Is Uncle Sam The Biggest Enabler Of Private Equity Jobs "Offshoring"?

Tyler Durden's picture

Lately, it has become particularly fashionable to bash private equity, especially among those workers in the employ of the state. The argument, in as much as capitalism can be summarized in one sentence, is that PE firms issue excess leverage, making bankruptcy inevitable (apparently those who buy the debt are unaware they will never get their money back), all the while cutting headcount to maximize cash flow (apparently the same PE firms don't realize that their investment will have the greatest terminal value to buyer if it has the highest possible growth potential, which means revenue and cashflow, which means proper CapEx investment, which means streamlined income statement, which means more efficient workers generating more profits, not less). The narrative ultimately culminates with some variation on a the theme that PE firms are responsible for offshoring jobs. While any of the above may be debated, and usually is especially by those who have absolutely no understanding of finance, one thing is certain: when it comes to bashing PE, America's public workers should be the last to have anything negative to say about Private Equity, and the capital markets in general. Why? Because when it comes to fulfilling those promises of a comfortable retirement with pensions and benefits paying out in perpetuity, always indexed for inflation, and otherwise fulfilling impossible dreams, who do America's public pension fund administrators go to? The very same private equity firms that have suddenly become outcast number 1.

Here is the New York State Common Retirement Fund, which "holds assets in trust for more than one million employees and retirees from State governments, most local governments and some public authorities." The fund manages $150.6 billion as of March 31, 2012; it is the third largest pension plan in the US, with its California cousin: Calpers, the biggest. Some facts about the pension fund:

Member Information:

  • Overall membership in NYSLRS: 1,059,398
    • 656,224 members (active or vested)
    • 403,174 retirees and beneficiaries
    • 95% are members of ERS; 5% are members of PFRS

Average Pensions:

  • Average pension for all ERS retirees in FY 2012: $20,241
  • Average pension for all PFRS retirees in FY 2012: $42,259

Employer Contribution Rates:

  • FY 2014 average contribution rates: 20.9 percent of payroll for ERS; 28.9 percent of payroll for PFRS.
  • Employers contributed roughly $4.59 billion to the Retirement System in FY 2012.
  • Employees contributed $273.2 million in FY 2012.
  • Employer and employee contributions have helped the Fund remain well funded.

In other words, it is the fund's obligation to allocate cash to places where it will generate the highest returns. So where does the NY Retirement fund go to make sure the money of its public workers is best managed? This is where: thousands and thousands of private equity firms (from the source, in reverse chronological order):

2007

Kline Hawkes Growth Equity Fund through the Aldus/NY Emerging Fund, $15 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on February 7.

Globespan Capital Partners V through the GKM Newport/NY Venture Capital Fund, $15 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on February 22.

Green Equity Investors V, $125 million commitment. CRF has been an investor with Green since 2002. No placement agents were involved inCRF’s investment. The commitment closed on March 1.

Draper Fisher Jurvetson IX through the GKM Newport/NY Venture Capital Fund, $25 million. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 2.

Founders Equity, $18 million additional commitment. This brings the total committed to Founders to $38 million. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 6.

Lion Capital II, €125 million commitment. This is an existing relationship for CRF. Citigroup received a fee from Lion for placement agent services. The commitment closed on March 7.

Clearwater Capital Partners III, $50 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 13.

TPG Star through the Hudson River Fund II, $25 million commitment. CRF has invested with TPG since 1997. No placement agents were involved in CRF’s investment. The commitment closed on March 14.

Apex Investment Fund VI through the GKM Newport/NY Venture Capital Fund, $12.5 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 15.

Technology Partners VIII through the GKM Newport/NY Venture Capital Fund, $20 million. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 15.

A venture capital fund through the Fairview Ventures II-NY Fund, $7.5 million. For competitive reasons the identity of the fund is not disclosed. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 15.

Saw Mill Capital Partners II through the Hudson River Fund II, $20 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 19.

SAIF Partners III, $50 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 20.

Psilos Group Partners III through the GKM Newport/NY Venture Capital Fund, $20 million. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 28.

Tudor Ventures III through the GKM Newport/NY Venture Capital Fund, $10 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 30.

Summer Street Capital II through the Hudson River Fund II, $5 million commitment. CRF has been an investor in Summer Street since 2000. No placement agents were involved in CRF’s investment. The commitment closed on March 30.

KKR Asia Fund, $50 million commitment. KKR is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on June 20.

