Julie Shu and Cassandra Robertson of The Century Foundation wrote a comment on how pension funds can support growth and build an economy that supports workers:

Private equity firms have increasingly come under fire for actions that are making life more difficult and unaffordable, such as driving up the prices of single-family homes, closing hospitals that aren’t profitable enough, and laying off workers at companies they have purchased. New efforts by public pension funds are hoping to counter these bad practices and instead promote investments that benefit communities and workers. 

Public pension funds have the ability to drive investment in our economy to promote shared prosperity while seeking competitive risk-adjusted returns. These funds represent over $6 trillion in capital, and are the collective retirement savings of millions of teachers, firefighters, nurses, sanitation workers, and other public employees who have earned these benefits through years of service. These funds are invested across the economy, in private equity, in real estate, and in public markets. The largest asset managers in the world rely on pension fund dollars to help fill their portfolios. 

Recognizing this power, public pension funds are increasingly instituting policies to ensure that their money works for the people who contributed it, not against them. In line with the funds’ fiduciary duty to seek diversified, consistent, risk-adjusted returns for their participants, funds are thinking deeply about what prompts growth and prosperity. Some states are using their pension funds to invest in affordable housing or infrastructure, leveraging their capital to build the future workers hope to see. But one of the most powerful innovations is a new movement of public pension funds adopting workforce principles and requiring asset managers abide by them across their portfolio. Such principles—consistent with the fiduciary duty that fund managers have—promote investments that simultaneously maximize returns and worker well-being.

Private financial markets have grown rapidly over the past two decades and play an increasingly prominent role in the U.S. economy—and in the portfolios of institutional investors, including workers’ pension funds. Today, the private equity industry manages $11 trillion in assets, and companies owned by private equity employ about one out of every thirteen U.S. workers, or 11.7 million workers nationwide. Over half of the capital that private equity firms manage comes from public pension funds and other institutional investors. These large funds, such as the California and New York City public employee retirement system funds, invest the earnings of hard-working people who spent their careers in public service. The size of these pension funds is only expected to increase in the future. By requiring asset managers to adopt workforce principles across their portfolio to ensure that their workers are treated fairly and their rights are protected as a condition of receiving investments, pension funds are not only determining how their workers’ retirement savings are invested, but also ensuring that those investments create good jobs for other workers. 

Why does this matter?

Private equity firms are focused on the short-term profits from any given deal. Public pension funds also seek competitive, risk-adjusted returns—but in addition to that, as universal owners, they are also incentivized to seek sustainable, long-term economic growth as aligned with their fiduciary duty. 

The history of the private equity model has shown that while it can provide a good rate of return to investors, it also can have significant negative externalities for workers, communities, and the economy. When public companies are taken private, this can result in significant job losses and negatively impact whole communities. For example, when Toys R Us was bought by two private equity companies and eventually forced into bankruptcy in 2018, over 30,000 employees were laid off. The private equity firm Cerberus loaded up Steward Health Care with debt, running it into bankruptcy in 2024 and closing many of its hospitals. While this left many without access to care, the private equity company made over $800 million in profit. Some deals strip companies for parts, selling the land out from underneath a company’s buildings and leasing it back at exorbitant rates, as with Red Lobster. 

Purchase of a company by a private equity firm can also lead to lower employment, lower wages, and lower productivity. Overall, this can lead to greater inequality, which will subsequently impact other parts of the portfolio through reduced economic growth, and—if the acquisition were funded with public pension fund dollars—may not benefit the very people funding the investments. 

The push to make things better.

In order to promote not only better jobs for workers but also a better economic future for the country as a whole, public pension funds are increasingly requiring better treatment of workers across their investment portfolio. As long-term, fully diversified investors with commitments decades out, public pension funds recognize that a high-road approach toward workers can be an important tool to facilitate long-term positive returns (aligned with their fiduciary duty) that depend on overall GDP growth.  

This is where the new principles being adopted by public pension funds for their private equity investments come in. These principles include industry standard wages, freedom of association, and other measures that support the workforce. The University Pension Plan of Ontario has identified inequality as a systemic risk, as they believe inequality can lead to instability and lower overall investment returns. Labor leaders, such as Sean McGarvey, Randi Weingarten, Gwen Mills, and Rebecca Pringle, have made a clear case that supporting good jobs encourages healthy returns and is therefore an advantageous strategy for investors. This perspective is supported by a large body of research.

First, research from MIT demonstrates that good jobs lead to better productivity and more competitive companies. Higher compensation can reduce turnover and increase productivity across industries, including airports, manufacturing, warehouses, and retail. Turnover can cost an employer between 5 percent and 95 percent of an employee’s annual salary, depending on the industry. Greater productivity is essential for economic growth, a key tool for pursuing higher returns. 

Second, strong safety standards are crucial to not only worker health but also investment return. Injuries and unsafe practices can be expensive and lead to reputational risk. Research from California shows that putting worker safety first reduces employee injuries and costs, while buttressing the bottom line. 

Third, pension funds often push for union neutrality since unionization can lead to better trained workers with lower turnover and higher productivity. Capital and infrastructure projects that use union labor have higher productivity and cost less, in part because of the higher skill level of the workforce. 

Finally, adherence to high-road labor practices can lead to better performance in public markets as well. Just Capital, a research organization, has found that the companies they rank as having positive worker practices outperformed the market overall. This is confirmed by evidence that investments in compensation lead to long-term higher market returns. Implementing strong workforce principles can therefore advance productivity and profitability for both private and public companies. 

