"For fiduciaries overseeing other people's money, private equity's disparate treatment of investors, abusive industry practices and alarming lack of transparency should be deal-breakers. Nevertheless, pensions in recent years have dramatically increased their allocations to private equity, either because they don't understand the dangers lurking in the shadows or simply don't care as long as above-market returns are promised -- enhanced returns which will supposedly reduce severe pension underfunding."

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