16.02.2015 - Future Fund backs Calpers’ ‘less is more’ stance on private equity
The head of one of the world’s largest investors in private equity believes Calpers, the US’s biggest pension fund, was right to slash the number of private equity managers it uses in what is a further blow to the sector. Calpers, or the California Public Employees’ Retirement System, told the FT last month that it was hoping to cut the number of private equity managers it uses by more than two-thirds to 120 in order to cut costs. David Neal, managing director of the Future Fund, Australia’s A$109bn sovereign wealth fund, said: “There just are not enough decent private equity managers around to justify the fees. Calpers was right; the fees are just too high to warrant having 300 firms.” The Future Fund, set up in 2006 to provide pensions for public servants, has almost a third of its assets in private equity, alternatives and infrastructure...............................................Full Article: Source