Staying up to date and understanding public pension fund insights is critical for gaining investment industry knowledge and understanding fundraising trends. The insights in this article reveal current investment strategies and market impacts, providing a comprehensive view of large fund allocations and their influence on asset prices. They enable organizations to benchmark their performance against top public pension funds, facilitating better decision-making.
In the month of December, Dakota tracked a total of approximately $10.4 billion across 164 investments. This is a 28% decrease compared to the $14.6 billion in activity that we tracked in November. 60 individual pension funds or entities reported commitments during the month.
In this article we are going over the top allocators, allocations, and terminations made in the month of December. By the end of this, you'll have a better understanding of the Public Pension commitments made in the month of December.
The top allocators during the month were:
- New York State Common Retirement Fund placing $1.8 billion
- Maryland State Retirement & Pension System disclosed $1 billion in commitments
- Minnesota State Board of Investment approved $775 million in commitments
Asset Classes:
$4.4 billion moved to Private Equity across 84 investments which accounts for approximately 42% of commitments. Private Credit saw $3.2 billion in commitments, 31% of total commitments across 32 investments. In Real Estate we tracked $1.4 billion across 28 investments,14% of commitments. Real Assets took in 9% of commitments with $993 million flowing into the asset class between 16 investments. Also of note, we tracked four Hedge Fund commitments totaling $307 million.
Sub-Asset Classes:
Stemming from the private equity asset class, buyouts made up about 22% of commitments, this includes $2.3 billion across 41 lower middle market, middle market, and large buyout funds. It is worth noting that growth equity funds made about 9% of commitments with $944 million across 13 investments. Within private credit, opportunistic credit accounted for 13% of commitments with $1.4 billion between 9 investments. Additionally, Direct lending made up 9% of commitments with $983 million across 13 investments. Regarding Infrastructure, $800 million was placed across 10 investments making up 9% of commitments.
Looking at the top allocations this month:
- New York State Common Retirement Fund
- $600MB to KLIM Delta Excelsior Fund (Private Credit)
- $375M to PIMCO Specialty Finance Income Fund (Private Credit)
- $300M to Insight Venture Partners XIII (Private Equity)
- Indiana Public Retirement System
- $300M to a Direct Lending SMA managed by Barings
- $250M to Capstone Dispersion Master Fund (Hedge Fund)
- Maryland State Retirement & Pension System
- $250M to Whitehorse Liquidity Partners VI (Private Equity)
Terminations reported in December:
- New York State Common Retirement terminated the Ariel International Equity Fund ($345M)
- University of Alabama Endowment terminated Indaba Capital Partners, an event driven hedge fund strategy
- Colorado Fire & Police Pension Association terminated the Baillie Gifford Global Public Equity account ($31M)
- Tennessee Valley Authority Retirement System terminated the TCW emerging markets debt account
- Wayne County Employees’ Retirement terminated three equities managers:
- Earnest partners Domestic Equity Small Cap Growth
- Reinhart Partners Domestic Equity Mid Cap Growth
- Hardman Johnston Global Advisors International Growth
To explore more Public Pension Plans and industry turnover, book a demo of Dakota Marketplace.
