[vondur]

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.

[ineptech]

> 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]

Here's a link to their private equity fund status: 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-cal...

[toomuchtodo]

> 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 - December 2025

Once Wall Street’s High Flyer, Private Equity Loses Its Luster - 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 - August 2025

People Are Worried About Private Market Liquidity - https://www.bloomberg.com/opinion/newsletters/2025-06-10/peo... | 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-e... | 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/privat... | 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-s... - December 16th, 2024

[kayo_20211030]

>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.

[lokar]

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

[sidewndr46]

So is that basically a pensionwashing scheme?

[NoboruWataya]

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.

[vondur]

Pretty much spot on.

[diggyhole]

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