How Public Pension Funds Fuel Private Equity

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Sep 11, 2026 · 13m · transcript

We explore the structural shift where public pension funds, driven by low interest rates and liability gaps, have become the silent backbone of private equity. Using CalPERS as a primary case study, we examine how pension mandates to hit eight percent net returns push capital into illiquid, high-fee alternative investments. We discuss the risks of this liquidity mismatch, the role of general partners in capturing value, and what happens when the easy money runs out. This is not just about retirement savings; it is about how public balance sheets are reshaping the entire corporate landscape…