January 2025 Public Pension Brief

Overview

Dakota’s January 2025 Public Pension Brief provides a snapshot of investment activity from over 350 public pension funds nationwide. Highlights include Michigan State Investment Board’s $800M+ in new commitments, major allocations from Los Angeles County ($1.8B) and New York State Common ($2B co-investment fund), and Teacher Retirement System of Texas’ $1.5B to real estate, buyouts, and energy strategies. Private credit remained a strong focus with large allocations to distressed, direct lending, and opportunistic strategies, while venture capital commitments rose across multiple plans. The report also tracks asset allocation changes, active manager and consultant searches, and new CIO appointments shaping future investment strategies.

Michigan State Investment Board committed over $800M across private credit, private equity, infrastructure, and hedge funds, including $225M to Blackstone Capital Opportunities Fund V and $150M to TPG Rise Climate II
Los Angeles County Employees’ Retirement Association made large allocations, including $500M to Siguler Guff & Company (Distressed Credit) and $775M to Centerbridge Partners
New York State Common Retirement Fund approved $2B for a new co-investment fund alongside additional commitments to private equity and credit strategies
Teacher Retirement System of Texas allocated $1.5B to real estate, buyouts, and energy-focused funds, with commitments to Blue Owl Real Estate ($400M) and Northampton Capital Partners ($150M)
Venture capital activity remains strong with multiple funds, including Top Tier Venture Velocity Fund 5, Jungle Ventures V, and several early-stage commitments in New Mexico, Iowa, and Texas
Private credit commitments grew across multiple systems, such as Arbour Lane ($175M), Pathlight Capital Evergreen ($100M), and Oaktree customized credit mandates ($390M)
Strategic asset allocation shifts were approved by Austin City Employees’ Retirement and Ohio PERS, increasing private equity, private credit, and real assets, while trimming public equities
Leadership updates and consultant searches were active, with new CIO appointments at PSP Investments and Andra AP-fonden (AP2), and multiple RFPs issued for equity, fixed income, and private markets mandates