Interview Darren Foreman - PSERS

Darren Foreman shares his experience at the Pennsylvania Public School Employees’ Retirement System (PSERS), a major U.S. pension fund Fund manager $75 billion in assets for more than 500,000 beneficiaries. This type of institution plays a key role in pension funding and relies heavily on private equity to achieve its long-term performance goals. PSERS has been investing in private equity since the 1980s, giving it several decades of experience in this asset class. Darren Foreman, who has dedicated more than 20 years of his career to this field, has held various roles, eventually leading private equity investments and actively participating in fund selection and portfolio management. The primary appeal of private equity for a pension fund lies in its ability to generate returns that outperform public markets over the long term. These returns are essential for ensuring the funding of pension liabilities. At the same time, private equity provides access to a much broader investment universe, comprising thousands of unlisted companies that are often absent from public markets. The strategy of large institutional investors relies on significant and consistent allocation to private equity, with a long-term vision and rigorous selection of managers. This investment discipline, developed over several decades, is a key advantage in building high-performing portfolios. Finally, Darren Foreman discusses the gradual democratization of private equity, which is increasingly opening up to private investors. This trend would allow a greater number of investors to benefit from the same performance drivers as large pension funds, provided they maintain a structured, long-term approach.