The South Carolina Retirement System Investment Commission (SCRSIC) manages the investment of pension assets for the state’s public employees across multiple retirement systems. With approximately $40 billion in total assets as of mid-2024, the Commission oversees investments on behalf of over 550,000 active members and retirees.
Investment Strategy
SCRSIC employs a diversified investment strategy designed to meet the long-term return objectives of the retirement systems it serves. The portfolio spans public equities, fixed income, private equity, real estate, and other alternative investments. The Commission sets strategic asset allocation targets based on periodic asset-liability studies.
Public equities represent the largest portfolio allocation, with exposure to domestic and international markets. Fixed income provides stability and cash flow. The Commission has strategically increased its alternatives allocation over time, seeking to enhance returns and reduce dependence on public market performance.
Private Markets Approach
SCRSIC’s private markets program includes meaningful allocations to private equity, real estate, and private credit. The private equity portfolio spans buyout, growth equity, venture capital, and special situations strategies. The system focuses on building a diversified portfolio across vintage years, geographies, and manager styles.
Real estate investments include core, value-add, and opportunistic strategies across property types. The Commission invests through commingled funds and has explored co-investment opportunities selectively. Private credit has become an increasingly important component of the portfolio, with commitments to direct lending and structured credit funds.
The Commission’s governance structure includes members appointed by the Governor and the state legislature, providing independent oversight of investment decisions. The internal investment staff conducts due diligence on prospective managers, evaluating performance attribution, team stability, investment process, risk management, and operational infrastructure. SCRSIC values transparency in reporting and fee structures, and expects its general partners to maintain high standards of governance and communication.
Frequently Asked Questions
How large is SCRSIC's private equity program?
SCRSIC allocates approximately 12% of total assets to private equity, representing roughly $5 billion in committed capital. The program includes commitments to buyout, growth, and venture strategies with a focus on consistent performance and vintage year diversification.
What types of managers does SCRSIC prefer?
SCRSIC invests primarily with established managers who have demonstrated strong and consistent track records. The system values disciplined investment processes, strong risk management, and alignment of interests. Typical commitment sizes range from $25 million to $100 million.
How does SCRSIC evaluate new manager relationships?
SCRSIC's internal investment team conducts due diligence alongside external consultants. The Investment Commission, appointed by the Governor and legislature, provides governance oversight and approves significant commitments. Managers should be prepared for a thorough review process covering performance, operations, and organizational stability.
