Public Pension Fund
Public pensions manage retirement assets for public employees and operate with high transparency and formal processes. Allocator behavior is governed by board approvals, procurement rules, and programmatic pacing.
A Public Pension Fund manages assets to pay retirement benefits for public employees and typically operates under governance structures that include boards, public reporting, and formal procurement/selection processes. These funds can write large checks and build diversified alternatives programs, but success in fundraising depends on understanding process reality.
Public pensions are not “slow because they’re bureaucratic.” They are slow when the GP fails to qualify the selection path, timing windows, and approval thresholds early.
How public pensions allocate
Typical features:
- Strong reliance on consultants and structured searches
- Clear program buckets (PE, real estate, infrastructure, private credit)
- Policy-driven allocations and pacing discipline
- Emphasis on operational due diligence, reporting, and governance defensibility
OSINT signals (often unusually strong)
Because of transparency, public pensions often leave a visible trail:
- Board agendas and minutes
- Staff memos and recommendation materials
- RFPs and procurement notices
- Disclosed commitments and manager roster updates
- Legislative or governance changes impacting risk tolerance
What slows decisions
- RFP cycles and procurement requirements
- Board meeting schedules and approval thresholds
- Legal review requirements and side-letter standardization
- Heightened sensitivity to fees, conflicts, and headline risk
Key diligence questions for GPs
- Is this commitment made via RFP/search or can it be a direct add?
- What are the approval thresholds and meeting cadence?
- Who is the internal sponsor (staff lead) and who must sign off?
- What is the timeline from diligence to board approval?
- What are the standardized side letter positions (MFN, reporting, fees)?
Key Takeaways
- Public pensions are process-driven allocators with large capacity
- The OSINT trail is usually rich—use it to qualify timing and posture
- Winning is about navigating process and defensibility, not hype