September 24rd, 2025
Good morning, Dakota.
Corporate pensions are rethinking their playbooks.
With funding levels at their strongest in decades, many plans are realizing bonds alone won’t cut it anymore. A new KKR report says CIOs are turning toward private credit and alternative fixed income—think asset-based finance, direct lending, and private IG credit—as traditional fixed income hits diminishing returns.
Meanwhile, search activity stayed busy: Holyoke launched $35M in RFPs, Jacksonville mapped out $60M in annual PC commitments, and SDCERS detailed a $130M real estate push. Abroad, Aware Super is doubling down on London offices, while CPP and KKR teamed up on a $10B Sempra deal.
Let’s dig in.
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Dakota’s August 2025 Public Pension Brief shows continued momentum across 350+ public pension funds nationwide, with private credit leading the charge. Funds are increasingly targeting real estate value-add, data infrastructure, and energy transition strategies, while several systems—like Chicago Teachers and Arkansas PERS—are updating pacing plans and allocations toward alternatives. Leadership changes and new consultant hires underscore a broader evolution in public pension investment strategy and execution.
INSTITUTIONAL INVESTORS
Corporate Pensions Shift to Private Credit as Bonds Lose Edge
US corporate pension plans are moving beyond traditional bonds and equities, turning to private credit and alternative fixed income as funding levels reach multi-decade highs, according to KKR Solutions. CIOs are increasingly focused on locking in gains, managing liability risks, and aligning cash flows with shorter-duration liabilities.
“As end-state portfolios approach maturity, CIOs must evolve their toolkits to preserve gains, enhance diversification, and future-proof portfolios,” KKR noted.
Key Takeaways:
Traditional fixed income is hitting diminishing returns beyond ~70% allocation.
Alternatives like ABF, private IG credit, direct lending, and leveraged credit offer higher returns, lower volatility, and structural protections.
Fully funded plans can use ABF to lock in stability; underfunded plans can pursue opportunistic private credit to capture upside.
Bottom Line: With stronger funding and greater flexibility, corporate pensions have the chance to move from a defensive stance to a more offensive, diversified strategy.
Searches
Holyoke Retirement Board opens two RFPs: $5M for middle-market direct lending and $30M for US large-cap growth equity. Proposals due Oct. 17 and Oct. 31.
Jacksonville Retirement reviewing private credit pacing; considering $60M annual commitments (2026–2028) to reach 7% target allocation by 2029.
SDCERS plans $130M in 2026 real estate commitments across core plus, non-core equity, and non-core debt funds, exiting several prior investments.
Aware Super expands in Europe, focusing on London offices; has deployed ~$2.3B internationally since 2023, with plans for billions more in real estate, infrastructure, and private equity.
Investments
QIC rebrands its Australia Core Plus Fund to QIC Everyday Retail Fund, adding Prime Super and CEFC; plans to triple asset base in three years targeting convenience retail properties.
CPP & KKR to acquire 45% stake in Sempra Infrastructure Partners for $10B; Blackstone leads $7B equity investment for Port Arthur LNG Phase 2.
Sweden’s AP6 plans to sell nearly 10% of Asker Healthcare Group AB (~$360M) after a 27% post-IPO stock rally.
Houston Police Officers’ Pension System commits $45M to Arkkan Opportunities Fund (private credit), reallocates $569M from high-yield SMAs to Northern Trust and BlackRock bond ETFs.
Other
ART Leadership Change: Australian Retirement Trust names COO Kathy Vincent as CEO, effective Oct. 1; Rodney Greenhalgh steps in as interim COO during permanent search.
US PRT Market: Q2 new premiums drop 64% YoY to $4.1B; first-half sales $11.5B, down over 50% YoY. Overall PRT assets still rise 7% to $343.4B.
UK Bulk Annuity Market: On track to exceed £40B ($54.1B) for third straight year, with 350 buy-ins and buy-outs; second-half activity accelerating after muted H1 volumes.
WEALTH CHANNEL
Affluent Investors Re-Risk as Confidence Surges
OneDigital landed a $2.3B majority investment from Stone Point Capital and CPP Investments, valuing the firm at over $7B and fueling expansion across insurance, wealth, and retirement services. The deal, expected to close in Q4, marks OneDigital’s fourth recapitalization in 25 years and underscores confidence in its founder-led leadership and five core business verticals.
“This partnership gives us the fuel to keep building – investing in our people, advancing our technology, and showing up stronger for clients,” said CEO Adam Bruckman. OneDigital’s wealth arm manages $142B in assets, including $10B for high-net-worth clients, and aims to grow both organically and through acquisitions.
Deal Advisors: Evercore, Ardea Partners, and Barclays advised OneDigital, with Kirkland & Ellis as legal counsel. Stone Point was advised by J.P. Morgan Securities and RBC Capital Markets, with Simpson Thacher & Bartlett providing legal counsel and Paul Weiss Rifkind Wharton & Garrison handling debt financing.
M&A + Investments
Oakmont + BilkeyKatz Merge: Oakmont Capital Management (Oakmont, PA) is merging with Pittsburgh-based BilkeyKatz Investment Consultants. Combined firm will manage ~$9B in AUA, operate under Oakmont’s name; John Koteski named CEO, Darrin Duda CIO, Patrick Fisher head of consulting. Closing expected October 1.
Artorius Acquires UK Practice: Artorius buys Lunesdale Investment Managers from Raymond James, adding £95M ($128.4M) to AUM. Team includes Hugo Pring, Rachel Tilburn, Jane Conlin, and Adrian Williams.
Wellesley Asset Management Expands in TX: Wellesley Asset Management acquires Halbert Wealth (Austin, TX), adding $72.8M in non-discretionary AUM; financial terms undisclosed.
