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Updated · Pensions & Investments · Apr 15Chicago Teachers' Pension Fund Rejects Cerity Partners Amid Private Credit Debate
6 articles · Updated · Pensions & Investments · Apr 15
- The Chicago Teachers' pension fund board voted against hiring Cerity Partners for asset management services.
- This decision comes amid ongoing debates about the private credit sector and recent elevated redemption requests in business development companies.
- Asset management executives continue to defend private credit, citing attractive opportunities and sustained institutional interest despite recent market upheaval.
Is a pension fund's bold rejection the first crack in private equity's takeover of the investment world? Should other clients of the newly merged Cerity-Verus be worried by this massive withdrawal? As Washington pushes private equity into 401(k)s, why are major pension funds running away? Can an investment firm truly serve its clients while being owned by private equity? Did Chicago's teachers just miss out on higher returns by rejecting a $1.3 trillion investment giant? After losing $13.8 billion, is the aggressive 'roll-up' strategy for investment firms now broken?