U.S. Public Pensions Showing Confidence In PE & VC

LP Perspective: U.S. Public Pensions Showing Confidence In PE & VC by Joanna Nolasco, PitchBook

The past year has revealed a somewhat complicated relationship between U.S. public pension funds and their private equity managers. Reports began to circulate last summer that CalPERS--the largest U.S. pension fund—wasn’t sure how much its PE fund managers had collected in profit-sharing fees, claiming a lack of consistency in reporting; the oversight brought into question the true gains from those investments. Months later, the Institutional Limited Partners Association launched a fee-reporting template to imbue transparency into fund manager expenses.

Following the stir around fees, CalPERS upheld its PE allocation, revealing that its private equity program had added $24.2 billion in realized net gains from 1990 to June...