Connecticut Retirement Plans and Trust Funds is targeting smaller private equity managers to diversify its portfolio. Mark Evans, a principal investment officer overseeing private equity and private credit, highlighted that GPs at the lower end of the spectrum may offer lower correlation with public markets compared to larger counterparts. This strategy aligns with the system's ongoing efforts to build towards its private equity allocation target.

The approach could expand the system's growth equity exposure, which currently remains below its desired level. Evans made these remarks during the system's investment advisory council meeting on Wednesday, emphasizing the potential benefits of smaller-scale management firms.