Key Takeaways
- • Public pensions committed nearly $7.7 billion to venture capital funds in 2023, a slight decline from the $8.5 billion tracked in 2022, according to Dakota.
- • California Public Employees' Retirement System (CalPERS) led all public pensions with approximately $2.3 billion in 2023 venture capital investments across 20 investments.
- • New York State Common Retirement Fund ranked second with about $1.1 billion across seven venture investments, followed by New Mexico State Investment Council at roughly $560 million across 19 investments.
- • The top 10 list spans large state retirement systems and smaller county and municipal plans, with investment amounts ranging from about $207 million to $2.3 billion.
- • Consultant lineups such as Meketa, RVK, Aksia, Wilshire and Hamilton Lane appear repeatedly across the ranked pensions, indicating a concentrated advisory landscape for venture allocations.
Summary
Dakota's analysis of 2023 activity finds that public pension funds in the United States directed nearly $7.7 billion into venture capital funds, down modestly from the $8.5 billion the firm tracked in 2022. The report frames this as part of a broader shift by pension systems toward alternative investments in pursuit of portfolio diversification and enhanced returns.
The ranking, ordered by investment amount, is led by the California Public Employees' Retirement System, which has roughly $500 billion in assets under management and committed approximately $2.3 billion to venture capital across 20 investments in 2023. Consultants listed for CalPERS include Wilshire and Meketa. The New York State Common Retirement Fund, with about $260 billion in AUM, placed $1.1 billion across seven investments, advised by RVK, Meketa, Aksia, Townsend and Mercer.
The New Mexico State Investment Council, with roughly $52 billion in AUM, committed $560 million across 19 venture investments, the highest deal count among the top three. The San Francisco Employees' Retirement System ($38 billion AUM) invested $350 million across eight funds, and the New Jersey Division of Investment ($96 billion AUM) committed $300 million across four investments.
The remaining entries include the Connecticut Retirement Plans and Trust Funds ($300 million, one investment), the Texas County & District Retirement System ($300 million, eight investments), Mass PRIM ($175 million, one investment), the Orange County Employees Retirement System ($235 million, eight investments) and the Illinois Municipal Retirement Fund ($207 million, seven investments). The list illustrates that commitment size and deal count do not always align, as several pensions with large asset bases made only a single venture investment.
The ranking, ordered by investment amount, is led by the California Public Employees' Retirement System, which has roughly $500 billion in assets under management and committed approximately $2.3 billion to venture capital across 20 investments in 2023. Consultants listed for CalPERS include Wilshire and Meketa. The New York State Common Retirement Fund, with about $260 billion in AUM, placed $1.1 billion across seven investments, advised by RVK, Meketa, Aksia, Townsend and Mercer.
The New Mexico State Investment Council, with roughly $52 billion in AUM, committed $560 million across 19 venture investments, the highest deal count among the top three. The San Francisco Employees' Retirement System ($38 billion AUM) invested $350 million across eight funds, and the New Jersey Division of Investment ($96 billion AUM) committed $300 million across four investments.
The remaining entries include the Connecticut Retirement Plans and Trust Funds ($300 million, one investment), the Texas County & District Retirement System ($300 million, eight investments), Mass PRIM ($175 million, one investment), the Orange County Employees Retirement System ($235 million, eight investments) and the Illinois Municipal Retirement Fund ($207 million, seven investments). The list illustrates that commitment size and deal count do not always align, as several pensions with large asset bases made only a single venture investment.
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