Pension Funds Push for More Disclosure Rules for Private-Equity, Hedge Funds - WSJ

June 6, 2022

Authors Heather Gillers and Paul Kiernan cite Burgiss’ performance data in this Wall Street Journal article regarding a federal proposal that would force hedge funds and private-equity funds to provide more disclosures to investors.

“University endowments, insurance funds and retirement funds serving teachers and firefighters are urging the Securities and Exchange Commission to move forward with a proposed rule that would ensure private-fund investors receive annual audits and quarterly statements. The rule, which has been heavily criticized by the private funds and Republicans, would also prohibit fund managers from passing along certain legal costs and limit the funds’ ability to insulate themselves from lawsuits. Pension funds make less money on their private-equity investments than other types of institutional investors do. The average annualized return for big public pension plans for the 20 years ended June 30, 2021, was 11.8%, according to an analysis of data from the Boston College Center for Retirement Research on the five largest plans with July 1-June 30 fiscal years. Annualized returns for private-equity funds tracked by the data-analytics firm Burgiss for the same period were 13.4%.”

— Wall Street Journal

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