The Indiana Public Retirement System (INPRS) is the umbrella organization for the state’s public pension plans, including the Public Employees’ Retirement Fund and the Teachers’ Retirement Fund. With approximately $45 billion in total assets under management as of mid-2024, INPRS serves over 500,000 active members and retirees across Indiana.
Investment Strategy
INPRS employs a diversified multi-asset investment strategy designed to achieve long-term returns consistent with actuarial assumptions. The portfolio is allocated across public equities, fixed income, real estate, private equity, infrastructure, and other alternatives. The system’s board of trustees sets the strategic asset allocation, which is reviewed regularly through asset-liability studies.
Public equities provide long-term growth and represent the largest portfolio allocation, with exposure to domestic and international markets. Fixed income delivers stability, income, and downside protection. INPRS has developed a well-structured alternatives program that serves to diversify return sources and capture private market premiums.
Private Markets Approach
INPRS has built a meaningful private markets program relative to its asset base. The private equity allocation includes commitments to buyout, growth equity, venture capital, and special situations strategies. The system seeks to maintain a diversified portfolio across vintage years, geographies, and sub-strategies.
Real estate investments span core, value-add, and opportunistic strategies across property types. Infrastructure is a notable component of the alternatives portfolio, with INPRS investing in assets with stable, long-duration cash flows including transportation, utilities, and energy infrastructure.
Private credit has grown as an allocation within the alternatives portfolio, with commitments to direct lending and specialty finance strategies. These investments provide current income and portfolio diversification.
INPRS evaluates prospective managers through a structured due diligence process conducted by internal staff and external consultants. Key evaluation criteria include investment track record, team stability, process rigor, operational infrastructure, and alignment of interests. The system values transparent fee structures and regular performance reporting. Commitment sizes typically range from $25 million to $100 million depending on the strategy and fund size.
Frequently Asked Questions
How large is INPRS's alternatives allocation?
INPRS allocates approximately 20% of total assets to alternative investments, representing roughly $9 billion across private equity, real estate, infrastructure, and private credit. The private equity program is well-established with commitments across buyout, growth, and venture strategies.
What types of managers does INPRS seek?
INPRS invests with managers who demonstrate strong and consistent track records, disciplined investment processes, and institutional-quality operations. The system values alignment of interests and has been thoughtful about portfolio construction, maintaining diversification across strategies, geographies, and vintage years.
How can fund managers initiate a relationship with INPRS?
INPRS maintains an internal investment team that actively evaluates opportunities alongside external consultants. Managers should reach out to the investment team with a concise fund overview and performance summary. The board of trustees provides oversight and approves significant commitment decisions.
