Isn’t it amazing that a guy like Bruce Rauner, Rahm’s best buddy and the guy who attacks teachers unions and teacher pensions as if it is a blood sport, has made lots of bucks off of teacher pensions?
Mr. Rauner, a millionaire who retired as GTCR chairman last year in anticipation of a run for the state’s top office, led a firm with more than $10 billion under management largely from public pensions nationwide, including the biggest in Illinois. After earning millions of dollars from this work, Mr. Rauner says he wants to use his insights to overhaul the state’s pension system, the worst in the country in terms of meeting its obligations, with an estimated $100 billion shortfall.
Crain’s goes on:
GTCR has managed money for years for the Illinois Teachers’ Retirement System and the Illinois State Board of Investment, the largest and third-largest, respectively, in Illinois, as well as state and municipal pension plans from the San Francisco City and County Employees’ Retirement System to the Massachusetts Pension Reserves Investment Management Board. Its funds have delivered above-average returns for Illinois, according to Preqin Ltd., a London-based investment data provider.
For its work, GTCR takes a slice of returns it reaps from business sales, typically about 20 percent, and charges management fees, up to 1.5 percent. The Illinois State Board of Investment, for instance, reports it paid $280,000 in fees last year on $85 million it has in two GTCR funds.
Combined, TRS and the ISBI have committed $252 million with GTCR since 1993.
I think I’ll skip asking TRS Communications Director Dave Urbanek any questions about this. He clearly resents TRS members like me asking questions about the money we paid into the system for our retirement.
I mean, whose money is it, anyway?
Oh. Wait. It’s ours.
He’d probably ask me, “Where are you going with this?”