Private Equity Investments Generated an Additional $2.5 Billion for Missouri Teachers

Today, the American Investment Council (AIC) released the first video in a new series of interviews conducted by Hill TV examining how private equity investments are supporting the retirements of dedicated public servants across America. The first video features an interview with Craig Husting, who is the Chief Investment Officer (CIO) for the Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS). Husting discusses how the pension’s private equity investments have generated billions of dollars for Missouri education employees:

If you look at our total earnings after fees and expenses in private equity since the inception of our program in 2003, it’s now $4.9 billion dollars,” said PSRS/PEERS Chief Investment Officer Craig Husting. Without the investment in private equity, we would have $2.5 billion less in our retirement system todayThat’s money that comes directly out of the pockets of our teachers and our school districts.

The American Investment Council recently released its annual public pension study, which examined the investments and returns of America’s largest public pension funds. PSRS/PEERS placed sixth in the rankings, with Missouri’s more than 284,000 active and retired teachers and education employees benefitting from a 14.70 annualized 10-year return from private equity investments. Husting finished the interview by praising private equity for the industry’s record on transparency:

Many people think there is very little transparency when you invest in a private equity fund, and that is just not the case especially for larger investors,” said PSRS/PEERS Chief Investment Officer Craig Husting. We get full transparency and a full look through to everything the private equity fund is doing, which gives us comfort from an investment standpoint.

Husting’s interview with The Hill is the first in a new series of videos which will feature experts with first-hand knowledge of how private equity supports public pension beneficiaries.

Watch the full interview here.

Read the American Investment Council’s recently released public pension report here.