March 2025 Public Pension Brief

Overview

Dakota’s March 2025 Public Pension Brief provides a detailed look at investment activity across more than 350 public pension funds nationwide. The report highlights record-breaking allocations from CalPERS exceeding $10B, with major commitments to private equity, infrastructure, and venture capital. Other large systems, including Oregon PERS, New York State Common, and Connecticut Retirement Plans, also made significant investments in buyout, growth, and private credit strategies. Venture capital funding saw strong momentum, particularly in technology-focused funds, while infrastructure and energy transition projects attracted sizable commitments. The report also covers strategic asset allocation changes, active manager searches, and leadership updates shaping future pension investment trends

Record-Breaking Allocations from CalPERS: California Public Employees’ Retirement System disclosed over $10B in commitments, including large allocations to Veritas Capital Fund IX ($400M), KKR Global Infrastructure Investors V ($500M), and multiple venture capital funds focused on technology and climate
Major Activity in Private Equity and Growth Funds: Oregon PERS, Connecticut Retirement Plans, and New York State Common made significant commitments to KKR North America Fund XIV, Insight Partners XIII, Stellex Capital Partners III, and other buyout/growth vehicles
Private Credit Momentum Accelerates: Several funds increased exposure to private credit strategies, including CalPERS’ $1.2B to OHA Senior Lending, Pennsylvania SERS’ $150M to ISQ Infrastructure Credit Fund II, and Michigan’s $75M to Blackstone Co-Invest
Infrastructure and Real Assets in Focus: Commitments to energy transition and data center infrastructure are growing, with Los Angeles Fire & Police setting a $500M 2025 infrastructure pacing plan and Pennsylvania SERS committing $350M across global infrastructure funds
Venture Capital Sees Strong Support: Multiple Lightspeed Venture Partners funds secured commitments from Texas County & District, Orange County ERS, and CalPERS, showing continued interest in early-stage tech and innovation investments
Strategic Asset Allocation Changes Across States: North Carolina, Arizona State Retirement System, and Ohio STRS adjusted equity and credit allocations, shifting towards private credit and liquid alternatives to enhance returns and manage risk
Consultant and Manager Searches Active Nationwide: Dozens of RFPs and manager searches were issued in March, covering private debt, core fixed income, emerging markets equity, and absolute return strategies, signaling upcoming mandate opportunities
Leadership Updates Driving Strategy Evolutions: Key executive transitions, such as Terrill Sanchez stepping down from PSERS and Ty Powers rejoining NC as Investment Director, suggest shifts in oversight and long-term planning for several large systems