Key Takeaways
- • U.S. public pension funds committed $100.9 billion to private equity strategies in 2025, representing a 24% increase from $81.2 billion in 2024, according to a Nasdaq eVestment report published in 2026.
- • CalPERS led pension commitments with $20 billion across 93 mandates in 2025, followed by CalSTRS ($9 billion across 58 commitments) and the New York State Common Retirement Fund ($8.2 billion across 46 commitments).
- • Advent International L.P. was the largest recipient of public pension capital, raising $4.6 billion from pension funds in 2025 through its GPE XI buyout fund and co-investment vehicles, with $109 billion in total AUM as of June 30.
- • Thoma Bravo L.P., a software-focused PE manager, ranked second with $3.8 billion raised from public plans including CalPERS, CalSTRS, and the New York State Common Retirement Fund, reporting $170 billion in total AUM.
- • Through the first half of 2026, public pension plans had already committed $31.9 billion to private equity, tracking toward another strong year despite a reported slowdown in PE distributions to limited partners.
Summary
U.S. public pension funds significantly expanded their private equity allocations in 2025, committing $100.9 billion to PE strategies despite ongoing challenges in the sector. The figure represents robust year-over-year growth of 24% compared to $81.2 billion in commitments during 2024, signaling continued institutional confidence in buyout strategies and alternative asset vehicles even as PE distributions to limited partners faced headwinds.
The largest public pension plans drove the capital deployment surge. California Public Employees' Retirement System (CalPERS) emerged as the sector's leading allocator, committing $20 billion across 93 separate mandates in 2025. CalSTRS followed with $9 billion deployed across 58 commitments, while the New York State Common Retirement Fund contributed $8.2 billion through 46 separate investments. These three mega-funds collectively accounted for approximately $37.2 billion of the year's total public pension PE commitments.
Advent International L.P. and Thoma Bravo L.P. captured the lion's share of pension capital raised from public plans. Advent International, managing $109 billion in assets as of June 30, secured $4.6 billion from public pension investors in 2025, primarily through its flagship GPE XI buyout fund and expanding co-investment vehicles that saw accelerated pension interest. Thoma Bravo, the software-focused manager with $170 billion in AUM, ranked second among PE managers by pension fundraising, raising $3.8 billion from major institutional LPs including CalPERS, CalSTRS, and New York State's pension fund.
The momentum shows no signs of abating. Through the first half of 2026, public pension funds had already committed $31.9 billion to private equity strategies, placing the sector on track for another substantial year of capital deployment. The co-investment vehicle trend highlighted particular growth, with 51 PE managers raising dedicated capital for co-investment opportunities alongside their flagship funds, demonstrating pension funds' appetite for both traditional buyouts and direct investment participation.
The largest public pension plans drove the capital deployment surge. California Public Employees' Retirement System (CalPERS) emerged as the sector's leading allocator, committing $20 billion across 93 separate mandates in 2025. CalSTRS followed with $9 billion deployed across 58 commitments, while the New York State Common Retirement Fund contributed $8.2 billion through 46 separate investments. These three mega-funds collectively accounted for approximately $37.2 billion of the year's total public pension PE commitments.
Advent International L.P. and Thoma Bravo L.P. captured the lion's share of pension capital raised from public plans. Advent International, managing $109 billion in assets as of June 30, secured $4.6 billion from public pension investors in 2025, primarily through its flagship GPE XI buyout fund and expanding co-investment vehicles that saw accelerated pension interest. Thoma Bravo, the software-focused manager with $170 billion in AUM, ranked second among PE managers by pension fundraising, raising $3.8 billion from major institutional LPs including CalPERS, CalSTRS, and New York State's pension fund.
The momentum shows no signs of abating. Through the first half of 2026, public pension funds had already committed $31.9 billion to private equity strategies, placing the sector on track for another substantial year of capital deployment. The co-investment vehicle trend highlighted particular growth, with 51 PE managers raising dedicated capital for co-investment opportunities alongside their flagship funds, demonstrating pension funds' appetite for both traditional buyouts and direct investment participation.
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