Accent 2008 through the Access/NY European Middle Market Buyout Fund, €10 million commitment. No placement agents were involved in CRF’s investment. The commitment closed on June 26.

Kohlberg Investors VI through the Hudson River Fund II, $25 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on June 29.

Carlyle Partners V, $150 million. This is an existing relationship for CRF. Carlyle reported that no placement agents were involved in CRF’s investment in Carlyle Partners V. The commitment closed on September 7.

A private equity fund through the Hudson River Fund II, $75 million commitment. This is an existing relationship for CRF. For competitive reasons, the identity of the fund is not disclosed. No placement agents were involved in CRF’s investment. The commitment closed on September 10.

OCM Opportunities Fund VIIb, $200 million commitment. CRF has been an investor with OCM since 1999. No placement agents were involved in CRF’s investment. The commitment closed on September 19.

Roark Capital Partners II through Hudson River Fund II, $15 million commitment. CRF has been an investor in Roark since 2005. Lazard received a fee from Roark for placement agent services.  The commitment closed on September 28.

TXU through Strategic Co-Investment Partners, $25 million commitment. No placement agents were involved in CRF’s investment. The commitment closed on September 28.

Platinum Equity Capital Partners II through the Hudson River Fund II, $20 million commitment. This is a new fund relationship for CRF. Citigroup Global Markets received a fee from Platinum for placement agent services. The commitment closed on October 12.

RLJ Partners through the Aldus / NY Emerging Fund, $20 million commitment. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on October 15.

Warburg Pincus Private Equity Partners X, $350 million commitment. CRF has been an investor with Warburg since 1989. No placement agents were involved in CRF’s investment. The commitment closed on October 19.

European buyout fund through the Access/NY European Middle Market Buyout Fund, €6 million commitment. CRF will release the name of the fund once the fund has formally closed with all investors. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on October 23.

High Road Capital Partners Fund I through the Hudson River Fund II, $15 million commitment. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on October 30.

Paladin III (NY), $25 million commitment. CRF has invested with Paladin since 2004. No placement agents were involved in CRF’s investment. The commitment closed on November 15.

Blum Strategic Partners IV, $75 million commitment. CRF has invested with Blum since 2001. No placement agents were involved in CRF’s investment. The commitment closed on November 19.

GESD II through the Hudson River Fund II, $15 million commitment. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on December 5.

Nogales Investors Fund II, $10 million additional commitment. This is an existing relationship for CRF. Nogales reported that Liati Capital was involved in the transaction as a placement agent but Liati agreed not to be compensated. The additional commitment closed on December 11.

Giza Venture Fund V through the Hudson River Fund II, $15 million commitment. CRF has invested with Giza since 2005. No placement agents were involved in CRF’s investment. The commitment closed on December 20.

 

2008

FIMI Opportunity IV through the Hudson River Fund II, $20 million commitment. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 2.

N+1 Private Equity Fund II through the Access/NY European Middle Market Buyout Fund, €10 million commitment. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 9.

Bridgepoint Europe IV, €100 million commitment. CRF has been an investor with Bridgepoint since 1998. No placement agents were involved in CRF’s investment. The commitment closed on January 18.

Craton Equity Partners through the Aldus / NY Emerging Fund, $10 million commitment. This is a new fund relationship for CRF. Arvco Capital received a fee from Craton for placement agent services. The commitment closed on January 28.

Performance Venture Capital Fund II, $75 million commitment. Performance is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on March 26.

Quaker BioVentures through the Aldus/NY Emerging Fund, $10 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on April 25.

Paladin III through the Hudson River Fund II, $15 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on April 30.

CVC European Equity Fund V, €150 million commitment. CVC is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed May 7.

Levine Leichtman Capital Partners IV, $50 million commitment. Levine Leichtman is a woman-owned firm, and is an existing relationship for CRF. Wetherly Capital Group received a fee from Levine Leichtman for placement agent services. The commitment closed May 22.

TPG Partners VI, $300 million commitment. TPG is an existing relationship for CRF. No placement agents were involved in CRF’s investment, which closed June 9.

SW Pelham Fund III through the Aldus/NY Emerging Fund, $10 million commitment. SW Pelham is a minority and woman-owned firm and is a new relationship for CRF. Potomac Capital Markets received a fee from SW Pelham for placement agent services. The commitment closed June 2.

Lindsay Goldberg III, $250 million commitment. Lindsay Goldberg is an existing relationship for CRF. No placement agents were involved in CRF’s investment, which closed July 30.

