Full-Fee LPs Subsidize Large Institutional Investors Taking Free Co-Investments
Charles Van Vleet · Charles Van Vleet – Thinking Differently with Pensions at Textron (Capital Allocators, EP. 283) · Nov 28, 2022 · at 27:36
Charles Van Vleet, CIO at Textron, critiques the structural conflict between small-to-midsize pension funds and massive state pension plans in private equity.
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“Because of that, I'm not real thrilled when our GPs will raise five hundred million and then raise five hundred million worth of opportunity for direct co-invest. And my pushback on that is, well, so I'm really just subsidizing the other guy who's taking the co-invest slice. You know, he doesn't care so much about the Twenty million that invested. He's, he cares about the five hundred million worth of access and co-invest. So the firm has become his sourcing agent and I'm subsidizing the whole thing.”
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