The Iowa Public Employees’ Retirement System closed out 2025 by approving over $2 billion in private markets pacing commitments and modestly de‑risking its portfolio after posting a 9.87% return for the fiscal year. The $47 billion Des Moines-based plan will reallocate its 5% smart beta sleeve into more defensive asset classes, aiming to dampen volatility while preserving its ability to meet long-term benefit obligations. 

On the absolute return side, IPERS plans new allocations to three global hedge fund managers. Florin Court Capital will run a diversified absolute return strategy in specialized alternative markets across more than 480 instruments, while Capital Fund Management’s CFM ISTEC program will provide trend-following exposure with built-in convexity to help in equity drawdowns. Man AHL, an incumbent manager, is slated for additional commitments to its catastrophe bond and insurance-linked securities strategy, which targets insurance risk premia with a historical volatility of roughly 4–6%. 

Real assets remain a central growth engine. IPERS expects about $750 million in new real assets commitments next year, including $300 million of recycled real estate proceeds into core and core-plus strategies and up to $600 million in infrastructure plus $125 million in co-investments. Recent hires include BentallGreenOak for a separate account focused on industrial, multifamily, and infrastructure-oriented commercial assets, and CBRE’s U.S. Core Partners strategy emphasizing research-driven, diversified core real estate. 

In private equity and private credit, IPERS anticipates deploying roughly $700 million and $575 million, respectively, funded from net proceeds. The Pathway-managed private equity portfolio, now near 17% of plan assets and almost $8 billion, returned 8.9% for the year, while private credit commitments will span direct lending and real assets credit, alongside additional co-investments.