For fully diversified, long-term investors such as public pension funds who touch all parts of the economy, higher productivity and lower inequality is a strong strategy to promote growth and protect future returns. Treating workers with dignity can help to achieve these goals.

Looking ahead.

Worker power and worker rights are not at odds with competitive risk-adjusted returns. They are self-reinforcing. As unions and pension trustees continue to advocate for workers in investment decisions, they are building a more sustainable economic foundation that benefits everyone. The choice is clear: pension funds can either perpetuate a business model that ultimately undermines their own portfolios, or they can champion an approach that recognizes workers as valuable assets whose wellbeing directly correlates with sustainable, broad-based economic growth. The latter path not only honors the legacy of the working people whose careers built these pension funds, but also helps ensure those funds remain robust for future generations of retirees. 

This comment caught my attention for many reasons.

First, as public pension funds become larger and manage more assets across public and private markets, what role do they play, if any, in growing the economy and supporting workers?

Last month, I discussed how OMERS' economic contribution to Ontario grew to $15.3 billion, delivering stability and social value for members and communities: 

A growing economic impact

The new report shows that OMERS activities contributed to:

• $15.3 billion in provincial GDP (an 11% increase from 2023 and a 28% increase from 2020).

• 135,200 jobs across Ontario, including almost 40,000 jobs in rural communities.

• Nearly $4.2 billion in combined federal and provincial tax revenue.

• In total, more than 832,000 Ontarians - the equivalent of 1 in 11 households - benefited from OMERS activities in 2025.

Impact across all regions of Ontario

OMERS contribution to economic activity is felt across every region:

• Greater Toronto Area: 71,500 jobs; $7.9B GDP contribution

• Southwestern Ontario: 25,800 jobs; $2.7B GDP

• Eastern Ontario: 16,800 jobs; $1.7B GDP

• Central Ontario: 14,900 jobs; $2.4B GDP

• Northern Ontario: 6,200 jobs; $0.6B GDP

And that's just OMERS. Imagine if we did a detailed study on the economic impact of all of the Maple 8 funds and how they contribute to the Canadian economy (if I remember correctly, it was done a few years ago).

Now, on to my second point, what is the economic impact large global pension funds, sovereign wealth funds and other large institutional investors have on the global economy?

It's huge, they provide stable, long-term capital and help public and private companies grow.

When these companies grow, they hire more people and the multiplier effect of all this activity on the global economy isn't trivial.

Third, what role can global pension funds and institutional investors play in public policy?

Here is the tricky part. In the US where public pensions report to state treasurers who have their own political agenda, there is more political interference in the decision-making process.

In Canada, our large public pension funds operate at arm's length from the government, they have independent boards who focus on the best interests of members.

There is no political interference but governments still maintain power (by nominating board members) and in extraordinary circumstances, can step in if they deem it necessary (think of the purge at AIMCo).

Having said this, all of Canada's large public pension funds take responsible investing very seriously and report to their members on activities related to it.

But responsible investing isn't the primary objective; rather it's a complement to investment activities to garner better risk-adjusted returns over the long run.

There are a lot of things I agree with the comment above and some things, I do not agree with.

They paint a mostly negative view of private equity, choosing Cerberus as an example, but that old way of managing assets is dead or on its way out.

If you look at what Pete Stavros at KKR is doing, they're literally forging a new path to capitalism, sharing profits with workers if they deliver and help add value to companies they acquire.

No doubt, private equity funds have a shorter investment horizon than pension funds but the smart ones extend if they can add value to their companies and reap bigger rewards.

Do pension funds have influence on private equity funds?

Yes, they do, but I wouldn't over-emphasize it. 

KKR didn't implement its new model because public pension funds forced it to. They realized it makes great economic sense, aligning the interests of workers with their interest in adding value to companies they acquire.

But pension funds can make sure that private equity funds align with their interests as well.

For example, University Pension Plan of Ontario (UPP) states diversity is a systemic risk and they make sure all the public and private companies they invest with know their views. 

So, at some level, global pension funds and other large institutional allocators have an influence, especially with smaller private equity funds.

Lastly, a big topic these days is the impact of AI on work. I tend to agree with a Harvard study that says AI doesn't reduce work, it intensifies it. 

But pension funds investing with top venture capital funds are more privy to information on how AI will shape our economy, good and bad.

Do they have a role in supporting work, or will they invest in funds that destroy work? 

Probably a mix of both if I am truthful. 

The key thing I want to make clear here is that as pension funds get bigger and command ever more assets, policymakers will lean on them to help support the economy and if their objectives coincide, they will answer the call.

Those are just some of my reflections on pensions and public policy and how they can contribute to economic growth and and build an economy that supports workers.

Below, in this episode of Blue Skies, Erin O'Toole is joined by Jim Leech, former CEO of the Ontario Teachers' Pension Plan and a well-respected voice on business issues, to discuss the current debate about whether governments should mandate public pension plans like the CPP to invest more in Canada. 

They also explore the development of the 'Canadian Model' for pension governance and why it has gained international acclaim. They also engage in a wider discussion of issues related to Canadian economic competitiveness and financial security for pensioners.

This discussion took place a year ago but it's well worth listening to it because Erin and Jim cover a lot.

