Monday, August 25, 2008

State Pension to invest $900 mil in "private equity"

investments that are much riskier. Certainly hope they know what they are doing because TAXPAYERS will be on the hook if they screw-up. Taxpayers are paying an increasingly larger share of contributions to the pension fund and State employees are paying less each year...PLUS each year normally brings a tweak or two by the General Assembly that makes pensions more generous and thus more expensive to taxpayers.

Milt Capps has the story:
Earlier this year, the Tennessee General Assembly gave TCRS unprecedented authority to invest up to 3 percent of TCRS' $32 billion in assets in what are often labeled alternative investments.

The changes in state law signed by Gov. Phil Bredesen two months ago allow investment in "domestic and international venture capital, corporate buyouts, mezzanine and distressed debt, special situations, and secondary funds. Private equity investment vehicles may include, but are not limited to, limited partnerships, private placements, co-investments, funds-of-funds, and commingled funds."

It may take TCRS "three or four years to get to that [$900M] target," according to Ed Hennessee, the state's assistant treasurer for employee benefits and investments.