Key Takeaways
- • US pension funds awarded $9.25 billion in venture capital mandates during 2025, representing a 39% year-over-year increase from $6.66 billion in 2024 and the highest allocation since 2022, according to With Intelligence data cited by S&P Global.
- • CalPERS leads US pension VC investment with $8.73 billion in total venture capital holdings as of January 19, 2026, and committed an additional $30 million to Haun Ventures Management LP's Essential Innovation Partners fund in April 2025.
- • European pension funds increased VC mandates to $485 million in 2025, up 64% from $296.1 million in 2024, with UK-based Border To Coast Pensions Partnership Ltd. holding the largest European VC portfolio at $287.8 million.
- • The top 10 US pension funds collectively hold $30.37 billion in venture capital investments as of mid-January 2026, with Kaiser Permanente Pension Plan ($4.78 billion), Texas County & District Retirement System ($3.29 billion), and New York State Common Retirement Fund ($3.08 billion) rounding out the top tier.
- • Venture capital remains an emerging asset class for European pensions, which historically allocated minimal portfolio percentages to VC but have been steadily increasing allocations over the past 2-3 years, according to Bruna Bauer, head of research at Pensions for Purpose.
Summary
US pension funds dramatically accelerated their venture capital commitments in 2025, issuing $9.25 billion in new mandates—the strongest year since 2022 and a substantial 39% increase compared to 2024's $6.66 billion allocation. This surge reflects growing institutional confidence in venture capital as an asset class capable of delivering competitive long-term returns, with major US pension systems now viewing VC as a core component of diversified portfolio strategies.
California Public Employees' Retirement System (CalPERS) maintains its position as the dominant US pension player in venture capital, with $8.73 billion in total VC investments valued as of January 19, 2026. The system demonstrated its continued commitment by deploying an additional $30 million to Haun Ventures Management LP's Essential Innovation Partners fund in April 2025, and has signaled intentions to expand private equity and venture capital investments globally over the ensuing 12 to 18 months. The broader top-10 cohort of US pension funds collectively manages $30.37 billion in VC holdings, with Kaiser Permanente Pension Plan ($4.78 billion), Texas County & District Retirement System ($3.29 billion), and New York State Common Retirement Fund ($3.08 billion) forming the secondary tier.
European pension funds similarly elevated their venture capital commitments, reaching $485 million in mandates during 2025—a 64% increase from $296.1 million in 2024. However, the absolute scale remains considerably smaller than in the US, reflecting VC's relative nascency as an institutional asset class on the continent. Border To Coast Pensions Partnership Ltd., a UK-based vehicle, leads European pension systems with $287.8 million in VC holdings. According to Bruna Bauer, head of research at Pensions for Purpose, venture capital represents an emerging allocation opportunity for UK and European pension funds, which have historically maintained minimal VC exposure but have progressively increased their commitments over the past 2-3 years as they recognize VC's potential to deliver superior risk-adjusted returns comparable to North American peers.
California Public Employees' Retirement System (CalPERS) maintains its position as the dominant US pension player in venture capital, with $8.73 billion in total VC investments valued as of January 19, 2026. The system demonstrated its continued commitment by deploying an additional $30 million to Haun Ventures Management LP's Essential Innovation Partners fund in April 2025, and has signaled intentions to expand private equity and venture capital investments globally over the ensuing 12 to 18 months. The broader top-10 cohort of US pension funds collectively manages $30.37 billion in VC holdings, with Kaiser Permanente Pension Plan ($4.78 billion), Texas County & District Retirement System ($3.29 billion), and New York State Common Retirement Fund ($3.08 billion) forming the secondary tier.
European pension funds similarly elevated their venture capital commitments, reaching $485 million in mandates during 2025—a 64% increase from $296.1 million in 2024. However, the absolute scale remains considerably smaller than in the US, reflecting VC's relative nascency as an institutional asset class on the continent. Border To Coast Pensions Partnership Ltd., a UK-based vehicle, leads European pension systems with $287.8 million in VC holdings. According to Bruna Bauer, head of research at Pensions for Purpose, venture capital represents an emerging allocation opportunity for UK and European pension funds, which have historically maintained minimal VC exposure but have progressively increased their commitments over the past 2-3 years as they recognize VC's potential to deliver superior risk-adjusted returns comparable to North American peers.
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