IPERS Reveals Private Market Investment Plans for 2025, Selects Five Absolute Return Managers
The Iowa Public Employees’ Retirement System (IPERS) has announced its private market investment plans for 2025, as well as the selection of five absolute return managers to oversee these investments. This move is part of IPERS’ ongoing efforts to diversify its investment portfolio and generate higher returns for its members.
According to IPERS, the private market investments will focus on alternative assets such as private equity, real estate, and infrastructure. These investments are expected to provide higher returns and lower volatility compared to traditional public market investments.
IPERS has selected five absolute return managers to oversee these investments, including Blackstone, KKR, Apollo Global Management, Carlyle Group, and TPG. These managers have a proven track record of delivering strong returns in the private market and will work closely with IPERS to identify and execute investment opportunities.
The decision to increase private market investments comes as IPERS faces challenges in meeting its long-term return target of 7%. With interest rates remaining low and the stock market experiencing high volatility, IPERS believes that private market investments offer a more stable and potentially lucrative option for its members.
IPERS currently has over $35 billion in assets under management and serves over 350,000 current and former public employees in Iowa. The system has a strong track record of delivering solid returns for its members, with an average annual return of 8.5% over the past 10 years.
The selection of these five absolute return managers is a significant step towards achieving IPERS’ long-term investment goals. By diversifying its portfolio and tapping into the potential of the private market, IPERS aims to continue delivering strong returns for its members and ensuring the long-term sustainability of the retirement system.
This move also reflects the growing trend among pension funds to increase their exposure to alternative assets in search of higher returns. As more pension funds turn to private market investments, it is expected that competition for top-performing managers will intensify, potentially driving up fees and making it more challenging for smaller funds to access these opportunities.
In conclusion, IPERS’ private market investment plans for 2025 and the selection of five absolute return managers demonstrate the system’s commitment to delivering strong returns for its members. By diversifying its portfolio and tapping into the potential of the private market, IPERS is taking proactive steps to ensure the long-term sustainability of the retirement system. However, as the competition for top-performing managers intensifies, it will be crucial for IPERS to carefully monitor fees and ensure that these investments continue to deliver value for