX.
Arkansas Teacher Retirement System rebalanced its asset allocation, reducing public equities by 5% and adding 5% to fixed income while committing to EnCap Energy Transition Fund II ($50M).
Multiple systems, including Boston Retirement System and Alaska Retirement Management Board, issued RFPs for private debt, global equity, and consulting mandates, signaling new mandate opportunities.