The Law Enforcement Officers’ and Fire Fighters’ Retirement System Plan 2 (LEOFF 2) provides retirement benefits to law enforcement officers and firefighters across Washington state. LEOFF 2 assets, approximately $15 billion, are invested through the Washington State Investment Board (WSIB), which manages total assets exceeding $180 billion across all state retirement plans.
Investment Strategy
WSIB invests LEOFF 2 assets as part of its commingled trust fund, which maintains a diversified portfolio across public equities, fixed income, private equity, real estate, tangible assets, and innovation strategies. WSIB is recognized as one of the most sophisticated public pension investment operations in the United States, with a large internal team and deep experience in private markets.
The alternatives program is one of the largest among U.S. public pension funds. Private equity investments span buyout, growth equity, venture capital, and distressed strategies globally. The real estate program includes direct investments and fund commitments. Tangible assets cover timber, farmland, and other real assets that provide inflation protection.
WSIB’s long history of private market investing, dating back to the 1980s, has resulted in deep relationships with top-tier GPs and a mature, well-diversified portfolio.
How to Approach
GPs should engage with WSIB directly in Olympia. WSIB has a large internal alternatives team that maintains an active pipeline of manager evaluations. The fund invests through primary commitments, co-investments, and secondaries. WSIB is highly sought after as an LP and is selective in its manager partnerships. GPs should present a differentiated strategy, strong track record, and competitive terms.
Frequently Asked Questions
What is the LEOFF 2 alternatives allocation?
LEOFF Plan 2 assets are invested through the Washington State Investment Board (WSIB), which allocates approximately 20% of commingled trust fund assets to alternatives including private equity, real estate, and tangible assets. WSIB manages over $180 billion across all state retirement plans.
Who manages LEOFF 2 investments?
The Washington State Investment Board (WSIB) manages investments for LEOFF 2 and other state retirement plans. WSIB is widely recognized as one of the most sophisticated public pension investors, with a deep internal team and a long track record in private markets.
How can GPs engage with WSIB/LEOFF?
GPs should contact WSIB in Olympia. WSIB manages a very large alternatives portfolio and is a sought-after LP. The team evaluates managers based on track record, process, team quality, and terms. WSIB is active at industry conferences and maintains direct relationships with GPs globally.