Key takeaways:

• The persistent gender wage gap widened slightly in 2025; women were paid 18.6% less than men on average after controlling for race and ethnicity, education, age, marital status, and state.
• Women are paid less than men across all education levels. Women with a graduate degree earn less, on average, than men with only a college degree.

• The gender pay gap worsened following a year of Trump administration attacks on workers, including cuts to the federal workforce; attacks on diversity, equity, and inclusion efforts; ordering mass deportations; and undermining child care and home care providers.
• States can narrow the gender pay gap with policies that guarantee access to paid family and medical leave, mandate pay transparency, raise the minimum wage, and make it easier for workers to form unions.

March 26 is Equal Pay Day, a reminder that there is still a significant pay gap between men and women in our country. The date represents how far into 2026 women would have to work on top of the hours they worked in 2025 simply to match what men were paid in 2025.

On an hourly basis, women were paid 18.6% less on average than men in 2025, after controlling for race and ethnicity, education, age, marital status, and state. After narrowing to a series low of 18.0% in 2024—likely driven by a strong labor market recovery from the COVID-19 recession that lifted wages more at the lower end of the overall wage distribution—the gender wage gap widened slightly in 2025. Though far from a total reversal of the last few years’ progress, the slight worsening in 2025 reflects the slowing of low-end wage growth and the economic consequences of Trump’s first year back in office.

Women are paid less than men due to discrimination associated with occupational segregation, devaluation of women’s work, and societal norms, much of which takes root well before women enter the labor market. The wage gap is smallest among lower-wage workers partly because the minimum wage creates a wage floor. At the 10th percentile, women are paid $1.39 (or 9.1%) less an hour than men, while the wage gap at the middle is $4.12 an hour (or 14.7%). Women at the 90th percentile of their wage distribution are paid $14.05 (or 19.6%) less an hour than men at the 90th percentile of the wage distribution.

Women are paid less than men at every education level

Although women have seen gains in educational attainment over the last five decades, they still face a significant wage gap. Among workers, women slightly outnumber men in the college-educated labor force and are significantly more likely to obtain a graduate degree than men. Even so, women are paid less than men at every education level, as shown in Figure A.

Figure A

Among workers who have only a high school diploma, women are paid 21.5% less than men. Among workers who have a college degree, women are paid 23.8% less than men. That gap of $12.07 per hour translates to roughly $25,100 lower annual earnings for a full-time worker. Women with an advanced degree also experience a significant hourly wage gap of $17.70 in 2025, amounting to over $36,800 annually.

What the data makes very clear is that women cannot educate themselves out of the gender wage gap. Systemic inequities are so persistent that women with advanced degrees are paid less per hour, on average, than men with only college degrees. Men with a college degree only are paid $50.61 per hour on average compared with $49.67 for women with an advanced degree.

Black and Hispanic women experience the largest wage gaps

For Black and Hispanic women, the pay gaps relative to white men are even larger due to compounded discrimination and occupational segregation based on both gender and race/ethnicity. In Figure B, we compare middle wages—or the 50th percentile of each group’s wage distribution—for Asian American/Pacific Islander (AAPI), Black, Hispanic, and white women with that of white men.1

White and AAPI women are paid 81.9% and 93.3%, respectively, of the amount non-Hispanic white men are paid. Black women are paid only 68.3% of white men’s wages at the middle, down from 69.6% in 2024. This is a gap of $9.87 on an hourly basis, which translates to roughly $20,500 lower annual earnings for a full-time worker. For Hispanic women, the gap is even larger: Hispanic women are paid only 64.5% of white men’s wages, an hourly wage gap of $11.06. For a full-time worker, that gap is over $23,000 a year. This disparity has also risen slightly compared with last year.

Figure B

Even when controlling for age, education, marital status, and state of residence, Black and Hispanic women are paid 25.3% and 27.4% less than their white male counterparts, respectively. In other words, very little of the observed difference in pay is explained by differences in education, experience, or regional economic conditions.

Trump administration policies exacerbate lower pay and make it harder to enforce antidiscrimination laws

Over the last year, the Trump administration has repeatedly taken actions that harm women workers, including:

• slashing the federal workforce;
• weaponizing agencies meant to defend workers and combat discrimination by turning them into defenders of discriminatory practices;
• eliminating enforcement of race- and gender-based equal employment practices for federal contractors;
• ordering mass deportations;
• undermining child care providers and vital state funds;
• limiting access to funding for higher education;
• rolling back protections for home care workers; and
• normalizing harassment and retaliation in the workplace.

Black and Hispanic women have endured and will continue to suffer the consequences of these attacks more intensely than many of their white, non-Hispanic male colleagues. Trump’s reckless decimation of the federal workforce, for instance, has disproportionately affected Black women, for whom government jobs have historically been a powerful tool for economic mobility and security. In 2025, Black women’s employment rate fell by 1.4 percentage points to 55.7%. This is one of the sharpest one-year declines in the last 25 years and is a much more dramatic drop than that of other women or Black men. College-educated Black women experienced the largest drop in employment, likely because nearly half of Black federal government workers have a bachelor’s degree or higher. This drop in well-paid, traditionally stable jobs will almost certainly lead to increased economic insecurity. Additionally, mass deportations will likely reduce jobs for both immigrant and U.S.-born women, particularly in the care sector, disproportionately impacting Hispanic women.

