CalPERS tops U.S. public pension funds in private equity returns for fiscal year

CalPERS, the nation's largest pension fund serving more than 2 million beneficiaries, has secured top-tier performance in private equity, outpacing peer institutions across the U.S. public pension fund landscape. According to a Pensions & Investments analysis, CalPERS earned the strongest private equity returns among the largest U.S. public pension funds for fiscal year 2024-25, posting a 14.3% return and surpassing 74 comparable large public pension funds in this critical asset class.

The fund's overall portfolio delivered solid performance for the fiscal year ended June 30, 2025, with a preliminary net investment return of 11.6%. Within this context, private equity has become a standout performer, reflecting both the asset class's inherent characteristics and CalPERS' strategic execution. As of September 30, 2025, the private equity program reported a since-inception net IRR of 11.3% and a net multiple of 1.5x, metrics that underscore the durability of returns generated through the fund's alternative investment strategy.

CalPERS' private equity success builds on a deliberate turnaround that has evolved since 2022, incorporating operational improvements and refined capital deployment strategies. The asset class has historically delivered exceptional results for CalPERS, with private equity outperforming public equity over the past 20 years and generating a 14.3% return in the most recent fiscal year. This performance reinforces private equity's position as one of CalPERS' top-performing asset classes and validates the fund's commitment to alternative investments as a core mechanism for delivering retirement security to its membership.

The pension fund's strategic approach emphasizes the long-term, illiquid nature of private equity investments—a characteristic well-suited to CalPERS' substantial asset base and multigenerational investment horizon. With current capital market assumptions assigning private equity a 20-year expected return midpoint of 7.6%, approximately 90 basis points higher than public equity, the asset class remains integral to CalPERS' overall return objectives and member benefit obligations.