News Digest: Pension funds seek to capitalize on SVB crash
March 27, 2023
The failure of two tech-linked US banks this month has resulted in public pension funds losing millions of dollars. However, market analysts believe that since these funds held small portions of their portfolios in Silicon Valley Bank and Signature Bank, the losses are also relatively small.
Equable, a privately funded not-for-profit that researches public pensions identified more than two dozen funds with direct holdings in one or both of the banks. The fund with the largest stake was CalPERS, which serves employees in California, which owned $67 million in SVB stock and $11 million in Signature Bank.
The fund, which is valued at $443 billion, is now looking to capitalize by moving to increase focus on direct investing in a revamped private equity program, says a report. It said the company set up an underwriting committee to consider direct investments and for acting as a strategic partner for balance sheet restructuring solutions and for long-term capital.