CalPERS is exploring having BlackRock hide its private equity problems under a costly rug.
Edward A.H. Siedle, a pension fraud investigator, is seeking to investigate Calpers to determine how much it pays in private equity fees.
Investors in private equity like public pension funds have no idea how much they are paying in costs and fees. That allows for excessive costs and chicanery to continue.
CalPERS takes some steps to clean its private equity house by getting carry fee information, but only by virtue of feeling serious external pressure. And the way it responded show that the rot runs deep.
Today, the Financial Times has a prominent article on how the giant public pension fund and private equity investing heavyweight CalPERS has a new push on to reduce the fees that it pays to private equity firms. This would all be sa...