Asset Managers, Private Equity, Public Funds

AIC Taps New Chairman; Mass PRIT Tops 2018 Public Pension Study

Steve Klinsky

The American Investment Council (AIC) has elected Steve Klinsky as chairman of its board of directors. Klinsky is the founder and chief executive officer of New York-based New Mountain Capital, a growth-oriented private equity firm that manages more than $20 billion of assets. Separately, AIC recently released its 2018 Public Pension Study, with the Massachusetts Pension Reserves Investment Trust (Mass PRIT) taking top honors for returns generated from its private equity investing.   

“The AIC is thrilled to welcome Steve as our Chairman,” AIC President and CEO Mike Sommers stated in a release.  “Steve is a thoughtful leader and successful businessman, with an exceptional track record of business-building for over thirty years. As a trailblazer in private equity and as founder and CEO of his own firm, he represents the thousands of hands-on private equity professionals and private equity owner-operators who work each day to create jobs and build better businesses…”

“I have been a member of the AIC Board of Directors for seven years, and it has always been a pleasure to be a part of the AIC’s efforts,” Klinsky stated in the release. “Over the years, I have watched the association help the American public better understand private equity’s positive potential. As chairman, I hope to help the AIC continue to explain that private equity firms work in a socially positive way to bring capital, strategies, and operating talent to thousands of companies every day.”

Klinsky, who succeeds Ken Mehlman, global head of public affairs at KKR, as AIC board chairman, was a pioneer in the private equity field, as co-founder of Goldman Sachs & Co.’s original leveraged buyout group from 1981-1984, and as a partner of Forstmann Little & Co. from 1984-1999.

2018 Public Pension Study

Late last month, AIC released its 2018 Public Pension Study, which analyzes investment returns by 163 U.S. public pension funds and highlights how private equity continues to outperform other asset classes.

The study shows private equity continues to lead all asset classes in long-term investment performance, with private equity’s median 10-year annualized return of 8.6% surpassing public equity’s 6.1%, fixed income’s 5.3%, and real estate’s 4.7%.

Source: American Investment Council

“Our annual Public Pension Study underscores private equity’s longstanding position as an essential component in achieving public pensions’ long-term investing goals,” Sommers stated in a release. “The financial benefits of these returns directly impact millions of dedicated American public servants like teachers, firefighters, and police officers who rely on their pension income in retirement.”

The study names the 10 funds with the highest private equity returns.  Mass PRIT took home the top spot, earning a 10-year annualized return of 13.37%. Mass PRIT has topped the list three times since the study was first published in 2012.

Mass PRIT manages total asset of approximately $72 billion, with some $7.5 billion invested in private equity.

“We are in this asset class for the long term, which has given us greater flexibility to partner with industry-leading investment managers to drive performance higher,” according to Michael Bailey, director of private equity at Mass PRIM, in a released statement. “The AIC‘s #1 ranking of the portfolio’s 10-year returns shows that our private equity team’s investment approach and the managers’ skills are paying off for the pension fund’s beneficiaries.”

The Ohio School Employees Retirement System finished second with 13.1% returns, and the Utah Retirement System finished third with 12.05% returns. The study also lists the 10 pensions with the highest levels of private equity investment.

You may also like...