German pension funds for professionals (Versorgungswerke) are grappling with losses linked to venture capital and real estate investments, exposing governance weaknesses and legal risks across the sector.
The pension fund for Berlin dentists, Versorgungswerk der Zahnärztekammer Berlin (VZB), has booked losses of around €1.1bn on investments largely structured as loans and, to a lesser extent, real estate. A more precise figure is expected in February or March following a detailed review.
VZB has launched legal action against ApoBank, audit and consulting firm Forvis Mazars, the supervisory authority of the city of Berlin, and nine former and current committee members, alleging breaches of duty.
The lawsuit follows demands from members for the creation of a special fund, backed by the state, to secure dentists’ pensions.
Meanwhile, members are preparing legal action to force Bayerische Versorgungskammer (BVK) to disclose failed investments in US real estate. BVK, which manages €117bn for Bavaria’s professional pension funds, said it cannot provide detailed information on individual member investments due to pending legal proceedings in the US, confidentiality obligations and shareholder agreements.
Professional pension funds are not alone in feeling the strain. Years of low interest rates pushed institutions into alternatives, leaving them exposed as economic conditions deteriorated.
The pension fund for the chambers of industry and commerce, VdW Pensionsfonds, has struggled to appoint managers, while occupational pension vehicles known as Unterstützungskassen, used by small and mid-sized companies, are seeing contribution outflows as employers preserve cash amid economic stagnation.
This comes as Germany continues to miss the opportunity to introduce effective auto-enrolment to broaden occupational pension coverage.
In Switzerland, pension funds are increasingly adopting a total portfolio approach in response to market volatility, geopolitical risks, a strong Swiss franc and rising concentration risks.
Some, including Pensionskasse Basel-Stadt (PKBS), the CHF15.6bn pension fund of the city of Basel, continue to invest in US equities despite concerns over valuation and concentration.
Items to note:
- The IPE Real Estate Global Conference & Awards 2026 is taking place on Thursday, 21 May 2026, in Rome, at the Hotel Midas Roma & Villa Miani
Luigi Serenelli
IPE DACH Correspondent
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