CalPERS Wants More Fee Cuts

Apr 28 2010 | 7:45am ET

Fresh from winning fee concessions from private equity firm Apollo Global Management, the nation’s largest public pension fund is hungry for more fee breaks.

The California Public Employees’ Retirement System hopes to win similar fee deals with all of the private equity firms it has “significant” relationships with, chief investment officer Joseph Dear said Monday.

Joseph DearJoseph Dear“It just drives me nuts when I think about managers who are generating profits off the management fees,” Dear said at the Milken Institute Global Conference in Beverly Hills, Calif. “That’s why this drive to get better terms is so fundamentally important.”

Last week, Apollo agreed to cut the fees it charges CalPERS by $125 million over the next five years. But the fee breaks will not come from p.e. funds the pension invests in, but from $2 billion in separately-managed fixed-income accounts that Apollo manages exclusively for CalPERS. And the pension, which has $213 billion in assets, isn’t stopping at p.e. firms.

“We’re looking at private equity and hedge funds and some real estate for better terms and conditions,” Dear said.

Dear argued that, with p.e. firms struggling to raise money for new funds, time is of the essence in winning a new fee regime.

“There’s never been a better time to press their case and if we don’t take advantage it’s a missed opportunity,” he said.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.