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CalPers, the largest public employee retirement system in the US was not getting the kind of returns that they needed. They were restricted from purchasing stoc

by vondur 8mo ago

CalPers, the largest public employee retirement system in the US was not getting the kind of returns that they needed. They were restricted from purchasing stocks in certain industries, such as oil, weapons, etc.. However, they recently switched to investing in private equity funds and now they are getting much better returns, without all the pesky moral issues involved with it.

sidewndr46 8mo ago
So is that basically a pensionwashing scheme?
- vondur 8mo ago
  Pretty much spot on.
- NoboruWataya 8mo ago
  Washing what, exactly? If you are suggesting that pension funds are investing via PE funds in assets that the pension funds themselves are prohibited from investing in, that's not how it works. The mandate between a pension fund and the PE fund will be quite clear on what assets the PE fund may or may not invest in on behalf of the pension fund, and will mirror the restrictions that apply to the pension fund.
ineptech 8mo ago
> However, they recently switched to investing in private equity funds and now they are getting much better returns TFA says otherwise, in detail and with a lot of supporting data. If you're going to contradict it you ought to cite a source.
- vondur 8mo ago
  Here's a link to their private equity fund status: https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance?utm_source=chatgpt.com https://www.calpers.ca.gov/investments/about-investment-offi... And here's a link to the CalPers celebrating their new ROI: https://news.calpers.ca.gov/celebrating-10th-anniversary-calpers-ceo-cites-improved-funded-status-as-top-achievement/ https://news.calpers.ca.gov/celebrating-10th-anniversary-cal...
  - downrightmike 8mo ago
    Until PE fleeces them
kayo_20211030 8mo ago
>they recently switched to investing in private equity funds That's not recent at all. They've, for a long time, had large allocations to PE funds.
toomuchtodo 8mo ago
> However, they recently switched to investing in private equity funds and now they are getting much better returns, without all the pesky moral issues involved with it. Investors Warn of 'Rot in Private Equity' as Funds Strike Circular Deals - https://news.ycombinator.com/item?id=46380751 https://news.ycombinator.com/item?id=46380751 - December 2025 Once Wall Street’s High Flyer, Private Equity Loses Its Luster - https://news.ycombinator.com/item?id=46364566 https://news.ycombinator.com/item?id=46364566 - December 2025 Private Equity’s Latest Financial Alchemy Is Worrying Investors - https://news.ycombinator.com/item?id=44891882 https://news.ycombinator.com/item?id=44891882 - August 2025 People Are Worried About Private Market Liquidity - https://www.bloomberg.com/opinion/newsletters/2025-06-10/people-are-worried-about-private-market-liquidity https://www.bloomberg.com/opinion/newsletters/2025-06-10/peo... | https://archive.today/wJ3Uf https://archive.today/wJ3Uf - June 10th, 2025 Private Equity Fundraising Plunges Amid Struggle to Return Cash - https://www.bloomberg.com/news/articles/2025-05-27/private-equity-fundraising-plunges-amid-struggle-to-return-cash https://www.bloomberg.com/news/articles/2025-05-27/private-e... | https://archive.today/hxvzb https://archive.today/hxvzb - May 27th, 2025 Private Equity Firms Hunt for Alternate Ways to Return Investor Cash - https://www.bloomberg.com/news/newsletters/2025-05-14/private-equity-firms-hunt-for-alternate-ways-to-return-investor-cash https://www.bloomberg.com/news/newsletters/2025-05-14/privat... | https://archive.today/6UzBk https://archive.today/6UzBk - May 14th, 2025 Unlocking a potential US$3.8 trillion opportunity for private equity firms - https://www.deloitte.com/us/en/insights/industry/financial-services/private-equity-liquidity-challenges-and-fundraising-strategies.html https://www.deloitte.com/us/en/insights/industry/financial-s... - December 16th, 2024
lokar 8mo ago
I would not be so sure they are getting better real returns. The mostly made up marks come out infrequently and seem to go down very slowly. We won't know the return until the investment is over and capital is returned. This kind of deceit is one of the main services PE funds provide
diggyhole 8mo ago
Oil and gas is bad but private equity which can act like a loan shark is fine!