The Trump administration has also stifled the government’s ability to protect workers and penalize discriminatory employers. The restriction of the use of words like “gender,” “race,” “equity,” and “discrimination,” and attempts to weaponize the Equal Employment Opportunity Commission (EEOC) against women and workers of color will harm all workers, while weakening our ability to track pay equity and enforce nondiscrimination laws. Staffing levels at the EEOC have fallen steadily over the last four decades, but recent funding cuts and shifting priorities will exacerbate its already reduced capacity for enforcement. There have also been ongoing threats to the availability and continued collection of key data throughout federal agencies. If agencies that collect data on wages and incomes by demographic characteristics pull back, it would be a disaster for anyone—policymakers, researchers, employers, or workers—who wants basic facts about how well the economy is performing for different workers and different sectors.

Despite federal threats, states can help close the gender pay gap

Closing pay gaps by gender and by race and ethnicity will require policy solutions on multiple fronts. Although attacks on gender and racial equity continue at the federal level, state lawmakers can and must take steps to address the gender wage gap. Potential solutions include enacting pay transparency laws, mandating Paid Family and Medical Leave (PFML), raising the minimum wage, funding universal child care, and removing anti-worker, so-called “right-to-work” (RTW) statutes. Figure C highlights the states that have already passed some of these critical pieces of legislation, while underscoring the need for strong federal standards to cover the millions of workers who live outside of these states.

Figure C

Only 14 states have mandatory, comprehensive PFML policies, even though they provide essential benefits that help workers maintain their livelihoods while taking care of themselves and their families. Studies show that access to PFML improves outcomes for parents and children, workforce participation, and job retention, and that this a beneficial policy for both employees and employers. Access to paid leave is also shown to bridge racial gaps in care and pay.

Pay transparency laws are another useful tool that prevents employers from offering unequal pay by requiring them to include wage information in job postings. While there is some variation in laws, all include some requirement that employers provide salary information in job postings, but employers in Connecticut, Maryland, and Rhode Island only must furnish that information if requested by applicants. This wage transparency has the potential to reduce gender-based discrimination by arming jobseekers with more information and limiting employers’ ability to pay different amounts to similarly qualified candidates. A Colorado pay transparency law, for example, reduced gender wage gaps for workers who changed jobs by as much as 8.9%.

Policymakers effectively stopped protecting workers’ rights to form unions and bargain collectively starting in the 1980s, resulting in less leverage for workers and increased income inequality. Weak labor law allows employers to retaliate against union organizing and undermine workers’ right to collectively bargain. Union contracts can help narrow gender and racial wage gaps by providing clear wages for a given level of experience and education, reducing employers’ ability to discriminate in wage setting. Unfortunately, 26 states have RTW laws that make it even harder for unions to effectively organize and bargain for better contracts. States with these laws not only have lower unionization rates but also have wider gender wage gaps. By making it easier for workers to form unions, policymakers can help reduce these pay gaps.

The minimum wage keeps wages from falling below a mandated floor. While the real value of the federal minimum wage has been allowed to decline, down nearly $5 an hour since its peak in 1968, states have stepped in and increased their minimum wage. As of January 2026, 30 states and D.C. have minimum wages higher than the federal minimum, covering more than half of U.S. workers. Since women are disproportionately found in the low-wage workforce, these laws are key to increasing their economic security and narrowing wage gaps at the lower end of the wage distribution.

Although there is no single policy that will close the wage gap, each of these solutions will narrow it and improve conditions for workers across the country. In his first year back in office, Trump has rolled back critical labor standards, decimated federal unions, and laid off tens of thousands of federal workers. Now, more than ever, it is critical that states step up to protect workers under attack, prevent the gender wage gap from expanding, and build an equitable economy that works for all. 

1. Race/ethnicity categories are mutually exclusive in this analysis. Here we denote white to mean white non-Hispanic, Black is Black non-Hispanic, Asian American/Pacific Islander (AAPI) are AAPI non-Hispanic, and Hispanic refers to Hispanic of any race.

 Sarah Rundell of Top1000Funds reports on how CalSTRS' One Fund approach navigates uncertainty:

Scott Chan is shocked the market hasn’t reacted more to the crisis emulating from the US-Israel-Iran conflict. But the CalSTRS CIO is confident its one fund approach allows it to position dynamically and ensure diversification no matter what is presented.

So warned CalSTRS’ CIO Scott Chan speaking at the $392 billion pension fund’s March investment committee meeting, explaining to trustees that many unknowns lie below that will impact global trade flows, the equity bull market, and in the shape of currents like AI and America’s burgeoning housing crisis, young people’s ability to tap into the American dream.

The impact of the conflict in Iran is also gathering force below the surface of an apparently benign market.

Chan said he “was shocked” that the market hasn’t reacted more to the crisis – notwithstanding the sharp rise in oil prices. He attributed the absence of a market reaction to enduring uncertainty of how events will play out.

“The market is pricing efficiently what it knows,” he said, adding: “Right now with the uncertainty, I don’t care who you talk to, if they tell you they know what’s going to happen, you should probably walk the other way.”

In the first few weeks of the conflict, CalSTRS strategy has involved rebalancing from its slight overweight to growth assets, ensuring “ample” liquidity and staying mindful of emerging opportunities. For example, the energy crisis potentially opens the door to investment opportunities in markets that are net importers of oil through the Strait of Hormuz like India, Japan, China and South Korea, where sharp falls in the KOSPI represented a potential buying opportunity.

