In the month of July, Dakota tracked a total of approximately $9.6 billion across 100 investments. 31 individual pension funds reported commitments during the month.
In this article, we're summarizing Public Pension activity for July 2023. By the end of this article, you'll walk away knowing top allocations made, breakdown of asset and sub-asset classes, and the top shifts and terminations.
Top allocations:
- New York State Common Retirement Fund allocated $1.3 billion
- Connecticut Retirement Plans & Trust Funds allocated $910 million
- State of Michigan Investment Board allocated $906 million
- Indiana Public Retirement System allocated $592 million
Asset Classes:
Private Equity took in approximately 41% of commitments, Private Credit maintained second with 22% of commitments, Real Estate took in 16% of commitments, Real Assets received about 10% of commitments.
Sub-Asset Classes:
Stemming from the private equity asset class, buyouts made up about 14% of commitments, this includes lower middle market, middle market, and large buyout funds. Also in private equity, it is worth noting that Venture Capital funds made up 11% of commitments. In private credit, Opportunistic Credit made up 14% of commitments. Infrastructure and Value-add Real Estate each made up 10% of total commitments.
Top Shifts:
- NY Common committed $1B to Khosla Ventures Excelsior; $450M to EQT Infrastructure VI; $450M to TA XV
- State of Michigan Investment Board committed $326M to SMP Data Center, LLC
- Connecticut Retirement Plans & Trust Funds committed $300M to CT-Top Tier Venture FoF
Also of note were two Hedge Fund commitments from San Francisco Employees’ Retirement System
- $50M was committed to Torus Feeder 2
- $25M was committed to Prism Feeder 2
- Both funds managed by Qube Research & Technologies based in Hong Kong
Terminations:
- Dallas Fort Worth Airport Board Retirement fully redeemed the JP Morgan Alerian Exchange-Traded Notes and the Fred Alger Capital Appreciation Fund
- San Diego City ERS terminated the Stone Harbor Emerging Market Debt fund as part of the restructuring of the Return-Seeking Fixed Income portfolio out of Emerging Market debt into Multi-Asset Credit
- Delaware County Retirement approved liquidating the PGIM short duration account
- Alaska Permanent Fund Corporation fully redeemed both Risk parity managers, PanAgora and Bridgewater
- West Palm Beach Police Pension Fund is liquidating the JP Morgan Special Situation Fund
- Employees Retirement System of Milwaukee County are expecting full redemptions of the ABS Hedge FoF and the UBS Core Real Estate Fund; previously reduced HF target to 6% from 9%
For more insights into public pensions and monthly summaries, tune into our next Dakota Live! Call.