by vondur 8mo ago

sidewndr46 8mo ago

So is that basically a pensionwashing scheme?

vondur 8mo ago
Pretty much spot on.
NoboruWataya 8mo ago
Washing what, exactly? If you are suggesting that pension funds are investing via PE funds in assets that the pension funds themselves are prohibited from investing in, that's not how it works. The mandate between a pension fund and the PE fund will be quite clear on what assets the PE fund may or may not invest in on behalf of the pension fund, and will mirror the restrictions that apply to the pension fund.

ineptech 8mo ago

> However, they recently switched to investing in private equity funds and now they are getting much better returns TFA says otherwise, in detail and with a lot of supporting data. If you're going to contradict it you ought to cite a source.

vondur 8mo ago
Here's a link to their private equity fund status: https://www.calpers.ca.gov/investments/about-investment-office/investment-organization/pep-fund-performance?utm_source=chatgpt.com https://www.calpers.ca.gov/investments/about-investment-offi... And here's a link to the CalPers celebrating their new ROI: https://news.calpers.ca.gov/celebrating-10th-anniversary-calpers-ceo-cites-improved-funded-status-as-top-achievement/ https://news.calpers.ca.gov/celebrating-10th-anniversary-cal...
- downrightmike 8mo ago
  Until PE fleeces them

kayo_20211030 8mo ago

>they recently switched to investing in private equity funds That's not recent at all. They've, for a long time, had large allocations to PE funds.

toomuchtodo 8mo ago

> However, they recently switched to investing in private equity funds and now they are getting much better returns, without all the pesky moral issues involved with it. Investors Warn of 'Rot in Private Equity' as Funds Strike Circular Deals - https://news.ycombinator.com/item?id=46380751 https://news.ycombinator.com/item?id=46380751 - December 2025 Once Wall Street’s High Flyer, Private Equity Loses Its Luster - https://news.ycombinator.com/item?id=46364566 https://news.ycombinator.com/item?id=46364566 - December 2025 Private Equity’s Latest Financial Alchemy Is Worrying Investors - https://news.ycombinator.com/item?id=44891882 https://news.ycombinator.com/item?id=44891882 - August 2025 People Are Worried About Private Market Liquidity - https://www.bloomberg.com/opinion/newsletters/2025-06-10/people-are-worried-about-private-market-liquidity https://www.bloomberg.com/opinion/newsletters/2025-06-10/peo... | https://archive.today/wJ3Uf https://archive.today/wJ3Uf - June 10th, 2025 Private Equity Fundraising Plunges Amid Struggle to Return Cash - https://www.bloomberg.com/news/articles/2025-05-27/private-equity-fundraising-plunges-amid-struggle-to-return-cash https://www.bloomberg.com/news/articles/2025-05-27/private-e... | https://archive.today/hxvzb https://archive.today/hxvzb - May 27th, 2025 Private Equity Firms Hunt for Alternate Ways to Return Investor Cash - https://www.bloomberg.com/news/newsletters/2025-05-14/private-equity-firms-hunt-for-alternate-ways-to-return-investor-cash https://www.bloomberg.com/news/newsletters/2025-05-14/privat... | https://archive.today/6UzBk https://archive.today/6UzBk - May 14th, 2025 Unlocking a potential US$3.8 trillion opportunity for private equity firms - https://www.deloitte.com/us/en/insights/industry/financial-services/private-equity-liquidity-challenges-and-fundraising-strategies.html https://www.deloitte.com/us/en/insights/industry/financial-s... - December 16th, 2024

lokar 8mo ago

I would not be so sure they are getting better real returns. The mostly made up marks come out infrequently and seem to go down very slowly. We won't know the return until the investment is over and capital is returned. This kind of deceit is one of the main services PE funds provide

diggyhole 8mo ago

Oil and gas is bad but private equity which can act like a loan shark is fine!