PSERS Deploys $420M Into Energy, Infra, Real Estate

The Pennsylvania Public School Employees’ Retirement System (PSERS) is continuing to scale its alternatives portfolio, approving $420 million in new allocations to real asset strategies as part of its broader push into private markets. 

The $85 billion pension now holds approximately 35% of its portfolio in private market investments, including private equity, credit and real assets, reflecting a growing emphasis on income, diversification and inflation protection. 

The largest commitment, $200 million to LS Power Equity Partners VI, targets North American energy infrastructure, including power generation, transmission and storage assets, as demand for grid resilience and energy transition investments accelerates. 

PSERS also allocated capital to Warwick Partners V, an energy-focused strategy targeting U.S. onshore oil and gas assets. Warwick is pursuing opportunities in a less competitive middle market, seeking to acquire cash-flowing assets at valuations below 3x EV/EBITDA, as industry reinvestment remains below levels needed to sustain production. 

On the real estate side, the pension committed $150 million to DRA Growth and Income Fund XII, a value-add strategy investing across U.S. property types. The fund aims to capitalize on market inefficiencies by acquiring high-quality assets and enhancing returns through operational improvements, leasing strategies, selective leverage and opportunistic exits.