Key Takeaways
- • The American Investment Council (AIC) released a video featuring leaders from four public pension systems explaining why they allocate to private equity, alongside its annual 2025 public pension study.
- • Massachusetts PRIM reported its private equity portfolio ranked 4th of 200 in AIC's study, with a 16.88% return versus a 13.45% median, and said private equity is its top-performing asset class over the long term.
- • Ohio SERS said private equity is its highest-returning asset class over the past ten years, ranks second on AIC's 10-year list, and that its private equity allocation has risen to 14%.
- • Vermont Pension Investment Commission and New Mexico PERA both reported top rankings in the study, with New Mexico PERA ranked #9 for the second consecutive year.
Summary
The American Investment Council (AIC) has released a new video featuring public pension officials explaining their rationale for private equity investment, published alongside its annual 2025 public pension study. According to the AIC, the study provides fresh data on private equity's performance record across public pension plans. Seven officials from top-performing pensions contributed to the report, and four of their statements are featured in the video.
Massachusetts' Pension Reserves Investment Management Board (PRIM) ranked 4th of 200 in the study, with a private equity return of 16.88% against a median of 13.45%. Executive Director and Chief Investment Officer Michael G. Trotsky, CFA, said the result reflects the team's industry knowledge and rigorous selection and monitoring. He described private equity as PRIM's top-performing asset class over the long term, serving more than 300,000 current and future retirees.
In Vermont, Chief Investment Officer Eric Henry said the Vermont Pension Investment Commission topped the list for a second consecutive year. He credited the private equity program with supporting members of the state employee, teacher, and municipal employee retirement systems, and named consultant RVK for its work on implementation.
Ohio's School Employees Retirement System (SERS) reported that private equity has been its highest-returning asset class over the past ten years and longer. Chief Investment Officer Farouki Majeed said the allocation has risen steadily to 14%, and that SERS' 10-year private equity returns rank second in AIC's top ten list. New Mexico PERA, according to Investment Director Kate Brassington, was named the #9 ranked pension fund for the second year running and said it aims to selectively partner with top managers, noting that dispersion of returns in private equity can be wide.
The video and study are presented by AIC as evidence of private equity's consistent performance among public pensions, though the figures cited are self-reported by the pension officials and the AIC study rankings.
Massachusetts' Pension Reserves Investment Management Board (PRIM) ranked 4th of 200 in the study, with a private equity return of 16.88% against a median of 13.45%. Executive Director and Chief Investment Officer Michael G. Trotsky, CFA, said the result reflects the team's industry knowledge and rigorous selection and monitoring. He described private equity as PRIM's top-performing asset class over the long term, serving more than 300,000 current and future retirees.
In Vermont, Chief Investment Officer Eric Henry said the Vermont Pension Investment Commission topped the list for a second consecutive year. He credited the private equity program with supporting members of the state employee, teacher, and municipal employee retirement systems, and named consultant RVK for its work on implementation.
Ohio's School Employees Retirement System (SERS) reported that private equity has been its highest-returning asset class over the past ten years and longer. Chief Investment Officer Farouki Majeed said the allocation has risen steadily to 14%, and that SERS' 10-year private equity returns rank second in AIC's top ten list. New Mexico PERA, according to Investment Director Kate Brassington, was named the #9 ranked pension fund for the second year running and said it aims to selectively partner with top managers, noting that dispersion of returns in private equity can be wide.
The video and study are presented by AIC as evidence of private equity's consistent performance among public pensions, though the figures cited are self-reported by the pension officials and the AIC study rankings.
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