Private equity hasn’t shared enough revenue with workers, says Calstrs’ Christopher Ailman

The executives at private equity funds need to share their wealth with workers and communities they invest in, said Christopher Ailman, CIO of Calstrs, adding that private equity has not shared enough revenues.

“Private equity has not shared enough revenues,” Ailman, who had steered Calstrs – one of United States’ leading pension funds, which is also one of the world’s largest investors in the sector — to move into private equity, told the Financial Times. One of the country’s oldest pension funds, Calstrs oversees nearly $318 billion for 9,65,000 teachers and their families.

“It’s great they make money for our retirees — who are teachers and for other funds,” said the CIO, who currently holds $50 billion in the asset class. “But they need to also share the wealth with the workers of those companies and with the communities they invest in,” he added.

Notably, Ailman’s comments come against the backdrop of the private equity industry facing pressure from regulators and investors alike over its increasing influence on the US corporate sector.

Ailman, 65, had joined the California State Teachers’ Retirement System (CalSTRS) in the year 2000. Before that, he was associated with Washington’s state public pension fund. Although he is set to retire as the CIO of Calstrs on June 30, the award-winning investment strategist has assured he will remain in the capacity of an adviser until the end of the year to facilitate a smooth transition to his successor.