Away from geopolitics, Chan noted other currents building like trends in fiscal policy intervention and the formation of new trade alliances that are rewriting supply chains and redirecting how capital flows. As governments grapple to manage huge deficits, he flagged the risk and opportunity in interest rate volatility and the importance of diversification, discipline and staying dynamic.

Reflecting on market impacts closer to home, Stephen McCourt, managing principle and co-CEO, Meketa, argued that new Fed chair Keven Warsh won’t necessarily push for lower rates. “If Trump’s interest is to get the Fed to lower interest rates irrespective of data, Warsh is an unusual selection.” Coupled with inflationary concerns, he said it explains why markets have priced in fewer rate cuts for 2026.

Chan said the CalSTRS’ One Fund approach, its version of a total portfolio approach, will support the investor’s demand to dynamically allocate and diversify to maximise returns in the current complex environment. It allows the team to invest tactically to position the portfolio to benefit from volatility and has required putting in place cultural and organisational structures, notably a total fund team that maps a common language of risk, and how portfolio risk is shifting.

Recent strategies include increasing capital to asset backed private credit that is less cyclical, more stable and adds diversification with a similar return to other forms of private credit. Elsewhere, strategies include rebalancing the portfolio and pursuing opportunities when the markets are discounted.

CalSTRS generated an unofficial 13 per cent return over the last calendar year, well above the 7 per cent actuarial goal, with the value of the portfolio increasing by $42.5 billion, net of fees, contributions and benefits.

The global equity portfolio rose 22.8 per cent, led by strong non-U.S. equity market performance and interest rates fell, driving strong performance in fixed income markets.

The $58.8 billion private equity portfolio yielded a positive return over the past six months and outperformed the Custom State Street Index, which is used to evaluate performance against other institutional investors.  Staff have increased co-investments, which now represent 24.6 per cent of the private equity allocation and continue to work toward the goal of 33 per cent co-investments. 

Clearly, CalSTRS is doing well, and here CIO Scott Chan explains how their One fund approach dynamically allocates and diversifies to maximize returns in the current complex environment. 

[...] It allows the team to invest tactically to position the portfolio to benefit from volatility and has required putting in place cultural and organisational structures, notably a total fund team that maps a common language of risk, and how portfolio risk is shifting.

Recent strategies include increasing capital to asset backed private credit that is less cyclical, more stable and adds diversification with a similar return to other forms of private credit. Elsewhere, strategies include rebalancing the portfolio and pursuing opportunities when the markets are discounted.

Whatever they are doing, it's working, CalSTRS delivered a gain of 13% over the last calendar year, outperforming its large Canadian peers (but underperforming Norway's giant sovereign wealth fund which gained 15.1% in 2025).

Again, it's all about asset allocation and CalSTRS is more exposed to liquid public markets (similar to Norway's Fund) but also has a sizable private equity/ private markets portfolio which seems to be performing relatively well. 

Again, outperfoming its required rate of return (7%) by 600 basis points last calendar year is nothing to sneeze at, but keep in mind, their fiscal year ends at June 30 , so these are not official returns.

No doubt, their One Fund approach is proving very useful in this environment and they managed to diversify globally properly to take advantage of opportunities.

So, kudos to CalSTRS, Scott Chan, and his investment and risk teams, they're executing nicely in a difficult environment.

Moreover, for the 11th time, CalSTRS has been named one of the Best Places to Work in Money Management by Pensions & Investments magazine:

This 14th annual survey and recognition program is dedicated to identifying and honoring the top employers in the money management industry.

“As their employees attest, the companies named to this year’s Best Places to Work list demonstrate a commitment to building and maintaining a strong workplace culture,’’ Pensions & Investments Editor-in-Chief Julie Tatge said. “In doing so, they’re helping their employees, clients and businesses succeed.’’ 

The Best Places to Work award winners are chosen based on workplace policies, practices, philosophy, systems and demographics, as well as an employee survey.

“We’re honored to receive this award, which is a testament to our team’s commitment to protect the more than 1 million California public educators and beneficiaries who rely on us to help secure their future,” CalSTRS Chief Executive Officer Cassandra Lichnock said. “The award affirms that our greatest asset is our innovative, inclusive and passionate workforce.”

"This is an acknowledgement of the amazing teamwork and passion of our investments team and our colleagues across the organization,” CalSTRS Chief Investment Officer Scott Chan said. “I'm so grateful to the team for embracing our organization's mission and continuing to strive for innovation and collaboration.”

The 2025 Best Places to Work in Money Management award winners are posted online.

Good for them, this is a well-deserved acknowledgement.

Below, in this episode of How I Invest, a conversation with Scott Chan, Chief Investment Officer of CalSTRS, to explore how he oversees a staggering $350 billion in assets (March 2025). 

Scott shares insights on CalSTRS’ collaborative investment model, their approach to private and public markets, and why they aim to be the "global partner of choice." He also discusses the importance of structural alpha, liquidity management, and identifying long-term supply-demand imbalances.

Great discussion, listen carefully to his insights and approach. 

Key takeaways:

• Ballot initiatives have enabled voters to advance worker-centered policies—like higher minimum wages—in states with hostile legislatures, particularly in the South.
• A coordinated, right-wing legislative attack on ballot initiative processes is attempting to reverse ballot initiative wins, scare advocates out of using the ballot process, and make it harder to get future measures on the ballot that improve standards for workers.
• Despite these barriers, advocates and voters are fighting back to protect pro-worker ballot access and advance new progressive ballot measures.

