Massachusetts' main public pension fund has proven better than any other when it comes to investing in private equity.
The Massachusetts Pension Reserves Investment Management Board has enjoyed a 15.4% annualized return on its p.e. investments over the past 10 years, and 9.1% over the past five, according to the Private Equity Growth Capital Council. The lobbying group looked at 146 U.S. public pensions with at least $1 billion in p.e. assets to come up with the ranking.
The list accounts for performance through the second half of last year. Since then, MassPRIM's $6.1 billion p.e. portfolio's numbers have gotten even better, posting an annualized return over the past decade of 17.7%.
The top 10 public pensions by private-equity returns were rounded out by the Los Angeles County Employees Retirement Association, Teacher Retirement System of Texas, Houston Firefighters' Relief and Retirement Fund, Minnesota State Board of Investment, Iowa Public Employees' Retirement System, San Francisco Employees' Retirement System, Utah Retirement System, Pennsylvania Public School Employees' Retirement System and Contra Costa County Employees' Retirement System.
None of the best-performing p.e. portfolios were among the biggest, however: The country's largest public pension fund, the California Public Employees' Retirement System, has the biggest p.e. investment at $34.2 billion, followed by the California State Teachers' Retirement System at $22.6 billion and the Washington State Department of Retirement Systems at $16.1 billion.