Key Takeaways
- • Global pension funds in aggregate held private equity allocations above their median target in Q1 2025, with a median actual allocation of $330.3 million versus a median target of $306.8 million, a $23.5 million overallocation across 298 funds, according to S&P Global Market Intelligence.
- • 174 of the 298 pension funds were overallocated to private equity, while 108 were underallocated.
- • CalSTRS recorded the largest overallocation at $7.49 billion, followed by Montreal-based Public Sector Pension Investment Board at $6.02 billion.
- • Mexico's Afore XXI was the largest underallocated fund, $8.25 billion short of its $10.99 billion target, with Sweden's Sjunde AP-fonden second at a $5.20 billion allocation versus a $13.01 billion target.
- • CalPERS held the largest private equity allocation at $90.37 billion, followed by CalSTRS at $53.88 billion.
Summary
Global pension funds in aggregate were above their median target allocation to private equity in the first quarter of 2025, according to S&P Global Market Intelligence data. Across 298 pension funds, the median target allocation was $306.8 million and the median actual allocation was $330.3 million, a median overallocation of $23.5 million.
The split across the sample was uneven. Of the 298 funds, 174 were overallocated to private equity and 108 were underallocated. Among the overallocated funds, California State Teachers' Retirement System (CalSTRS) had the largest excess at $7.49 billion, and Montreal-based Public Sector Pension Investment Board ranked second with a $6.02 billion overallocation. On the underallocated side, Mexican fund Afore XXI SA de CV was $8.25 billion short of its $10.99 billion target, and Sweden's Sjunde AP-fonden held $5.20 billion in private equity against a $13.01 billion target.
By absolute allocation size, the California Public Employees' Retirement System (CalPERS) led with $90.37 billion in private equity, followed by CalSTRS at $53.88 billion. At the other end, Chattanooga General Pension Fund, Texas Abilene Firemen's Relief & Retirement Fund and Burlington Employees' Retirement System each held $1 million, the smallest allocations in the dataset.
S&P Global notes that allocation imbalances carry greater significance if public markets enter a sustained decline, since falling public valuations can push private markets above target weights through the denominator effect. An overallocation of this kind can restrict a pension fund's ability to commit to additional private assets.
The split across the sample was uneven. Of the 298 funds, 174 were overallocated to private equity and 108 were underallocated. Among the overallocated funds, California State Teachers' Retirement System (CalSTRS) had the largest excess at $7.49 billion, and Montreal-based Public Sector Pension Investment Board ranked second with a $6.02 billion overallocation. On the underallocated side, Mexican fund Afore XXI SA de CV was $8.25 billion short of its $10.99 billion target, and Sweden's Sjunde AP-fonden held $5.20 billion in private equity against a $13.01 billion target.
By absolute allocation size, the California Public Employees' Retirement System (CalPERS) led with $90.37 billion in private equity, followed by CalSTRS at $53.88 billion. At the other end, Chattanooga General Pension Fund, Texas Abilene Firemen's Relief & Retirement Fund and Burlington Employees' Retirement System each held $1 million, the smallest allocations in the dataset.
S&P Global notes that allocation imbalances carry greater significance if public markets enter a sustained decline, since falling public valuations can push private markets above target weights through the denominator effect. An overallocation of this kind can restrict a pension fund's ability to commit to additional private assets.
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