In recent years, state ballot initiatives have served as powerful tools to advance economic opportunity for working families. Voters directly have raised the minimum wage, secured paid sick leave, protected abortion access, enacted bail reform, expanded Medicaid, and increased funding for public education—all popular progressive economic policies that some state legislatures have failed to enact. However, some conservative state legislatures have responded by overturning or limiting recent wins. And in the few Southern states where voters can access ballot measures—Arkansas, Florida, and Oklahoma—conservative legislators are waging war against the ballot initiative process itself, attempting to obstruct the will of voters and make it permanently more difficult for the public to directly decide on policy choices.

Why ballot initiatives are important for advancing economic opportunity

Ballot initiatives are a form of direct democracy in which voters have the power to decide on a proposed new law or constitutional amendment. Currently, 26 states and the District of Columbia offer voters access to ballot measures in some form, as do many more localities.

While more than half of the country has access to some form of direct democracy, ballot access is heavily concentrated in Western and Northern states. Only three states in the Deep South—Arkansas, Florida, and Oklahoma—effectively have ballot initiative processes. Attacks on the ballot process are intensifying in each of these states.

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Ballot initiatives are more important than ever for advancing worker-centered policies that both Congress and state legislatures have failed to enact despite clear voter support. For example, Republican lawmakers have repeatedly blocked legislative proposals to increase the minimum wage (federally and in many states) despite the popularity of increasing the minimum wage and the positive impacts it has on workers and families. In the absence of federal action, 30 states, the District of Columbia, and almost 70 localities have adopted minimum wages above the federal minimum of $7.25 per hour. Of these states, 43% (13 states) used ballot measures to secure the increase. An additional three states used direct democracy to increase minimum wages that already exceeded the federal floor.

Ballot measures have been especially critical to achieving minimum wage increases in Southern states like Arkansas and Florida. Only four other states in the South—Delaware, Maryland, Virginia, and West Virginia—have increased their minimum wages via legislation likely due to higher minimum wages in neighboring states or Democratic legislative majorities.

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Paid leave laws have remained similarly scarce across the South. Of the 18 states with some form of statewide paid sick leave, only one—Maryland—is in the South. Attempts to expand paid leave access in Southern states have so far been limited to narrow state legislation covering only some public employees, or local efforts threatened with state preemption, demonstrating the need for ballot initiatives.  

Right-wing attempts to weaken direct democracy in the South

In response to the success of progressive ballot measures, right-wing lawmakers have launched attacks on direct democracy, particularly in the South.  

Opponents of ballot access have especially targeted the signature process to delay or block measures from reaching the ballot. This strategy arose in Mississippi via a court challenge to a 2020 ballot initiative allowing the use of medical marijuana, which 74% of voters approved. As advocates including the Mississippi NAACP were building support for new ballot measures to expand Medicaid, the courts struck down the ballot process. Even though Mississippi’s Constitution guarantees voters access to ballot initiatives, the state Supreme Court ruled that no ballot initiative could be valid because of outdated constitutional language establishing the signature rules. (The old rules do not account for the lower number of congressional districts in Mississippi after redistricting, making it impossible to reach the signature threshold to put a measure on the ballot.)  

Following the Mississippi blueprint, direct democracy opponents in other Southern states have begun to challenge the signature process. After Arkansas voters passed minimum wage increases through ballot measures, the Arkansas legislature passed new state laws that could empower the state attorney general to invalidate a request for signatures because of the title of the measure. If and when the signature process begins, a host of laws make it much more difficult for canvassers to collect signatures. Canvassers must now confirm the voter reads the ballot title, inform voters that petition fraud is a crime, check voter identification, and file an affidavit stating they have complied with all laws. Scare tactics directed at both petition canvassers and signers make it harder to collect signatures out of fear that exercising their constitutional rights may lead to imprisonment.

Following minimum wage increases that passed via ballot measures, the Florida legislature followed a similar strategy of restricting the signature process for citizen-led constitutional amendments. Their legislation excludes people with felonies, people without citizenship, and non-Florida residents from being canvassers. It also requires canvassers to register with the state or face a third-degree felony charge which could be punishable by up to five years in prison. Once the signatures are collected, the law also requires the sponsor to deliver the petitions within 10 days after a voter signs, as opposed to once all signatures are collected. These restrictions deeply limit the number of people who can collect signatures and add burdensome labor to the petition sponsor by requiring frequent trips to deliver the petitions. In 2025, advocates met the signature threshold to put recreational cannabis on the ballot, but the new laws invalidated over 70,000 signatures and prevented the measure from reaching voters.  

Finally, conservative lawmakers in Oklahoma have launched attacks on the ballot process. Oklahoma organizers have already secured the signatures for a 2026 ballot measure to increase the minimum wage. In response, lawmakers attacked the signature process, restricting the share of eligible voters who can sign initiative petitions per county and consequently weakening the influence of voters in the most populous counties like Oklahoma and Tulsa counties. The Oklahoma Policy Institute explains that this new requirement would “exclude 2.2 million registered voters (or 94.4% of registered voters) from signing a petition for statutory amendments.” The restriction also has racial implications with Tulsa County home to 23% of Black Oklahomans and Oklahoma County home to 41% of Black Oklahomans. Compounding the new restrictions, the law also gives the secretary of state the authority to determine the legality of a proposal. The new law also requires that paid petitioners disclose their employer to the secretary of state and prohibits paying canvassers with out-of-state funding or based on the amount of signatures they collect, among other tactics to invoke fear.

