Like second marriages, private equity has become a triumph of hope over experience.
Calpers, the nation's biggest public pension fund, decided Monday to allow its investment staff increase its asset allocation for private equity and venture capital investments and to reduce its stock holdings.
We are not making it up. Private equity limited partners like CalPERS have no idea what they are paying in carry fees, one of the biggest costs they incur.
Dan Primack of Fortune has weighed in on what he calls the private equity "mess" at CalPERS, in an important new story, "CalPERS still can't get out of its own way on private equity."
CalPERS staff and outside experts went to considerable lengths distort data and abuse analytical methods to make the case that only private equity could offer the allegedly superior returns needed to meet CalPERS' targets. The fact ...