InvestmentNews reported on October 22, 2026, that a new report from the American Investment Council (AIC) finds private equity posted a 13.2% median annualized return over 10 years for U.S. public pension funds. The outlet said that figure outpaced public equities, real estate and fixed income.
According to AIC's 2026 Pension Trends Report, released in Washington, D.C., on or about October 19, the study covers 200 pension funds. AIC says 86% of public pension funds hold some private equity. The release also states that the study covers nearly 34 million public-sector workers and retirees. That is a count of members and beneficiaries, not assets under management. AIC also states that, year after year since 2012, private equity has produced the strongest returns of any asset class held by public pension plans.
AIC's 10-year medians for the period ended June 30, 2025, put private equity at 13.20%, public equity at 10.58%, real estate at 6.00% and fixed income at 2.40%. The total portfolio median for the same period was 7.77%. Those figures place private equity well ahead of each of the other categories the report measures.
Individual funds posted higher private equity results than the median. According to AIC's report, Massachusetts PRIT (MassPRIM) reported a 10-year private equity return of 16.18%. Financial Regulation News, which also covered the report, cited a 16.27% private equity return for Ohio SERS and 16.12% for the West Virginia Investment Management Board.
The 13.2% median is lower than the figures in AIC's two previous studies. The 2025 study reported a 13.5% median over 10 years for the period ending in 2024, and the 2024 study reported 15.2% for the period ending June 30, 2023. Earlier studies reported 15.1% in 2022 and 13.7% in 2020, so the median has moved over time rather than trending in one direction.
AIC is a Washington, D.C.-based organization formerly known as the Private Equity Growth Capital Council. Its work spans lobbying, advocacy and research. A consortium of private equity firms launched it in February 2007, and it is described as a non-profit. Will Dunham is its President and CEO. Its members include some of the largest private equity firms, along with associate members such as advisory and law firms with private equity practices. The sources reviewed do not describe any further steps arising from the report.