Overall, these new petition processes can make signature collection more costly due to administrative barriers that only allow the most well-funded campaigns to have any chance of making the ballot. Consequently, the process now lends itself to causes backed by corporate interests or wealthy supporters which may not reflect the needs of average voters, contradicting the goals of ballot access policies intended to democratize decision-making.

Despite attacks, voters are still fighting to launch ballot initiative campaigns and protect direct democracy

Despite growing attacks on the ballot process, organizing across the country—and in the South—persists. In June 2026, Oklahoma State Question 832 will be on the ballot, proposing to gradually increase the minimum wage to $15 per hour by 2029. In Florida, ballot measures proposing various constitutional amendments are moving forward to expand Medicaid, legalize recreational use of marijuana, and codify the right to clean and healthy water.

Advocates are also organizing to protect the constitutional right to ballot access itself. Arkansas Public Policy Panel and the Protect AR Rights coalition continue to fight back and win against new restrictions on ballot measures, filing lawsuits and proposing a new ballot question that would make ballot access a “fundamental right.” Their new ballot question was approved in July 2025, clearing one of the last barriers for signature collection. In Oklahoma, advocates have filed two lawsuits opposing new restrictions on ballot measures—especially the state’s ability to disrupt the signature collection process—and are awaiting a decision from the state’s Supreme Court.

Voters are similarly fighting back in states where legislators have rolled back successful pro-worker ballot measures. In response to the Nebraska legislature weakening a new paid sick leave law won via ballot measure, the Respect Nebraska Voters coalition is organizing for a new ballot measure to make it more difficult for the legislature to reverse the will of voters. Missouri legislators repealed parts of a successful ballot measure that established paid sick leave and attached a cost-of-living increase to the minimum wage. Voter outrage over the legislative betrayal has “kicked the hornet’s nest,” according to the bipartisan Respect Missouri Voters coalition, which recently submitted over 20 versions of new petitions to protect ballot initiatives. If implemented, these petitions would require an 80% legislative majority to overturn a successful ballot initiative law or constitutional amendment, prohibit barriers to signature collection, allow corrections to misleading ballot language, and add other ballot protections.

The essence of ballot access is the will of the people becoming law. Despite legislative efforts to obstruct direct democracy, Southern advocates and voters continue to push for the voice of everyday people to be heard and for policies that improve the lives of workers and their family members.

Mary McDougall and Alexandra Heal of the Financial Times report Canadian pension funds count cost of private equity slump:

A number of Canada’s biggest investors lost money on their private equity holdings last year as a downturn in the buyout sector continued to weigh on returns at some of the world’s largest retirement funds.

Ontario Teachers’ Pension Plan, which manages C$279bn ($206bn) of assets, and the C$145bn Ontario Municipal Employees Retirement System reported returns of minus 5.3 per cent and minus 2.5 per cent respectively for their private equity portfolios in 2025. For OTPP, it was the worst performance for this asset class since 2008 and for Omers since 2020.

La Caisse, Quebec’s C$517bn state pension fund, also reported weak private equity results. The group said its PE portfolio returned 2.3 per cent last year, well below the 12.6 per cent gain in its benchmark index, half of which is made up of listed stocks.

The Healthcare of Ontario Pension Plan, which published results this week alongside OTPP, reported private equity returns of 3.6 per cent in 2025. Its broader private markets portfolio returned 2.1 per cent, compared with 11.7 per cent for its listed holdings.

“Those are pretty dismal numbers, in private equity returns should be at 15 per cent minimum,” said one Canadian pension investor.

Rising interest rates since 2022 have weighed on private equity investment, with higher borrowing costs hitting dealmaking, returns and exit options.

Canada’s pension system is a major private equity investor with more than 20 per cent of public sector pension money allocated to the asset class, according to think-tank New Financial.

Dale Burgess, executive managing director of equities at OTPP, said private equity investors had been “navigating increased cost of capital, more constrained exit markets and greater operating complexity, creating a drag on returns”.

OTPP’s PE portfolio dropped in value from C$60.4bn to C$50.8bn last year, partly driven by full or partial sales of its investments in insurance brokerage BroadStreet Partners, Indian hospital chain Sahyadri Hospitals and Canadian retirement home provider Amica Senior Lifestyles.

To address the challenges, OTPP said it had made a “strategic shift” towards investing in areas where it believes it has a competitive edge, particularly the financial, services and technology sectors.

Omers said its C$25.6bn private equity portfolio had a net investment loss of C$700mn last year, with challenges in its industrial holdings and “weak performance across our earlier-stage growth and venture portfolios”. In recent months Omers has announced sales in its private equity portfolio including California-based care manager Paradigm and Toronto-based home care business CBI Health.

La Caisse blamed its disappointing private equity results on “slow earnings growth for portfolio companies and lower multiples in the technology and healthcare sectors”.

Overall returns across the pension companies were boosted by buoyant stock markets last year. OTPP’s total portfolio net return was 6.7 per cent, compared with 6 per cent for Omers and 9.3 per cent for La Caisse.

A quick note on the paltry returns in PE portfolios of some of Canada's Maple 8 funds (from the ones that reported thus far).

Last week, I spoke with OTPP's former CEO Jim Leech and asked him point-blank: "What's going on with OTPP's PE portfolio?"

