The Public Employees Retirement Association of Minnesota (PERA) provides retirement, disability, and death benefits to employees of local government entities across Minnesota. PERA operates three plans: the General Employee Retirement Plan, the Public Employees Police and Fire Plan, and the Public Employees Correctional Plan. Combined, these plans manage approximately $30 billion in total assets.
Investment Strategy
PERA’s assets are invested through the Minnesota State Board of Investment (SBI), which manages a combined portfolio for multiple state retirement systems. The portfolio is diversified across public equities, fixed income, private equity, real estate, and other alternatives. The SBI sets investment policy and selects managers with a long-term focus.
The alternatives program includes private equity investments in buyout, growth, and venture strategies. Real estate allocations provide diversification and income through core and value-add funds. The SBI has been building the alternatives program over the past two decades, focusing on manager quality and vintage year diversification.
How to Approach
Fund managers should engage with the Minnesota State Board of Investment in Saint Paul. The SBI manages investments for PERA, TRA, and other Minnesota retirement systems, so a single relationship provides access to the full state pension pool. GPs should present a clear fund overview, audited track record, and competitive fee terms.
Frequently Asked Questions
What is Minnesota PERA's alternatives allocation?
Minnesota PERA assets are invested through the State Board of Investment (SBI), which allocates approximately 14% of the combined portfolio to alternatives including private equity and real estate. The SBI manages assets for PERA and other Minnesota retirement systems.
How are Minnesota PERA investments managed?
The Minnesota State Board of Investment manages investments for PERA alongside other state retirement systems. This pooled approach provides scale advantages and access to institutional-quality alternative investment managers.
How can GPs engage with Minnesota PERA?
GPs should contact the Minnesota State Board of Investment in Saint Paul. The SBI manages alternatives for all Minnesota state pension systems. The team evaluates managers based on track record, team quality, and strategy fit.
