Private equity assets under management are higher than they’ve ever been – estimated at $3.5 trillion – but their role in retirement funds is quickly coming into serious question.
These questions center on the funds’ opacity, risk and the often enormous fees guaranteed to fund managers no matter how they perform.
Siedle believes the “blanket secrecy” in private equity funds and their relationship with trustees of public pensions is alarming.
“If you had told me 30 years ago fees would go up and disclosure would become less common I would have told you you’re nuts. The movement then was to lower fees and improve disclosure, which is the exact opposite of what we have now.”