Advisor News
Seventy2 Capital Adds Morgan Stanley Veterans: James Shea joins as SVP, financial advisor & senior portfolio manager; David Waite as VP & financial advisor. Shea brings ~30 years of experience; Waite has been with Morgan Stanley since 1987.
ArrowPoint Wealth Advisors Launches ($379M AUM): Mandy Dollar and Jennifer Wallis start new firm with Osaic in Oklahoma City and Edmond, OK. Dollar is a sports & entertainment accredited advisor; Wallis holds a behavioral finance designation.
Fulton Private Bank Expands Mid-Atlantic Teams: Adds Michael Shore (Baltimore), Michael Emmet (Washington), and Richard Scott & Kyle Kocher (Lehigh Valley) to strengthen wealth management presence across the region.
Lang Investment Services Joins Raymond James ($136M AUM): Monument, CO-based team led by Matthew Lang joins Raymond James’ independent advisor channel, previously affiliated with Commonwealth Financial Network.
People Moves
Chilton Trust Names New CEO – Jennifer Lee, formerly head of US markets at PNC Private Bank, appointed CEO and president of Chilton Trust, effective Oct. 6.
Citi Wealth Adds Leadership Talent – Christine Curtiss joins as head of asset manager relationships and Kate Boucher as global head of alternative investment sales, bringing 15 years each from BNY Mellon and Goldman Sachs.
Flagstar Private Bank Appoints Family Advisory Head – Carly Doshi takes charge of family advisory and trust, previously leading wealth planning at HSBC Private Bank.
FB Financial Expands in Nashville – Clayton W. Hart named head of Nashville commercial banking and private wealth, formerly EVP at Pinnacle Financial Partners.
Charter Oak Capital Names CEO – Sarah Serling promoted from acting CEO to permanent CEO of the fiduciary wealth management firm.
Savvy Wealth Hires Merrill Lynch Veteran as CIO – Anshul Sharma joins to build first institutional-grade investment office; firm surpasses $3B AUM.
Annex Wealth CWO Steps Down – Dan Wilson resigns as chief wealth officer after six months; next role expected mid-to-late October.
Other
Parallel Advisors Launches California Trust Entity – Received regulatory approval for a California-chartered trust license and established Parallel Trust Company of California, which began offering services on September 22.
PRIVATE FUNDS
Deutsche Bank Teams Up with Partners Group
Deutsche Bank and DWS are collaborating with Swiss private equity firm Partners Group to launch a new evergreen private markets fund under the updated European long-term investment fund (ELTIF) regime. The fund will target qualified clients in the European Economic Area and Switzerland, offering a low minimum investment of €10K ($11.8K). Initial AUM is expected between €100M–€1B, with the potential to scale up to $10B.
The fund will deploy capital across private equity, private credit, infrastructure, and real assets through direct investments, co-investments, evergreen structures, and primary and secondary opportunities. Partners Group will serve as portfolio manager, while DWS takes on the role of alternative investment fund manager.
“Private markets offer potential for long-term value creation and stability in client portfolios. With Partners Group as portfolio manager, clients will benefit from the deep expertise of the market leader in the evergreen area,” said Claudio de Sanctis, head of Deutsche Bank’s private bank.
Partners Group added that combining its transformational investing approach with Deutsche Bank’s reach will expand access to premier private market investments and create long-term value for investors.
Private Equity
Pelorus Capital Launches $1B Cannabis Fund – Pelorus Growth Fund targets equity investments in cannabis operating businesses, seeded with assets spun out from the firm’s existing real estate holdings.
JB46 Partners Closes €40M Third Fund – Madrid-based private investment firm raised €40M ($47.2M) for JB46 SFI III, supporting acquisitions of SMEs across Europe, the US, Canada, Mexico, and Brazil. First U.S. acquisition: Gallagher Bros Construction, a restoration and roofing company.
CDG Invest Growth Nears Fifth Fund Close – Morocco’s state-backed private equity arm is finalizing its fifth fund, focusing on healthcare and medical technology as primary deployment areas.
Venture Capital
Suma Capital Closes SC Net Zero Ventures I at €210M – Climate tech fund targets B2B companies in and out of Europe, with anchor investment from Repsol and commitments from the European Investment Fund and Spanish public institutions.
Chiratae Ventures’ Fifth VC Fund Hits $150M at Second Close – Fund V focuses on early-stage technology startups, with investments in HouseEazy, Pepsales, Mili, and Zilo; final close expected in Q1 2026.
C4 Ventures Targets €100M for Third AI Fund – C4 Ventures III will back early-stage AI and deep tech startups across Europe; the firm has invested in 54 startups, 12 of which became unicorns.
Presight & Shorooq Launch $100M AI Innovation Fund – Presight-Shorooq Fund I aims to support AI, machine learning, and advanced analytics investments transforming industries.
Archetype Closes Third Crypto Fund at $100M – Archetype III will invest in crypto infrastructure, on-chain social networks, stablecoins, payments, AI, and decentralized applications.
Peakline Partners Marks First Close of Ventures AI Fund at $90M – Initial close supports investment in 7–10 growth-stage AI companies, targeting $150M total.
Other News
Former BlackRock CIO Targets $700M for Credit Hedge Fund – Neeraj Seth aims to raise $700M for 3R Investment Management, with 80% allocated to a long-short corporate bond and loan strategy across Asia-Pacific and the Middle East.
Ascendas AM Launches Fifth South Korea Office Fund – The new KRW 107.5B ($77.1M) single-asset fund acquired Seoul’s 14-story Jongro Place, transferred from Ascendas Korea Office Private REIT 3 at a cost of SGD 289.6M ($225.7M).