The Ohio Public Employees Retirement System (OPERS) serves as the retirement plan for public employees across the state of Ohio, excluding teachers and public safety officers who have separate systems. Established in 1935, OPERS has grown into one of the largest public pension funds in the United States, with assets under management of approximately $100 billion as of mid-2024.
Investment Strategy
OPERS employs a diversified investment strategy across public equities, fixed income, real estate, private equity, and other alternative investments. The fund’s asset allocation is governed by its board of trustees, which sets strategic targets reviewed on a regular basis. Domestic and international equities form the largest portion of the portfolio, while fixed income provides stability and liability matching. The system maintains a long-term investment horizon consistent with its multi-decade pension obligations, and its investment team operates with a disciplined approach to risk management and portfolio construction.
Private Markets Approach
OPERS has maintained an active private markets program for over two decades. The private equity allocation targets approximately 10% of total fund assets, with commitments spanning buyout, growth equity, venture capital, and distressed strategies. The system invests primarily through fund commitments with established general partners, supplemented by a growing co-investment program that enhances returns while reducing fee drag.
Real estate represents another significant alternative allocation, with OPERS investing in both core and value-add strategies across property types. The system has also expanded into infrastructure investments, recognizing the asset class’s inflation-hedging characteristics and stable cash flow profiles.
OPERS evaluates private markets managers based on track record, team stability, investment process, alignment of interests, and operational capabilities. The system values transparency in reporting and expects institutional-quality governance from its fund managers. Investment decisions flow through a structured approval process involving internal staff analysis, consultant review, and board-level authorization.
Frequently Asked Questions
How large is Ohio PERS's private equity program?
Ohio PERS targets approximately 10% of total assets to private equity, translating to roughly $10 billion in committed capital. The system invests across buyout, growth equity, and venture capital strategies through both fund commitments and co-investments.
What is the minimum fund size Ohio PERS typically considers?
Ohio PERS generally invests in established funds with proven track records. Minimum commitment sizes typically start at $50 million, and the system favors managers with at least $500 million in fund size to ensure adequate capacity and operational infrastructure.
How should fund managers approach Ohio PERS for a new allocation?
Ohio PERS works with a network of placement agents and investment consultants, including internal investment staff who evaluate opportunities. Managers should submit materials through the system's formal RFP process or through established consultant relationships. The investment committee meets regularly to review new commitments.
