June 2025 Public Pension Brief

Overview

Dakota’s June 2025 Public Pension Brief captures investment meeting activity from over 350 public pension funds, detailing billions in new commitments across asset classes. Highlights include CalPERS’ $1.2B allocation to private credit, New York State Common’s $500M commitment to KKR North America Fund XIV, and Washington State’s $600M investment in TPG Partners X. The report also tracks increased venture capital allocations to Khosla Ventures and Playground Ventures, strategic shifts toward U.S. equities and real assets, and notable leadership changes, including new appointments at STRS Ohio and Tennessee Consolidated Retirement System.

Continued Strength in Private Equity and Credit Commitments: Public pensions maintained a strong appetite for private markets, with billions committed to middle-market buyouts, growth equity, secondaries, and opportunistic credit strategies. Notable allocations included CalPERS’ $1.2B to private credit, New York State Common’s $500M to KKR North America Fund XIV, and Washington State’s $600M to TPG Partners X
Venture Capital Gains More Traction: Early-stage venture capital saw increased activity, with repeat commitments to Khosla Ventures (Illinois Municipal, Delaware PERS, New Mexico SIC) and Playground Ventures, signaling renewed interest in innovation-focused strategies
Asset Allocation Shifts Towards U.S. Equities and Real Assets: Several plans adjusted allocations:
- Denver Employees Retirement Plan reduced emerging markets exposure while boosting U.S. large-cap equity
- Austin Firefighters decreased private equity, introduced natural resources
- Nebraska Investment Council explored private credit and broader real assets exposure
Real Assets and Infrastructure Remain a Priority: Funds like New York State Common, San Diego County ERA, and Los Angeles Fire & Police made sizable commitments to core and opportunistic real estate, infrastructure, and climate transition funds, highlighting ongoing interest in long-term, tangible asset plays
Leadership Changes and Consultant Hires Signal Future Shifts: Multiple plans announced new executive appointments (e.g., STRS Ohio’s new executive director, Tennessee Consolidated’s new Deputy CIO) and consultant hires for private markets and general advisory roles, indicating potential strategic shifts in upcoming allocation cycles