New Head of Private Equity for the Texas Teachers’ Retirement System Says Private Equity is Essential
May 24, 2012
In a recent article in Private Equity International, Rich Hall, the new head of private equity for the Texas Teachers’ Retirement System said that private equity is, “essential to the fund generating the returns it needs to meet its obligations.”
“Rich Hall, the Teachers’ Retirement System of Texas’ new head of private equity, believes the facts tell the whole story about the benefits of private equity — regardless of the negativity surrounding the asset class stemming from attacks on US presidential candidate Mitt Romney’s past career as head of Bain Capital. During a recent interview with Private Equity International, Hall cited statistics that illustrated private equity’s benefits to the system: “We know that over the last 12 years our private equity portfolio has generated returns that are more than $3 billion higher than if we had invested that money in the public stock market.” The benefits of the asset class make the “politicisation” of private equity in this year’s US presidential campaign unfortunate, he said.”
Hall understands the important role private equity plays for the U.S. economy and Texas’s teachers. More than 42 percent of private equity investment comes from U.S. pension funds, securing the retirement of millions of Americans.
“It is important for everyone, including politicians, to understand the facts about private equity investments. The fact is that the asset class is a valuable piece in TRS’ overall portfolio allocation,” Hall said. “It delivers higher returns than most other asset classes and helps us meet our obligations to provide retirement income to 1.3 million teachers.
“If we didn’t achieve those returns from private equity, where would that $3 billion come from? Teachers? Taxpayers? The federal government?” Hall said. Hall was named head of private equity recently after former alternatives chief Steve LeBlanc announced he was leaving the system earlier this year. He has worked on Texas Teachers’ portfolio for four years, joining the system in 2008.”
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