October 2024 Public Pension Brief

Overview

Dakota's October 2024 Pension Brief captures insights from over 1,300 public pension systems, showcasing billions in new commitments across private equity, private credit, real estate, and infrastructure. Major allocators like CalSTRS, NY State Common, and Texas TRS led the charge, while mid-sized funds launched updated 2025 pacing plans. Private credit saw strong inflows into distressed, structured, and direct lending vehicles. Real estate remained a top allocation, particularly value-add and opportunistic strategies. Co-investment programs expanded, global mandates rose, and several consultant and leadership changes signaled evolving priorities. Download the full report to see how public pensions are allocating—and where capital is heading next.

Highlights From October:

Massive Private Market Commitments: Public pensions like CalSTRS, CalPERS, Texas TRS, and NY State Common committed billions to private equity, real estate, and private credit, reinforcing strong demand for alternatives.
Real Estate Gains Momentum: Dozens of real estate commitments—especially value-add and opportunistic funds—were recorded, with notable activity from Teacher Retirement System of Texas and NY State Common.
Private Credit Allocations Expand: Michigan, Virginia, Alameda, and others made large allocations to distressed, structured credit, and direct lending funds, signaling a shift toward yield and downside protection.
Pacing Plans for 2025 Launched: Plans such as Orange County, San Joaquin, and Chicago Teachers laid out updated pacing plans for private equity and credit commitments heading into 2025.
Growing Co-Investment Strategies: Multiple pensions, including Indiana PRS and LACERA, emphasized co-investments to reduce fees and gain exposure to high-conviction assets.
Leadership & Consultant Updates: Several staff transitions occurred (Rest Super, Fairfax, Indiana PRS), along with strategic shifts in consultant roles and manager terminations.
Infrastructure & Global Mandates Increase: Infrastructure was a top theme, with commitments from CDPQ, Oregon, Indiana, and others reflecting strong global diversification.
Venture Capital & Secondaries Attract Niche Interest: Select funds like Spark Capital, Antler, and Kline Hill Partners drew support, suggesting pensions remain cautiously active in early-stage and secondary strategies.