The State Teachers Retirement System of Ohio (STRS Ohio) is one of the largest public pension funds in the United States, serving over 500,000 active, inactive, and retired members. Established in 1920, the system provides retirement, disability, and survivor benefits to Ohio’s public educators and their beneficiaries.
Investment Strategy
STRS Ohio operates a globally diversified investment portfolio across public equities, fixed income, real estate, private equity, and alternative investments. The fund’s investment strategy is guided by a long-term asset allocation framework designed to meet its actuarial assumed rate of return while managing risk. Public equities represent the largest allocation, followed by fixed income and alternatives.
The fund’s alternatives program has grown substantially over the past two decades. Private equity investments span buyout, growth, and venture strategies across North America, Europe, and Asia. The real estate portfolio includes direct property investments managed by an internal team, as well as external fund commitments. STRS Ohio also maintains allocations to opportunistic credit and infrastructure.
STRS Ohio manages a significant portion of its assets internally, which helps reduce fee drag and gives the investment team direct oversight of portfolio construction. The internal real estate team, in particular, has built a substantial direct portfolio of commercial properties across the United States.
How to Approach
GPs seeking to engage with STRS Ohio should direct inquiries to the alternatives investment team in Columbus. The system evaluates new managers based on track record consistency, team stability, strategy differentiation, and alignment of interests. STRS Ohio invests across fund sizes but has the capacity for large commitments given its portfolio scale. Building relationships with the internal team through conferences and direct outreach is the most effective path. The system also accepts introductions through established consultant networks.
Frequently Asked Questions
What is STRS Ohio's alternatives allocation?
STRS Ohio allocates approximately 22% of its portfolio to alternative investments, including private equity, real estate, and opportunistic strategies. This represents roughly $20 billion in committed capital across private markets, making STRS Ohio one of the larger alternatives allocators among U.S. public pension funds.
What types of private equity does STRS Ohio invest in?
STRS Ohio's private equity portfolio spans buyout, growth equity, venture capital, and distressed strategies. The system invests through both fund commitments and co-investments, with typical commitment sizes ranging from $50 million to $200 million per fund. STRS Ohio has been investing in private equity since the early 1990s.
How can GPs engage with STRS Ohio?
STRS Ohio has a dedicated internal alternatives investment team that evaluates new managers. The system also works with placement agents and investment consultants. GPs should reach out with a concise summary of their fund strategy, track record, and differentiated value proposition. STRS Ohio values long-term partnerships and tends to re-up with managers who deliver consistent results.
