AIC’s annual study has found that private equity has been the highest-returning asset class in public pension portfolios every year since 2012. Nearly nine in ten public pensions studied invest in private equity, underscoring its longstanding role in supporting retirement security for public servants across the country.
By The Numbers:
- 13.2% – The private equity median annualized return over a 10-year period, higher than every other asset class, including public equity, real estate, and fixed income.
- 34 Million – The number of U.S. public sector workers and retirees served by the pension funds in the study.
- 86% – The share of public pension funds nationwide that invest a portion of their portfolio in private equity.
- 88% – The share of institutional investors surveyed by Preqin who plan to increase or maintain their private market investments over the next year.
Top Ten Public Pension Funds by Private Equity Returns:
- Vermont Pension Investment Commission – 16.61%
- Ohio School Employees Retirement System – 16.27%
- Massachusetts Pension Reserves Investment Trust – 16.18%
- West Virginia Investment Management Board – 16.12%
- Tennessee Consolidated Retirement System – 16.04%
- City of Baltimore Employees’ Retirement System – 15.80%
- Nebraska Investment Council – 15.40%
- The Florida Retirement System – 15.33%
- Public School and Education Employee Retirement Systems of Missouri – 15.20% (tie)
- Illinois State Board of Investment – 15.20% (tie)