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PennSERS loses second private equity official this year

Institutional investors’ private equity programs are especially vulnerable to high team turnover, as the asset class requires “institutional memory” because of its long fund life.

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Pennsylvania State Employees’ Retirement System, one of the few large public systems trying to reduce exposure to private equity, recently lost another private equity investment officer.

Jason Burger, a private equity investment official, left the pension December 3, a spokesperson for the system confirmed for Buyouts.

It’s not clear why Burger left. A source said he left for another job, but Burger declined to comment about future plans.

Burger joined PA SERS in 2018, after working on private equity at Texas County & District Retirement System, and before that, for UPS Group Trust, also in private equity, from 2015 to 2018. Burger started his pension career in 2013 for New York State Teachers’ Retirement System, according to his LinkedIn profile.

Over the summer, David Felix, director of alternative investments, abruptly left the system, Buyouts previously reported. It’s not clear if Felix left for a new job. Felix worked at PennSERS since 2013.

Institutional investors’ private equity programs are especially vulnerable to high team turnover, as the asset class requires “institutional memory” because of its long fund life. Ideally, investment officials who build private equity portfolios stick around to see those investments mature over 10 years or more.

“The investment office has built a deeper bench to cover all asset classes including the private equity portfolio,” the PennSERS spokesperson said.

Burger’s departure comes as the system, a major backer of private equity funds, contemplates the future of its program. Earlier this year the system reduced its target to private equity to 12 percent from 14 percent to make room for a new allocation to public equities. As of the first quarter, the system’s private equity allocation stood at 12.3 percent, Buyouts previously reported. Private equity was valued at about $4.6 billion at the time.

Private equity has been a strong performer for the system. It generated a net 12.11 percent return for the second quarter, and a net 25.94 percent return for year-to-date as of June 30, the system reported.