Pension risk management

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Pension Risk Management for Private Equity Firms


HOT TOPIC:  Managing pension risk in companies held by private equity firms is increasingly a "Hot Topic" as they continue to focus more on managing their portfolio companies around the operational and HR issues.


The recent market meltdown has aggravated the volatility inherent in most pension plans--- especially when combined with the more stringent funding requirements of the Pension Protection Act----causing many plan sponsors to reevaluate their financial management policies.


As the pension strategy of portfolio companies rarely aligns with the objectives of Private Equity buyers, Private Equity firms have a stronger incentive than ever to adopt a liability aware perspective.