STRS Ohio's $3.7B Pacing Plan Meets a 'Nice Problem'; Blue Pool Closes $1.4B Debut Fund

STRS Ohio's Pacing Plan Meets a 'Nice Problem'

Blue Pool Closes $1.4B Debut Fund

STRS Ohio is struggling to grow its private credit allocation toward its fiscal 2027 policy target even as staff continues deploying capital, as strong distributions and outsized public equity gains widen the gap rather than close it. CIO Aaron DiCenzo described a "reverse denominator effect," with private credit and private equity each holding at 8.8% of the $110.2B fund against 10% and 9% targets, respectively, as the pension works through a $3.7B fiscal 2026 pacing plan.

In allocator activity, Finnish pension insurer Ilmarinen raised its equity allocation to 62% from 54% in the first half of the year ahead of Finland's pension investment regulation reform; South Korea's Korea Scientists and Engineers Mutual-aid Association opened a search for roughly 15 domestic private equity and venture capital managers, targeting a combined $325M in commitments; and in Canada, IMCO committed $215M to a KingSett Capital real estate growth fund focused on the Greater Toronto Area, Vancouver, and Montreal.

On the GP fundraising side, Hong Kong-based Blue Pool Capital raised approximately $1.4B for its debut private equity fund, Riverside, which cleared its $750M target within months. Elsewhere, HSG, the Chinese firm formerly known as Sequoia Capital China, is in early talks to raise at least $1.2B for its first dollar-denominated fund since separating from Sequoia, targeting AI, healthcare, and consumer companies.

In people news, Invesco launched a unified solutions platform combining its model portfolio, SMA, and custom institutional mandate capabilities, naming Clint Harris global head of the unit and hiring Darby Nielson as CIO of multi-asset solutions from Fidelity Investments; and Radical Ventures added Lauren Morea as partner and head of investor relations and capital formation from L Catterton.