The Dutch pension for Zorg and Welzijn (PFZW) paid record performance bonuses to private equity managers in 2021. During 2021, the performance of private equity funds was exceptional, resulting in the significantly higher than usual pay-outs. PFZW set aside €1.26 billion for the bonuses, which is four times higher than the previous year.

Of the €1.26 billion set aside for private equity, nearly half has been paid out, with the remainder being reserved for when and if the firms can cash in on any profits from the investments. Hence, the final bonuses could be higher or lower.

Such significant bonuses are a pain point for both politicians and those who participate in the pension funds.

“We are very happy with the high returns that private equity has been delivering for many years, yet we pay this kind of asset management fee with a pain in our stomach,’ says a spokesperson for the pension fund.