The Florida Retirement System (FRS) is the fourth-largest public pension system in the United States, providing retirement benefits to approximately 1.2 million active and retired members including state employees, teachers, and law enforcement officers. The FRS’s investment portfolio is managed by the Florida State Board of Administration (SBA).
Investment Strategy
The FRS maintains a broadly diversified investment portfolio across public equities, fixed income, private equity, real estate, infrastructure, hedge funds, and private credit. The SBA’s investment team manages the portfolio with a long-term focus on achieving the fund’s actuarial return target while controlling downside risk.
The alternatives program is one of the largest among U.S. public pension funds. Private equity investments span the full spectrum of buyout, growth equity, venture capital, distressed, and secondaries strategies. Real estate includes a substantial direct investment program as well as fund investments across core, value-add, and opportunistic strategies. Infrastructure investments target essential assets globally. The hedge fund program provides diversification and downside protection.
The SBA has a large, experienced internal alternatives team that sources and manages investments directly, reducing reliance on consultants. The team has deep relationships across the GP landscape and is known for its thorough due diligence and portfolio construction discipline.
How to Approach
GPs should contact the SBA’s Strategic Investments group in Tallahassee. Given the fund’s scale, the SBA can make large commitments and is active in co-investments and secondaries alongside primary fund commitments. The team evaluates managers on track record, team quality, strategy differentiation, terms, and alignment of interests. The SBA is accessible and maintains an active calendar of manager meetings.
Frequently Asked Questions
How large is the FRS alternatives program?
The FRS allocates approximately 20% of its $205 billion portfolio to alternatives, representing roughly $41 billion across private equity, real estate, infrastructure, hedge funds, and private credit. This makes the FRS one of the largest alternatives allocators among U.S. public pension funds.
What is the difference between the FRS and the Florida SBA?
The Florida State Board of Administration (SBA) is the entity that manages investments for the Florida Retirement System (FRS) and other state trust funds. When engaging as a GP, you work with the SBA investment team, which makes allocation decisions on behalf of the FRS.
How can GPs approach the FRS/SBA?
GPs should engage with the Florida SBA's Strategic Investments team in Tallahassee. The SBA has a large internal team of alternatives professionals who source and evaluate managers. The fund invests through primary commitments, secondaries, and co-investments. GPs should provide a concise fund overview, track record, and strategy differentiation.
