According to Dealbook private equity and public pensions are one of Wall Street’s most peculiar love affairs. Recently, the two have tried to become even closer. But don’t get mushy — this relationship is about money, not romance. Public pensions pay billions in fees to private equity. The question is whether it is worth it.
Private equity’s first date with public pensions was in 1981, when the Oregon Investment Council, the manager of Oregon’s pension fund, invested along with Kohlberg Kravis Roberts & Company to buy the retailer Fred Meyer. Since then, the two have been inseparable, and pension funds have at times made up more than 50 percent of private equity’s financing….
Read more at http://dealbook.nytimes.com/2011/12/13/wall-st-s-odd-couple-and-their-quest-to-unlock-riches/?ref=global
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