Labor Slams Pensions for Burnishing Image of Private Equity

Source: The American Prospect
by Lee Harris

“The chief executive of Washington State Investment Board (WSIB), one of the nation’s largest pension funds, has become a major-league booster for private equity firm Kohlberg Kravis Roberts’s Ownership Works, a nonprofit that proposes to help companies distribute equity shares to employees. CEO Allyson Tucker promoted the program at an investor conference last month in California, and sits on a leadership council for the organization with directors from other pensions, including California’s CalPERS, the State of Michigan Retirement System, and the New York State Common Retirement Fund. But the support from top pensions for KKR’s new public relations gambit has run into resistance from organized labor. Along with insurers and sovereign wealth funds, pensions have dramatically grown their allocations to private equity in recent years, forking over high fees in the hope that more exclusive markets deliver higher profits and withstand downturns.” (06/17/22)