October 2023 Public Plan Commitment Summary

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 October, Dakota tracked a total of approximately $9.5 billion across 91 investments. This is a 47% decrease compared to the $18 billion in activity that we tracked in September. 33 individual pension funds reported commitments during the month.

In this article we are going over the top allocators, allocations, and terminations made in the month of October. By the end of this, you'll have a better understanding of the Public Pension commitments made in the month of October.

The top allocators during the month were:

• Texas Municipal Retirement System placing $2.5 billion
• California State Teachers’ Retirement System disclosed $2.2 billion in commitments
• New Mexico State Investment Council committed $1.2 billion
• New York State Common Retirement committed $825 million

Asset Classes: $4.9 billion moved to Private Equity which accounts for approximately 52% of commitments. In Real Estate we tracked $1 billion in activity ,11% of commitments. Real Assets took in 5.6% of commitments with $537 million flowing into the asset class. Private Credit saw $537 million in commitments, 3.6% of total commitments.

Sub-Asset Classes: Stemming from the private equity asset class, buyouts made up about 24% of commitments, this includes lower middle market, middle market, and large buyout funds. Also in private equity, growth equity funds made up 11.25% of total commitments in the month. It is worth noting that venture capital funds made about 4.2% of commitments with $405 million across 10 investments. Within real assets, infrastructure accounted for 4% of commitments. Related are energy private equity funds which saw three commitments totaling $185.6 million across three investments. In private credit, opportunistic credit made up 4.5% of commitments with $431.5 million across six investments.

Top allocations in October:

California State Teachers’ Retirement System

• $350 million to Clayton, Dubilier & Rice Fund XII (Private Equity)
• $300 million to TA XV (Private Equity)
• $250 million to Blackstone Capital Partners IX (Private Equity)

New York State Common Retirement Fund

• $300 million to Asana Partners Select Fund (Real Estate)
• $250 million to PSG VI (Private Equity)
• $175 million to 57 Stars Global Opportunity (Private Equity)

New Mexico State Investment Council

• $250 million to Silver Point Distressed Opportunity Institutional Partners II (Private Credit)
• $150 million to Copenhagen Infrastructure V (Real Assets)
• $150 million to Mercer Private Equity SMA (Private Equity)

Terminations reported in October:

• Colorado Fire & Police Pension Association terminated the Kabouter International SMID cap strategy ($65M)
• Maine Public Employees’ Retirement System approved redeeming the investment in FORT Global Contrarian

To explore more Public Pension Plans and industry turnover, start your free trial of Dakota Marketplace here.