USS Hires CalSTRS Veteran Robert Ross for PE Leadership

In a significant move for the UK's largest private pension scheme, USS has appointed Robert Ross, a seasoned private equity professional from the California State Teachers' Retirement System (CalSTRS), to spearhead its private equity initiatives. Ross is set to join USS Investment Management, the scheme's investment advisory arm, in September as the new Head of Private Equity Funds and Co-Investments. This strategic hire underscores USS's commitment to expanding its alternative asset allocation and leveraging deep expertise in a sector experiencing robust growth.

Ross brings over a decade of experience from CalSTRS, where he managed significant portions of the $300 billion pension fund's private equity portfolio, including a focus on emerging managers. His prior experience at TIAA-CREF further solidifies his extensive background in institutional investing. At USS, he will report to Ben Levenstein, Head of Private Markets, and will be responsible for the strategy and execution of the fund's commitments to external buyout and growth funds, as well as co-investment opportunities. He succeeds Geoffrey Geiger, who retired last year.

This appointment comes at a pivotal time for USS, which has demonstrated a remarkable financial turnaround. Emerging from a substantial deficit in 2020, the scheme now boasts an estimated surplus of £16.9 billion ($23 billion) and a funding level of 127% as of its provisional 2026 valuation, with total assets reaching approximately £84 billion ($115 billion). This financial strength, bolstered by strong performance in growth assets, provides USS with the confidence and capital to deepen its engagement with private markets, moving beyond traditional liability matching strategies.

USS Investment Management operates with a significant in-house capability, managing roughly 68% of the scheme's assets internally. This approach is estimated to generate annual savings of around £102 million ($139 million) compared to industry peers. The Private Markets Group, a substantial team of nearly 80 professionals, oversees approximately £26 billion ($35 billion) across private equity, direct infrastructure, private credit, and real estate. The group's operational model, described by Levenstein as functioning "like a GP," emphasizes direct deal origination, execution, and management, with about 70% of its private markets allocation invested directly.

The UK government's push for pension funds to increase investment in domestic private assets aligns with USS's strategic direction. With its considerable scale and established in-house expertise, USS is well-positioned to act as a significant deployer of capital directly into the UK economy. Ross's arrival is expected to further enhance the scheme's ability to source and manage sophisticated private equity investments, aligning with both its fiduciary duty to pensioners and national economic objectives.

The private equity sector continues to attract substantial institutional capital, driven by the potential for higher returns compared to public markets. Global private equity fundraising reached record levels in recent years, and large pension schemes like USS are increasingly opting for direct investment and co-investment strategies to gain greater control and potentially enhance net returns. Ross's appointment signals USS's intent to remain at the forefront of these evolving investment strategies.