Letter from the US: Pensions and start-ups
By Maria Teresa ComettoNovember 2014 (Magazine)
Can pension funds play a greater role in stimulating start-ups and economic growth? Some US politicians think so and are trying to deploy public retirement assets for this goal. But critics claim that results have been disappointing so far, mostly because pension funds invest through private equity funds that demand very high fees. So a new idea is gaining support – pension funds investing directly in private companies, cutting out intermediaries.