September 2024 Public Pension Brief

Overview

Dakota's September 2024 Pension Brief delivers insights from over 1,300 public pension plans, with billions in new allocations across private equity, credit, real estate, and infrastructure. Notable moves include CalPERS' $3B+ in private market commitments, CalSTRS’ expansion into AI-driven public equity strategies, and New York State Common’s $1B international ESG investment. Asset rebalancing, consultant shifts, and RFPs hint at evolving priorities. Several funds launched 2025 pacing plans, with co-investments and secondary strategies gaining momentum. Whether you're targeting new mandates or tracking market trends, this report gives you a pulse on where the capital is flowing and why.

Highlights From September:

CalPERS Commits Over $3B: California’s largest pension system deployed billions across private equity, private credit, and real assets, reinforcing its aggressive stance in alternatives.
CalSTRS Bets on AI & Public Equity: CalSTRS announced new strategies focused on AI-driven public equity and increased allocations to global managers, signaling innovation in portfolio construction.
New York State Common Goes Global: The fund committed $1B to ESG-focused and international private equity mandates, highlighting a strategic global pivot.
Private Credit Maintains Momentum: Multiple pensions—including Texas TRS and San Bernardino—expanded allocations to opportunistic and structured credit vehicles.
2025 Pacing Plans Launched: Systems like LA Fire & Police and Fairfax County outlined private equity pacing plans, setting clear intent for continued private market deployment.
Consultant Shifts & Mandates: Several plans issued RFPs or made consultant changes (e.g., Pasadena, SDCERA), potentially opening new windows for asset manager engagement.
Co-Investments & Secondaries Rise: Pensions emphasized greater exposure to co-investments and secondaries to drive cost-efficiency and liquidity.
Infrastructure & Real Estate Grow: ESG-tied infrastructure and niche real estate strategies (e.g., cold storage, senior housing) attracted growing attention from multiple public systems.