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> immense amounts of pension fund money being poured into venture capital Is this still true? When ERISA was amended/relaxed and most pensions were defined ben
by Brybry 5y ago
> immense amounts of pension fund money being poured into venture capital
Is this still true? When ERISA was amended/relaxed and most pensions were defined benefits it was probably true.
But aren't the vast majority of pension plans defined contribution now?
Are defined contribution plans being funneled into venture capital (is that even allowed?)
Certainly social security money is not -- they're required to invest that in US treasuries.
- mschuster91 5y ago> Are defined contribution plans being funneled into venture capital (is that even allowed?) At least according to [1] about 20% of VC funding came from pension funds, and per [2] about 10% of pension fund assets are invested in "private equity". Given that we're talking about ~ 35 trillion US-$ in total pension fund assets [3], it's safe to say that it is an immense amount of money. And by the way, it's not just the startup/VC market that is being completely undermined by dumb pension fund money from the US. Real estate across the world is bought up by pension funds, driving up prices - good for those who sell to the pension funds, bad for those wishing to obtain their own home or renting. The way US pensions are set up is fucking over the entire world. [1]: https://www.ipe.com/letter-from-the-us-pensions-and-start-ups/10004114.article https://www.ipe.com/letter-from-the-us-pensions-and-start-up... [2]: https://www.pionline.com/interactive/private-equity-returns-help-public-pension-funds https://www.pionline.com/interactive/private-equity-returns-... [3]: https://www.statista.com/statistics/421729/pension-funds-assets-usa/ https://www.statista.com/statistics/421729/pension-funds-ass...