The Berlin public prosecutor’s office has opened an investigation into the Versorgungswerk der Zahnärztekammer Berlin (VZB), the €2.2bn pension fund for dentists.
Last month, the pension fund admitted to facing financial distress after a series of high-risk and disproportionate investments in private equity, start-ups, real estate and unsecured loans.
Three law firms, commissioned by VZB to carry out an independent legal review, found evidence of significant breaches of duty, violations of statutory and internal investment guidelines, and failures in control mechanisms.
Potential claims for damages are now being pursued against those deemed responsible, according to local newspaper Berliner Zeitung.
A spokesperson confirmed to IPE that the investigation began in July but declined to comment on the reasons for the probe. VZB did not respond to a request for comment.
The internal investigation was led by lawyers specialising in criminal corruption law, while Baker Tilly was appointed to conduct a special audit, said Gerhard Gneist, member of VZB’s representative assembly and chair of the association Initiative of Independent Dentists Berlin (IUZB e.V.), in a statement on the fund’s admission of financial distress.
Officials at Baker Tilly declined to comment on the matter.
According to Gneist, members of VZB’s administrative committee instructed the criminal law attorneys to establish direct contact with the criminal investigation authorities, and met with the Berlin public prosecutor’s office.
Shifting allocations
During the period of low and negative interest rates, VZB – like other professional pension schemes (Versorgungswerke) – moved away from fixed income, recording above-average returns mainly from corporate investments, Gneist said.
Under its 2024 asset allocation strategy, the fund sought to increase bond holdings while reducing illiquid investments such as private equity and real estate. Gneist said this was a medium to long-term process, requiring time to find suitable buyers and generate proceeds.
Accelerating divestments from private assets risked “significant losses in value and creditworthiness” and could harm VZB’s reputation as a business partner, he warned.
In the first half of 2025, VZB had the opportunity to sell a business with a large property for a “three-digit million” sum, which would have significantly strengthened the fund’s financial position. However, Gneist said the management committee did not open negotiations and the offer was withdrawn.
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