Iowa Public Employees Retirement System plans to make no changes to its private equity allocation rate in 2024.
Many LPs remain overallocated to private equity due to the lingering effects of the denominator effect. The $40.2 billion Iowa system remains slightly over its PE target and is also shifting some of its focus to other alternative assets.
Iowa discussed its alternative assets pacing schedule at its December 7 board meeting. Buyouts reviewed board documents pertaining to the topic.
According to the presentation, Iowa plans to commit $700 million to private equity in 2024, the same amount as in 2023, as the system continues to “tap the brakes on commitments.”
According to the presentation, Iowa currently allocates 19.7 percent of its total fund to private equity, above its 17 percent target.
In 2021, Iowa committed $960 million to private equity. In 2022, the system committed more than $850 million, board documents said.
Iowa’s private equity program consists of commitments to funds of funds managed by Pathway Capital Management.
The system is also looking to up its private credit and real assets programs, both of which are underweight to their targets.
According to the presentation, Iowa also plans to commit $500 million to real assets.
A $200 million co-investment program for both private credit and real assets will be included in the total $1.2 billion going to the sectors, the presentation said.
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