The $130 billion Virginia Retirement System (VRS) has piled on $1.25 billion in fresh capital commitments, mostly across credit funds, in recent months.
Investment reports show that the Richmond-based system returned 12.8% in 2025, with the best-performing private market class being the credit portfolio, which returned just over 10%. In contrast, the public equities portfolio, which makes up 40% of assets, soared with gains of over 23%.
VRS, which already has significant hedge fund investments under its $6 billion diversifying strategies portfolio, recently added a hedge fund to its equities program. ValueAct Capital saw a $100 million commitment to its ValueAct Japan Fund, a long-only, engagement-driven activist strategy investing in undervalued Japanese equities.
Credit strategies diversify
Asia Pacific was also in focus within the $18.4 billion credit program with the addition of Ares Management’s Ares SSG Capital Partners VII. The closed-end fund is focused on APAC private credit and saw a $300 million mandate from VRS. The fund has a four-year drawdown period.
A Barings evergreen fund, Barings Portfolio Finance, was awarded a $750 million allocation. The strategy invests in senior loans to third-party asset managers.
Power assets
In the $16.5 billion real asset program, VRS added a separate account mandate for a $100 million commitment. The Meadow Energy Ground Leases SMA, a Meadow Partners offering, is focused on acquiring and managing powered land in the U.S. and U.K.