VantagePoint CleanTech Partners II through the GKM Newport/NY Venture Capital Fund, $50 million commitment. The commitment is part of the Green Strategic Investment Program. This is an existing relationship for CRF. The commitment closed July 31.

Ares Corporate Opportunities Fund III, $100 million commitment. Ares is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed September 16.

Asia Alternatives Capital Partners II, $50 million commitment. Asia Alternatives is a minority and women-owned firm. Asia Alternatives is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed September 24.

GenNx360 Capital Partners, $60 million commitment. GenNx360 is a minority-owned firm. GenNx360 is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed September 30.

Jerusalem Venture Partners Media V through the Hudson River II, $10 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. This commitment closed October 15.

Aisling Capital Partners III, $45 million commitment. Aisling is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed October 17.

 

2009

NYSCRF Pioneer Partnership Fund A, $200 million commitment. Pioneer Partnership A is one of three captive fund-of-funds within the emerging manager program and is managed by Bank of America Capital Access Funds. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 21.

NYSCRF Pioneer Partnership Fund I, $100 million commitment. Pioneer Partnership I is one of three captive fund-of-funds within the emerging manager program and is managed by Parish Capital Advisors. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 21.

NYSCRF Pioneer Opportunities Fund I, $250 million commitment. Pioneer Opportunities I is one of three captive fund-of-funds within the emerging manager program and is managed by Parish Capital Advisors. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 21.

Softbank Capital Technology New York, $20 million additional commitment. This is in addition to an existing $30 million commitment. Softbank NY is part of the Instate Program. Softbank is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on January 29.

DFJ Gotham Fund II, $25 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed March 12.

PCGI/NYSCRF Emerging Europe Investment Program, $100 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed March 13.

Falcon Strategic Partners III, $50 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on June 30.

Carpenter Community BancFund through the NYSCRF Pioneer Partnership Fund B, $30 million commitment. Carpenter is part of CRF’s Emerging Manager program. This is a new fund relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on June 30.

TA XI, $100 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed July 29.

Hellman & Friedman Capital Partners VII, $200 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on September 8.

Hudson Clean Energy Partners, $100 million commitment. This is a new relationship for CRF. No placement agents were involved in CRF’s  investment. This commitment is part of the Comptroller’s Green Strategic Investment Program. The commitment closed on October 30.

Clearlake Capital Partners II, $15 million commitment through the NYSCRF Pioneer Partnership Fund - A. Clearlake II is part of CRF’s Emerging Manager program. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on November 2, 2009.

DeltaPoint Capital IV (New York), $25 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on November 6, 2009.

Bunker Hill Capital II, $25 million through the Pioneer Partnership Fund B. Bunker Hill is part of CRF’s Emerging Manager program. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on December 7, 2009.

Relativity Fund, $30 million through the Pioneer Partnership Fund B. Relativity is part of CRF’s Emerging Manager program. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on December 11, 2009.

Bunker Hill Capital II, $25 million through the Pioneer Partnership Fund B. Bunker Hill is part of CRF’s Emerging Manager program. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on December 7, 2009.

Relativity Fund, $30 million through the Pioneer Partnership Fund B. Relativity is part of CRF’s Emerging Manager program. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on December 11, 2009.

 

2010

DBL – The California Equity Fund, $7.5 million through the NYSCRF Pioneer Partnership Fund A. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on May 30.

Gilde Buyout Fund IV, €20 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on June 29.

Blackstone/GSO Capital Solutions Fund, $50 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed on July 9.

High Peaks Seed Ventures NY, $15 million. This is an existing relationship for CRF and part of CRF’s In-State Appleseed Venture Capital Program. No placement agents were involved in CRF’s investment. The commitment closed August 2.

Institutional Venture Partners XIII, $45 million. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed August 17.

Blackstone Capital Partners VI, $300 million. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed August 17.

Oaktree Capital Management, $200 million. CRF invested $100 million in OCM Opportunities Fund VIII and $100 million in OCM Opportunities Fund VIIIb. This is an existing relationship with CRF. No placement agents were involved in the investment. The commitments closed September 30.

Grey Mountain Capital Partners, $12.5 million through the NYSCRF Pioneer Partnership Fund A. This is a new relationship for CRF. No placement agents were involved in the investment. The commitment closed October 18.

JMI Equity Fund VII, $40 million. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed November 19.

