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 January, Dakota tracked a total of approximately $9.1 billion across 111 investments. This is a 12.5% decrease compared to the $14.6 billion in activity that we tracked in January. 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 January. By the end of this, you'll have a better understanding of the Public Pension commitments made in the month of January.
The top allocators during the month were:
- New York State Common Retirement Fund placing $1.4 billion
- Connecticut Retirement Plans & Trust Funds disclosed $925 million in new commitments
- New York City Employees’ Retirement disclosed $905 million
Asset Classes:
$3.0 billion moved to Private Equity across 46 investments which accounts for approximately 33% of commitments. Private Credit saw $2.8 billion in commitments, 31% of total commitments across 21 investments. Real Assets took in 19% of commitments with $1.7 billion flowing into the asset class between 16 investments. In Real Estate we tracked $1.2 billion across 18 investments,14% of commitments. Also of note, we tracked four Hedge Fund commitments totaling $315 million.
Sub-Asset Classes:
Stemming from the private equity asset class, buyouts made up about 19% of commitments, this includes $1.7 billion across 24 lower middle market, middle market, and large buyout funds. It is worth noting that growth equity funds made about 6% of commitments with $548 million across 8 investments. Within private credit, Direct Lending accounted for 10% of commitments with $915 million between 9 investments. Additionally, Opportunistic made up 8% of commitments with $775 million across 6 investments. Regarding Infrastructure, $1.4 billion was placed across 18 investments making up 15% of commitments.
Looking at the top allocations this month:
- New York State Common Retirement Fund
- $375M to Fundamental Empire Fund (Private Credit)
- New Mexico State Investment Council
- $350M to OHA Senior Private Lending Fund (Private Credit)
- Mississippi Public Employees’ Retirement
- $300M to Blue Owl Private Credit
- $300 million to GCM Grosvenor Private Credit
- Texas Teachers Retirement System
- $250 million to BDP Investment Vehicles Master Commitment (Real Estate)
Terminations reported in January:
- Massachusetts Bay Transportation Authority Retirement terminated Sands Capital (Global Growth Equity)
- New York State Common Retirement terminated the Strategic Global Advisors global equity fund ($237M)
- Rhode Island State Pension approved a full redemption of the Wellington Emerging Market Debt fund
- Cambria County Employees’ Retirement terminated the Mondrian International Equity account ($5.4M)
- San Francisco ERS terminated the Springs Capital public equity account and the East Lodge Capital Credit Opportunities Fund
- Chicago Municipal Employees Annuity & Benefit Fund terminated the opportunistic fixed income mandate with Crescent Capital
- Louisiana State Police Retirement terminated Emerging Markets Equity manager, Vontobel, and hired GQG as a replacement
- 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
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