New Video: Public Pension Leaders on Why They Invest in Private Equity
WASHINGTON, D.C. – Today, the American Investment Council released a new video featuring leaders at public pension funds speaking about how private equity delivers strong returns and helps diversify retirement accounts for public servants.
Click here to view full on-camera remarks from:
- Jim Herrington – Private Equity Investment Officer, West Virginia Investment Management Board
- Kate Brassington – Investment Director, Public Employees Retirement Association of New Mexico (PERA)
- Farouki Majeed – Chief Investment Officer, School Employees Retirement System of Ohio
The American Investment Council also released our annual 2025 public pension study, which provides new data about private equity’s strong record of performance year after year. In the report, seven officials from top-performing pensions explained their investment strategy, including:
Massachusetts
Michael G. Trotsky, CFA, Executive Director and Chief Investment Officer, Massachusetts Pension Reserves Investment Management (PRIM): “We are pleased that AIC’s research has once again determined that MassPRIM’s private equity portfolio stands as one of the highest performing in the country. The rank of 4 out of 200 (its return of 16.88% outperforms the median private equity performance of 13.45%) reflects the team’s deep industry knowledge along with its rigorous selection and monitoring processes. These traits have positioned private equity as PRIM’s number one performing asset class over the long term and driven the industry-leading returns that are essential to secure retirement benefits for more than 300,000 current and future retirees in our state.”
Vermont
Eric Henry, Chief Investment Officer, Vermont Pension
Investment Commission: “We are thrilled with our private equity performance and honored to top the list for a second consecutive year. Vermonters, especially the members and beneficiaries of the Vermont State Employees’ Retirement, the Vermont State Teachers’ Retirement System, and the Vermont Municipal Employees’ Retirement System, stand on strong financial footing thanks, in part, to our private equity program. Our Commissioners have been stead supporters of the program. A special shout-out goes to Andy Cook of my team and consultant RVK for their efforts and diligence in implementation.”
Ohio
Farouki Majeed, Chief Investment Officer, School Employees Retirement System of Ohio:“Private equity has been the highest returning asset class in the Ohio SERS portfolio for the past ten years and longer, and has contributed to enhancing the funded ratio and sustainability of our pension fund. SERS allocation to private equity has steadily increased and now stands at 14%. We are gratified that SERS Private Equity returns for 10 years have been ranked in AIC’s top ten list over many years and is currently ranked second. Our team deserves credit for the execution of our private equity strategy, which has generated consistently superior returns.”
New Mexico
Kate Brassington, Investment Director, Public Employees Retirement Association of New Mexico (PERA): “New Mexico PERA is proud to be named as the #9 ranked pension fund for the second year running. This reinforces the importance of our private equity portfolio to our overall performance – our private equity portfolio has enhanced NM PERA’s ability to deliver on our mission to provide retirement security for our over 100,000 members. Staff embrace a culture of constant improvement to our processes and challenge of existing conventions. We aim to selectively partner with top investment managers that will help us achieve superior returns in a space where dispersion of returns can be wide, and we recognize our broader investment team and operations team, as well as our consultants, in this collaborative effort.”
West Virginia
Jim Herrington, Private Equity Investment Officer, West Virginia Investment Management Board: “There seems to be thousands, if not tens of thousands, of private businesses and corporate orphans run sub-optimally. Many people, not just the capitalists, benefit from the skillful application of management techniques, appropriate capital, and a playbook of possible solutions to improve businesses. The collective outcome doesn’t have to be a zero-sum game. Those are some of the things I love about PE Investing. Even with the gains in public equity in recent years, the ten-year returns of private equity are still stronger.”
Illinois
Dipesh Mehta, Executive Director & Chief Investment Officer, Illinois State Board of Investment: “ISBI is honored to be ranked among the top five plans in private equity performance for the fifth consecutive year, including three years as the nationwide leader. Our success is a direct result of our forward-looking investment strategy, disciplined fee structure, and the outstanding collaboration between our dedicated team and trusted partners. As we look to the future, we remain committed to continuing our work to deliver strong, consistent returns for the more than 182,000 beneficiaries we serve.”
Iowa
Greg Samorajski, Chief Executive Officer, Iowa Public Employees’ Retirement System:“IPERS has built a strong presence in the private equity space; the strategy represents about 20% of the value of the total fund. Our team of investment professionals is committed to success and mitigates risk by ensuring that the portfolio is diversified across industries, regions, and – most importantly – time to generate the positive results our stakeholders expect.”
Maryland
David A. Randall, Executive Director, Baltimore City Retirement Systems: “The City of Baltimore Employees’ Retirement System is a municipal plan that has seen the benefits of investing with smaller and newer managers. The system recognizes the value of differences and diversity and has taken the time to evaluate newer strategies that generate attractive risk-adjusted returns. We have focused on small and mid-cap opportunities and have built strong partnerships with managers that have delivered for our pension plan’s retirees and beneficiaries.”
Read the full 2025 Public Pension Study to learn more.