Capital Alliance Private Equity III Limited, $15 million through the NYSCRF Pioneer Partnership Fund B. This is a new relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed November 27.

Vista Foundation Fund I, $50 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed December 17.

KKR China Growth Fund, $125 million commitment. This is an existing relationship for CRF. No placement agents were involved in CRF’s investment. The commitment closed December 30.

 

2011

Centerbridge Capital Partners II, $150 million. This is a new relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on January 18.

M² NY Pioneer Fund, $100 million. This is a new relationship for CRF. The commitment is part of the Comptroller's Emerging Manager program. No placement agents were involved in CRF's investment. The commitment closed on March 1.

FS Equity Partners VI, L.P., $80 million. This is an existing relationship with CRF. No placement agents were involved in the investment. The commitment closed April 21, 2011.

Dominus Capital Partners, $20 million through the NYSCRF Pioneer Partnership Fund A. This is a new relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on April 28.

Tenex Capital Partners, $25 million through the NYSCRF Pioneer Partnership Fund A. This is a new relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on April 29.

Access/NY European Middle Market Buyout Fund II - €200 million (two €100 million tranches) was committed. Access is an existing relationship for CRF. Access is a fund of funds focused on buyout opportunities in Europe. No placement agents were involved in CRF’s investment. The investment closed on May 4, 2011.

KSL Capital Partners III $115 million was committed. KSL is a buyout fund within the Private Equity Portfolio. This investment represents a new relationship for CRF. No placement agents were involved in the CRF’s investment. The investment closed on May 31, 2011.

Initiative & Finance FCPR I, €10 million, through the Access/NY European Middle Market Buyout Fund II. This is a new relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on May 12.

Asia Alternatives Capital Partners III, $50 million. This is an existing relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on May 20.

Snow Phipps II - $100 million commitment. Snow Phipps is a new relationship for CRF. No placement agents were involved in CRF’s investment. The investment closed on June 30, 2011.

New York Balanced Pool Asia Investors, $75 million. This is an existing relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed on June 23.

New York Co-Investment Pool Asia Investors, $125 million. This is an existing relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed July 1.

Litorina IV, €9.4 million through the Access/NY European Middle Market Buyout Fund II. This is an existing relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed July 7.

Endless LLP Fund III, €8.8 million through the Access/NY European Middle Market Buyout Fund II. This is an existing relationship for CRF. No placement agents were involved in CRF's investment. The commitment closed July 20.

New York Business Development Corporation, $100 million. NYBDC is an existing relationship for CRF. No placement agents were involved in this transaction, which closed on August 1.

Patria-Brazilian Private Equity Fund IV, $75 million commitment. Patria is a new relationship for CRF. No placement agents were involved the transaction, which closed on August 12.

Vista Equity Partners Fund IV, $300 million commitment. Vista Equity is an existing relationship for the CRF. No placement agents were involved in the transaction, which closed on August 31.

TPG Growth II, L. P., $200 million commitment. TPG is an existing relationship for the CRF. No placement agents were involved in the CRF’s investment. This investment closed on September 2, 2011.

Auger II, €10 million commitment. Auger is a new relationship acquired through the Access/NY European Middle Market Buyout Fund II Fund of Funds. This transaction closed on October 4, 2011.

Avenue Europe Special Situations Fund II (Euro), L. P. - €100 million commitment. Avenue is an existing relationship for the CRF. No placement agents were involved in the CRF’s investment. This investment closed on November 4, 2011.

Coutour Venture Partners II, L. P. - $10 million commitment. Contour is a new relationship for the CRF. No placement agents were involved in the CRF’s investment. This investment closed on November 10, 2011.

Hony Capital V, L.P., $100 million. Hony is a new relationship for CRF. No placement agents were involved in the investment, which closed on December 15, 2011.

Hony Capital V, L.P., $15 million discretionary commitment made through the New York Co-Investment Pool Asia Investors, L.P. No placement agents were involved in the investment, which closed on December 15, 2011.

Hony Capital V, L.P., $4 million non-discretionary commitment made through the New York Balanced Pool Asia Investors, L.P. No placement agents were involved in the investment, which closed on December 15, 2011.

Access 2012, L.P., €10 million. Access is a new relationship for CRF acquired through the Access / New York European Middle Market Buyout Fund II, L.P. No placement agents were involved in the investment, which closed on December 21, 2011.

