The Myth of Private Equity by Jeffrey Hooke

The Myth of Private Equity by Jeffrey Hooke

Author:Jeffrey Hooke
Language: eng
Format: epub
Tags: BUS036000, Business & Economics/Investments & Securities/General, BUS079000, Business & Economics/Government & Business
Publisher: Columbia University Press
Published: 2021-10-05T00:00:00+00:00


Source: Meketa Investment Group.

Wall Street investment management fees can be a considerable part of state expenditures. For example, Maryland’s $496 million in fees in fiscal 2019 was roughly equal to the state’s entire budget for higher education financial aid.14 Because the pension plan’s investment expenses are off-budget, a common practice among states, the Maryland legislature does not vote on such fees. States, universities, and foundations should take note of what others are paying. In 2020, New Jersey’s stand-alone PE fees as a percent of underlying PE assets were 2.8 percent. Total alternative asset investment expenses (including PE) were 2.6 percent of the underlying assets. Applying this 2.6 percent metric to the Ford Foundation’s $14 billion endowment, which is 60 percent invested in alternative assets, suggests $215 million in such fees, about 40 percent of Ford’s annual grant total. In an email, Ford Foundation’s chief investment officer, Eric Doppstadt, disputed this calculation and suggested, without evidence, that the foundation’s fees are lower than New Jersey’s.15



Download



Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.