May 2024 Public Pension Brief

Overview

Dakota's May 2024 Pension Brief delivers a detailed roundup of investment meeting minutes from over 1,300 public pension plans nationwide. It captures over $13 billion in new fund commitments across private equity, real estate, private credit, and infrastructure strategies. Notably, numerous asset allocation shifts and emerging manager searches signal dynamic rebalancing and diversification efforts. Institutional investors, consultants, and managers will find valuable intelligence on mandates, RFPs, and pacing plans. Whether you're seeking leads, gauging market sentiment, or tracking capital flows, this issue provides an unmatched window into how major pensions are navigating market conditions and repositioning portfolios.

Highlights From May:

Over $13 billion in new commitments across asset classes, including CalSTRS, NYSTRS, and WSIB, showcasing strong continued deployment by major pensions.
Emerging markets under pressure: Several plans reduced or eliminated EM allocations, favoring U.S. small-cap and developed international equity.
Private equity dominates: Numerous buyout and co-investment mandates were approved, including $750M in pacing from ERS Texas and major allocations by Connecticut and Massachusetts PRIM.
Major real estate reallocations: LACERS and LACERA approved detailed pacing plans targeting core, value-add, and opportunistic strategies, while CalSTRS adjusted RE weightings.
Infrastructure remains hot: Commitments to funds like KKR Global Infrastructure V, Partners Group, and SDC Capital highlight continued institutional interest.
Private credit momentum grows with mezzanine, distressed, and direct lending strategies receiving substantial allocations from Florida SBA, OPERS, and Connecticut.
Staff and consultant updates: Several systems, including CalSTRS and Teacher Retirement System of Texas, announced leadership changes in CIO and deputy roles.
Manager terminations and RFPs signal movement: Multiple RFPs launched for consultants and asset managers, with over a dozen manager changes tracked.