Donaldson Company

The pension is a defined-benefit plan sponsored by Donaldson Company, Inc. (NYSE: DCI), the $3.6 billion filtration manufacturer. Investment decisions are made by the plan's fiduciaries, who can draw on the parent company's technical due-diligence capabilities when evaluating startups in adjacent industrial and materials science sectors. The plan's venture allocation is distinct from corporate venture capital — it pursues financial returns for plan participants, not strategic M&A pipeline for the manufacturer.

The plan focuses on venture capital and growth equity, with an emphasis on early-stage and Series A through C companies. Sectors of interest include advanced filtration, clean energy storage, emissions monitoring, and industrial IoT. The pension can hold positions for longer durations than a typical VC fund, aligning with its liability-driven investment horizon.

Ultimate fiduciary authority rests with the pension plan's investment committee, which reports through Donaldson's corporate governance structure. Tod Carpenter, as Executive Chairman, and Rich Lewis, as CEO, provide senior leadership continuity from the sponsor. Board members with operational and financial expertise — including executives from Cargill, The Toro Company, and Securian Financial — inform investment policy.

The pension allocates primarily through commingled venture capital and growth equity funds, selecting managers with domain expertise in industrial technology and sustainability. It may consider direct co-investment opportunities alongside trusted GPs, particularly when a startup's technology aligns with Donaldson's filtration and separation science knowledge base.

Donaldson joined the S&P High Yield Dividend Aristocrat Index in 2024, reflecting 30 consecutive years of dividend growth. Strong operating cash flows support both shareholder returns and pension contributions. The plan's funded status benefits from Donaldson's consistent profitability and disciplined balance-sheet management, reducing reliance on outsized investment returns to meet obligations.

The pension avoids sectors with no connection to its domain advantage. Consumer internet, pure-play software with no physical-world interface, and speculative biotech are not in scope. The plan's industrial focus narrows its aperture to hard-tech companies where filtration, membranes, separation science, or emissions control create moats.

The Donaldson Foundation is a corporate philanthropy vehicle funded separately from the pension plan. It supports community and educational initiatives, primarily in regions where Donaldson operates manufacturing facilities. The foundation's assets are not commingled with pension capital, and its grantmaking is governed by an independent board.