Pension funds launch new consultant searches after Cerity-Verus merger

9 articles · Updated · Barron's · Apr 29

The $13.7 billion Chicago Teachers’ Pension Fund reversed its selection of Verus, and San Luis Obispo County Pension Trust is issuing a new RFP, citing concerns over Cerity’s private equity ownership.
Chicago Teachers’ extended its contract with Callan for one year while restarting its consultant search, and San Luis Obispo will invite Cerity to reapply. Both funds cited reputational and independence risks from the merger.
Cerity, now nearly 50% owned by private equity, faces scrutiny from institutional clients over potential conflicts of interest and transparency. Other pension fund clients are also reviewing their relationships with the merged firm.

Can pension funds trust consultants driven by a PE firm's exit strategy?

When a consultant's advice is owned by private equity, who truly comes first?

Can PE capital improve consulting, or is the conflict of interest unavoidable?

As Wall Street buys up advisors, is unbiased financial guidance becoming extinct?

How can clients shield themselves from conflicts when their consultant is acquired?