CalPERS Discloses Expenses and Investment Returns with Private Equity Firms
For many years, the state pension funds like CalPERS have invested money that has been earned by different government employees, teachers and firefighters with private equity firms. But till now people did not have a clear picture about the expenses they are incurring or how much were earning.
For the first time, the California Public Employees’ Retirement System (CalPERS) disclosed on Tuesday that it has paid $3.4 billion since 1990 to some of the largest Wall Street private equity managers like firms like Apollo, Carlyle and Blackstone.
According to CalPERS’s Private Equity Accounting and Reporting which is its new data-collecting program, it made profits of $24.2 billion during that time frame from the private equity firms.
This move of disclosing investment profit details by CalRERS which is the largest pension fund run by the state could lead to pave a way towards added transparency in the private equity industry which otherwise has been highly secretive in the entire financial world.
In a statement on Tuesday, CalPERS board’s vice president and the chairman of the investment committee, Henry Jones said “Private equity is a complicated asset class and the board and investment office staff will now have even more insight into our program.”