Private equity: pensioenfondsen ondernemen acties

The high performance fees paid to private equity firms have raised concerns and sparked discussions. In response, the Pension Federation sent a letter detailing these actions to the acting Minister Schouten of Poverty Policy, Participation, and Pensions.
The actions focus on transparency regarding the investment category and cost structure, communication with participants and society, and dialogue with stakeholders and foreign institutional investors regarding the high performance fees.
The primary focus is on the pivotal role of pension funds in managing the deferred earnings entrusted to them by participants. The responsibility is highlighted as one with a long-term horizon, where, in addition to optimizing financial returns, there’s an increasing expectation for pension funds to invest in a manner that contributes to a sustainable and livable world.
The decision-making criteria for investing in a specific category, including private equity, are outlined as fourfold: return on investment, risk assessment, costs, and adherence to socially responsible practices.
The letter delves into the subject of private equity and addresses concerns related to high performance fees associated with this investment category.
Private equity is portrayed as an attractive investment category, with specific mention of its positive impact on pension results, robust risk-return profiles, and its role in diversifying investment portfolios. The letter contends that private equity also plays a positive role in the broader economy, generating jobs and providing opportunities for impactful investments, such as those contributing to the energy transition, circular economy, and innovative healthcare.
The Pension Federation explicitly advises its members to pay extra attention to making private equity investments transparent, explaining the motivation behind them, and disclosing (reserved) costs. This may not have been done sufficiently in previous years. Recently, many pension fund boards have actively considered private equity in their decision-making processes.
The Pension Federation emphasizes its commitment to responsible investing and providing a sustainable and valuable pension for participants.