The Board of Trustees at the Municipal Fire & Police Retirement System of Iowa (MFPRSI) recently moved to maintain its 20% allocation to private equity, and has also allocated USD 100 million to new private equity fund commitments in 2012. The retirement system was also an active investor in the asset class during 2011, with commitments totalling approximately USD 125 million. MFPRSI invests primarily in fund of funds vehicles and has long-standing relationships with fund of funds managers, HarbourVest Partners and Siguler Guff.
Preqin’s Investor Intelligence currently tracks 3,702 profiles of active investors in the private equity asset class. Public pension funds make up a substantial 12.7% this total, with average assets under management of approximately USD 13.2 billion.
MFPRSI’s target allocation to private equity of 20% of its total assets is significantly higher than the mean target allocation for North America-based public pension funds – approximately 7.6% of total assets. On average, public pension funds headquartered in North America have about 6.5% of total assets currently allocated to the private equity asset class. Preqin’s data suggests that public pension funds in this region will continue to be active in the private equity market over the coming year. Aside from MFPRSI, 46 North American-based public pension funds have set aside over USD 100 million to new commitments in the private equity asset class over the next 12 months.