March 2024 Public Pension Brief

Overview

Dakota’s March 2024 Public Pension Brief highlights investment activity from over 1,300 public pension funds nationwide. The report captures billions in new commitments across private equity, private credit, venture capital, real estate, and infrastructure. Notable allocations include CalPERS’ $7B+ across Ares Senior Direct Lending, Global Infrastructure Partners V, and multiple buyout funds, Minnesota SBI’s $175M to Oaktree Real Estate, and New York State Common’s $275M to DigitalBridge Partners III. Private credit pacing plans expanded across Virginia, Texas, and Rhode Island systems, while several funds launched new manager searches. Leadership transitions, including Colorado PERA’s new CEO, signal evolving strategies shaping public pension investments.

Highlights from March:

Minnesota State Board of Investments made large commitments, including $150M to Blackstone Energy Transition Partners IV, $175M to Oaktree Real Estate Opportunities Fund IX, and $150M to Hudson Northern Shipping Fund V, signaling strong interest in energy transition and real assets.
New York State Common Retirement Fund allocated $275M to DigitalBridge Partners III and $200M to Carlyle Renewable & Sustainable Energy Fund II, reflecting growing focus on renewable energy infrastructure.
California Public Employees’ Retirement System (CalPERS) made over $7B in commitments across private equity, venture capital, private credit, and infrastructure, including $1.3B to Ares Senior Direct Lending Fund III and $850M to Global Infrastructure Partners V.
Virginia Retirement System and Texas Municipal Retirement System boosted private credit exposure with commitments exceeding $1B combined to opportunistic and direct lending strategies.
Chicago Teachers’ Pension Fund and other mid-sized plans initiated new manager searches for private equity, venture capital, and global fixed income, creating potential mandate opportunities.
Los Angeles County Employees’ Retirement Association committed $400M to Clearlake Capital Partners VIII and added $100M to PSC Accelerator II, emphasizing middle-market buyout strategies.
Austin City Employees’ Retirement System and Rhode Island State Pension updated pacing plans, targeting 10% private credit allocation and over $500M in 2024 private markets commitments, indicating continued growth in alternativesMarchMonthlyBrief.
Leadership transitions included Andrew Roth becoming CEO of Colorado PERA and Tim Deacon stepping down as CFO at Ontario Teachers’ Pension Plan, potentially signaling shifts in future investment decision-making.