Public Employee Retirement System of Idaho

The Public Employee Retirement System of Idaho (PERSI) is the primary defined benefit pension plan for state employees, public school employees, and local government workers in Idaho. With approximately $22 billion in assets under management, PERSI is the largest institutional investor in the state and a meaningful allocator across public and private markets.

Investment Strategy

PERSI employs a long-term, diversified investment strategy designed to achieve its actuarial return assumption while managing risk within acceptable boundaries. The portfolio is allocated across public equity, fixed income, real estate, and alternative investments. The PERSI Board sets strategic asset allocation policy, which is reviewed through periodic asset-liability studies.

The public equity allocation includes both U.S. and international stocks, managed through a combination of index strategies and actively managed mandates. Fixed income provides stability and liquidity through allocations to government bonds, investment-grade corporate bonds, and other income-oriented instruments. PERSI’s overall investment philosophy emphasizes discipline, diversification, and cost-consciousness.

The system has maintained a measured approach to alternatives, building out its private markets exposure gradually over time. This reflects both the system’s conservative governance culture and a recognition of the diversification benefits that private capital investments can provide.

Private Markets Approach

PERSI invests in private equity through commitments to limited partnership funds, with exposure to buyout, growth equity, and other strategies. The system favors partnerships with established general partners who demonstrate consistent performance and strong alignment with limited partner interests.

Real estate forms part of the alternatives allocation, with investments accessed through commingled funds across core and value-add strategies. These allocations provide income generation, inflation protection, and diversification from public equity markets.

PERSI’s approach to private markets is characterized by careful manager selection and disciplined commitment pacing. The system avoids overcommitment and maintains diversification across vintage years and strategies. Fund managers approaching PERSI should expect a deliberate evaluation process that emphasizes track record consistency, team stability, transparent reporting, and reasonable fee structures. Final commitment decisions are made by the PERSI Board following recommendations from staff and external advisors.