Calif. Pension Pushes Pool To Lower Fees

Mar 27 2014 | 11:20am ET

A group of public pension funds, led by California’s Orange County Employees Retirement System, are joining forces to lower the cost of their private-equity investments.

OCERS, which manages $11.5 billion, this week hired Pantheon Ventures to run the p.e. pool, which will be open to smaller retirement plans. The pension hopes that, as a group, the plans will have the weight to win fee reductions from private equity managers.

“We’ve demonstrated the effectiveness of collective purchasing and economies of scale,” OCERS chief investment officer Girard Millar told Bloomberg News. The program could save OCERS, which will invest $50 million to $100 million in each of three years, about $5 million in fees alone.

Others plans looking to join the group include those of neighboring San Bernardino County and the state of Wyoming. Those systems that commit before September will be eligible for a discount.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...