Private Equity Strengthens Retirement for Teachers Across America

Today, the American Federation of Teachers (AFT) released a misleading report that threatens the retirements of teachers across America.

The reality is that private equity has delivered strong returns that strengthen retirements for teachers in communities across our nation, including New York, Texas, and California.  Private equity firms work directly with teachers’ pensions and other limited partners to make sure their investment goals are aligned and both parties are on the same page.

Teachers – along with firefighters and other dedicated public servants – are able to have more confidence about their retirement due to the returns of private equity. Public pension funds from across the nation invest 9% of their portfolios with private equity because the industry has a proven track record of maximizing returns and providing stability for hardworking Americans.

Additionally, private equity-backed companies have been working throughout the COVID-19 pandemic to make schools safer and more accessible for teachers, students, and parents.

Instead of playing Washington DC politics and supporting legislation that will destroy millions of jobs across the country and threaten the pensions of all public sector workers, the AFT should recognize private equity’s positive impact on teacher’s retirements.  AFT’s criticism of private equity is refuted by other pension fund managers who say private equity strengthens pensions.

Private Equity’s Strong Record of Supporting Teachers, Students, and Parents
Sample of 5 Pensions Across America that Benefit from Private Equity’s Strong Returns

  • Teachers Retirement Association of Minnesota  – 15.9% return over 10 years
  • Public School and Education Employee Retirement Systems of Missouri14.7% return over 10 years
  • New York State Teachers Retirement System13.70% return over 10 years
  • Michigan Public School Employees Retirement System13% return over 10 years
  • Teacher Retirement System of Texas12.4% return over 10 years

Private Equity Helping Teachers, Students, and Parents with Back to School:

  • Private equity-backed companies have been helping to make schools safer and more accessible for students, parents, and teachers throughout the pandemic.  In communities across the country, businesses owned by private equity firms have provided free access to online learning platforms, made digital textbooks and virtual classroom software available to students and teachers, and worked with individual school districts to develop health evaluation, testing, and reopening plans. Learn more here.

Supporting Jobs Across America

  • Private equity directly employs 8.8 million Americans across all fifty states. Altogether, private equity supports 5 percent of the country’s GDP and has a total economic impact above $1.1 trillion.