Private equity hearts unions
Public-sector unions raised some eyebrows when they joined the Democratic offensive against Bain Capital earlier this year. Despite their attacks on Romney’s firm for “putting profits above workers,” unions have ramped up their pension fund investments in private equity to record levels. The largest public-employee pensions had 11 percent of their holdings in private-equity investments, totaling $220 billion.
(Carlos Osorio - AP)
As it turns out, however, private equity is even more dependent on union investments than the other way around. Since 2006, “U.S. private equity firms have received approximately 26% of all fund commitments from U.S. public pension systems,” Fortune’s Dan Primack points out. That could accordingly make private-equity managers on Wall Street a bit squeamish of the Republican attacks on public-sector unions--i.e., their customers. Romney, for one, has backpedaled on any remarks suggesting that he wants to cut public-sector jobs for teachers and firefighters.
(SOURCE: FORTUNE)
- Spam
- Obscene
- Duplicate
Blog Contributors
Ezra Klein
Ezra Klein is the editor of Wonkblog and a columnist at the Washington Post, as well as a contributor to MSNBC and Bloomberg. His work focuses on domestic and economic policymaking, as well as the political system that’s constantly screwing it up. He really likes graphs, and is on Twitter, Google+ and Facebook. E-mail him here.
Neil Irwin
Neil Irwin is a Washington Post columnist and the economics editor of Wonkblog. Each weekday morning his Econ Agenda column reports and explains the latest trends in economics, finance, and the policies that shape both. He is the author of “The Alchemists: Three Central Bankers and a World on Fire.” Follow him on Twitter here. Email him here.
Sarah Kliff
Sarah Kliff covers health policy, focusing on Medicare, Medicaid and the health reform law. She tries to fit in some reproductive health and education policy coverage, too, alongside an occasional hockey reference. Her work has appeared in Newsweek, Politico, and the BBC. She is on Twitter and Facebook.
Brad Plumer
Brad Plumer is a reporter focusing on energy and environmental issues. He was previously an associate editor at The New Republic. Follow him on Twitter. Email him here.
Dylan Matthews
Dylan Matthews covers taxes, poverty, campaign finance, higher education, and all things data. He has also written for The New Republic, Salon, Slate, and The American Prospect. Follow him on Twitter here. Email him here.
Loading...
Comments