Arizona Retirement Targeting $1.85B to Private Equity, Private Credit

The Arizona State Retirement System is looking to place $1.85 billion across private equity and private credit in 2024, according to an implementation plan that was presented at a recent meeting.

ASRS will be targeting $900 million to private equity. The pension fund has been working on lowering the number of strategic partners from 93 to 45-50 managers over time. As of September 30, 2023, the Private Equity asset class weighting relative to the Total Fund is 13.4%. 

In private credit, $950 in new commitments is expected in 2024. The share of the asset class in the total fund increased from 16.6% in the fiscal year 2018 to 22.8% in the fiscal year 2023, slightly below the Strategic Asset Allocation (SAA) goal of 23.0%.

As of September 30, 2023 the pension fund was valued at approximately $50.6 billion.

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