Searchlight Capital, L.P., $150 million. Searchlight is a new relationship for CRF. No placement agents were involved in the investment, which closed on December 29, 2011.

Acon Equity Partners III, L.P., up to $120 million. Acon is an existing relationship for CRF. No placement agents were involved in the investment, which closed on December 30, 2011.

 

2012

Brightwood Capital SBIC I, LP, $15 million. The Brightwood commitment was made through the M² Y Pioneer Fund, L. P. This is a new relationship for CRF. No placement agent fees were involved in the CRF’s investment, which closed on February 3, 2012.

Actera Partners II, LP, $15 million. Actera is a new relationship through the 57 Stars Emerging Europe Fund (NYSCRF), LP. No placement agent fees were involved in the CRF’s investment. This investment closed on February 7, 2012.

Monroe Capital Partners, LP, $10 million commitment. Monroe is a new relationship for the CRF through the NYSCRF Pioneer Partnership Fund A. No placement agent fees were involved in the CRF’s investment. This investment closed on February 24, 2012.

Green Equity Partners VI, LP, $200 million commitment. Green is an existing relationship for the CRF. No placement agent fees were involved in the CRF’s investment. This investment closed on February 28, 2012.

Farallon Asia Special Situations Fund II, LP, $10 million commitment. Farallon Asia is a new relationship for the CRF through the NY Co-Investment Pool Asia Investors, LP. No placement agent fees were involved in the CRF’s investment. This investment closed on February 29, 2012.

Centerbridge Special Credit Partners II, L.P., $72.8 million commitment. Centerbridge is an existing relationship for the CRF. No placement agents were involved in the CRF’s investment, which closed March 1.

GenNx360 Capital Partners II, L. P., up to $125 million maximum commitment. GenNx360 is an existing relationship for the CRF. No placement agents were involved in the CRF’s investment, which closed March 2.

Siris Partners II, L. P., $20 million commitment. Siris is a new relationship through the M² NY Pioneer Fund. No placement agent fees were involved in the CRF’s investment. This investment closed on April 16, 2012.

Fortissimo Capital Fund III, L.P., $10 million commitment. This is a new relationship for CRF through the 57 Stars Emerging Europe Fund. No placement agents were involved in the investment, which closed on May 17, 2012.

Clearwater Capital Partners IV, L.P., $75 million commitment. This is an existing relationship for CRF. No placement agents were involved in the investment, which closed on May 15, 2012.

Quadriga Capital Private Equity Fund IV, L.P., €10 million commitment. Quadriga is an existing relationship through the Access/NY Middle Market Buyout Fund. No placement agents were involved in the investment, which closed on May 7, 2012.

Ares Corporate Opportunities Fund IV, L.P., $150 million commitment. Ares is an existing relationship for the CRF. No placement agent fees were involved in the CRF’s investment, which closed on June 29, 2012.

The Fifth Cinven Fund (Cinven V), L.P., €150 million commitment. Cinven is an existing relationship for the CRF. No placement agent fees were involved in the CRF’s investment, which closed on June 12, 2012.

Palatine Private Equity Fund II, L.P., £8.7 million commitment. Palatine is a new relationship for the CRF through the Access/NY Middle Market Buyout Fund II. No placement agents were involved in the CRF’s investment, which closed on July 6, 2012.

 

* * *

The list above includes only the private equity firms that the NY pension fund has invested cash in. It excludes the capital allocations to hedge funds (we will release that list once the hedge fund bashing begins) and other alternative asset managers: that list is also just as massive. Furthermore, the list is also only for one pension fund: we leave it to the more inquisitive readers to conduct the same analysis for other US pension funds. Going further back will certainly reveal many more names, among them, with virtual certainy, a rather infamous company known as Bain Capital.

For those who are still confused what the above list means, here is the summary: bash Private Equity all you want, but ask this: who is the biggest enabler of private equity's infamous "offshoring" - answer: Uncle Sam, whose desperate need to allocate cash for most efficient management of welfare resources, just happens to be one of the biggest (if not the biggest) source of "Equity" in Private Equity. Because without private equity, America's millions of civil servants would have little hopes of generating the kinds of pension, retirement and healthcare returns for the rest of their lives they have grown accustomed to expect.

And the last thing America, with its 350% in consolidated public and private debt/GDP can withstand, is its population suddenly realizing its entitlement hopes and dreams (excluding the $100 trillion in underfunded liabilities of course) rest in the hands of the same bankers that everyone loves so much to hate.