May 2025 Public Pension Brief

Significant Private Equity Commitments Across Plans: Large allocations were made to major buyout funds:
- CPP Investments committed over $1B across Nordic Capital XI (€460M), Blackstone Asia III ($300M), and Trident X ($200M)
- California State Teachers' Retirement System (CalSTRS) disclosed multiple 2024 investments, including $350M to Summit Partners Growth Equity XII, $250M to Thoma Bravo Fund XVI, and several co-investments
Private Credit Activity Remains Strong: Many plans increased exposure to private credit:
- Teachers’ Retirement System of Oklahoma committed $400M to new private credit funds (Private Credit Fund O LLC and KKR Scissor-Tail)
- Rhode Island State Pension added $33M to TPG AG Asset Based Credit Evergreen Fund
Infrastructure and Real Assets Continue to Gain Traction: Plans expanded their infrastructure portfolios:
- Kansas PERS committed $140M to Brookfield Super-Core Infrastructure Partners
- NEST (UK) committed €530M ($596M) to a new infrastructure debt fund with IFM Investors
Venture Capital Allocations Rising: Venture capital continues to see attention:
- Los Angeles County Employees' Retirement Association invested $150M in early-stage funds (Primary Select Fund IV, PVP Fund V)
- Teacher Retirement System of Texas allocated $60M to Altimeter and $55M to Radical Ventures IV
Shift Toward Active Equity Management: The New Mexico State Investment Council is moving its U.S. public equities portfolio from 32% active to 50% active, increasing manager diversification and tracking error targets
Multiple Consultant and Manager Searches Underway: Several public pension funds launched RFPs or manager searches:
- Oklahoma Police Pension issued an RFP for a new investment consultant
- Arkansas PERS shortlisted six managers for an infrastructure secondaries mandate
Asset Allocation Adjustments: Strategic changes included:
- Arizona PSPRS shifting domestic equity to 27% (+3%) while trimming global private equity and fixed income
- Memphis Light, Gas & Water Corp reduced real estate exposure from 18% to 14%, increasing global fixed income
Leadership Changes Signaling Future Shifts
- Texas Municipal Retirement System appointed John Ritter as Head of Real Assets
- Rest Super (Australia) announced Michael Clancy as new CIO, starting August 2025