Jim was in good spirits. He had just come back from skiing with his grandchildren in British Columbia and told me: "I don't know. All I can tell you is there is a lot more competition nowadays compared to when I was heading up Teachers' Private Capital." 

From my vantage point, covering all these pension plans/ funds, clearly 2025 wasn't a great year in Private Equity, and it wasn't a particularly great year in private markets.

Jim Leech is right, the game has changed significantly, there's way too much competition in private equity and that has spread to infrastructure, real estate and private credit.

Alternatives used to be a niche market, now there’s not much "nichiness" going on. Everyone is doing the same thing, the big giants keep raising bigger funds, and everyone is waiting for some serious financial crisis (aka dislocation in the markets) to put a lot of dry powder to work.

All I know is there is reason to be concerned, the Maple 8 funds shifted billions collectively into private markets over the last 20 years and that game seems stale these days.

Private Equity remains an important asset class but there are a lot of discussions taking place at these large shops.

If you underperform your benchmark over one year or even three years, it's a tough pill to swallow but you'll survive. 

If you underperform your benchmark in PE for 5 years, you're in deep trouble.

I'm not sure the situation is that dire, but it's definitely not the best of times for private markets, especially private equity and real estate.

Things might be slowly changing for the better -- I think they are -- but investors are anxious and worried.

Don't forget, in Canada, the whole "raison d'etre" of shifting into private markets was to manage more internally and add value without paying excessive fees.

If you can't deliver there, your whole "value add" proposition is in trouble.

Still, I don't want to take one or two bad years and extrapolate. I think there's a lot of generalizing going on in private equity/ private credit and I want to be very careful because the level of pessimism is a bit absurd in my opinion.

Private equity stocks are finally popping this week, too soon to tell whether they're turning the corner and headed back up for good but I'm paying attention.

All this to say, no doubt, private equity is in a slump but it's not dying and going away, that's just plain silly.

Does the industry need a good shakeout? You bet, it's already underway.

The dispersion of returns of top PE funds and top private credit funds with bottom ones has grown considerably over the last few years. 

Only the best will survive and that's the way it should be.  

Below, private equity returned fewer profits to investors for a fourth straight year as the industry sat on $3.8 trillion of unsold assets and struggled to raise money for new funds. Bloomberg's Allison McNeely reports (watch this clip here as I cannot embed it below).

Also, Orlando Bravo, founder and managing partner of Thoma Bravo, sits down with CNBC's Leslie Picker to discuss the impacts of artificial intelligence on the software sector.

Third, KKR Co-CEO, Scott Nuttall discusses the firm’s evolution into a diversified global investment platform and its dealmaking priorities with Bloomberg’s Dani Burger at Bloomberg Invest 2026 in New York.

Fourth, Ares Management Corporation Co-Founder & CEO, Michael Arougheti, discusses the private credit cycle, firm growth and the push to expand access beyond traditional institutional investors. He spoke with Bloomberg’s Dani Burger at Bloomberg Invest 2026 in New York.

Lastly, Apollo Global Management Inc. Chief Executive Officer Marc Rowan warned that a shakeout is coming for private credit firms as the industry faces a wave of concerns about rising defaults on loans to software companies.

For weeks, private credit executives have faced questions from investors over whether the $1.8 trillion industry can withstand sustained pressure if the software sector is upended by artificial intelligence in the coming years. Rowan’s comments came as business development companies have been hit by redemptions in recent weeks amid those broader investor concerns.

“This will be a shakeout — I don’t think it is going to be short term,” Rowan said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at Bloomberg Invest in New York. “It was foreseeable. It was predictable. And all you can do is have been a good underwriter, a good risk manager, have done a small number of stupid things.”

Monte Stewart of Canada CRE News reports Sagard, La Caisse are investing $490M in US-based IOS Properties:

Sagard Real Estate and La Caisse are launching a partnership to invest about $490 million in industrial outdoor-storage properties across major U.S. infill markets.

The partnership will pursue an industrial outdoor storage (IOS) strategy focused on key U.S. seaport markets where tenant demand is driven by proximity to major ports, population centres and trade infrastructure, said the companies. Priority markets include Southern California, the greater New York City and northern New Jersey region, the San Francisco Bay Area, Houston, and the Baltimore–Washington, D.C., metropolitan area.

The initiative brings together Sagard Real Estate (SRE), a U.S.-based real estate investment advisor and subsidiary of Montreal-based Sagard, and La Caisse. The partnership has an initial target gross asset value of CAD 490 million (US$360 million), with the option to scale through additional commitments.

“Our partnership with Sagard enables us to create a dedicated IOS platform that strengthens our real estate portfolio construction strategy through diversification into alternative sectors,” said Rana Ghorayeb, executive vice-president and head of real estate at La Caisse. “IOS is a critical supply chain asset class, benefiting from strong structural tailwinds: E-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.”

Sagard Real Estate President Mark Bigarel said the organizations worked closely to develop the strategy and target markets.

“This partnership brings together two like-minded organizations with aligned values and complementary strengths,” he said. “With La Caisse’s scale and long-term vision, combined with our operator-driven expertise, we are well-positioned to capture compelling opportunities in markets with strong fundamentals and durable demand drivers.”

The partnership has completed its first acquisition in the Meadowlands submarket serving the greater New York City area. The fully leased IOS property functions as an operational hub with strong connectivity to Manhattan and the Port of New York and New Jersey.

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives,” said Chad Messer, deputy CIO and portfolio manager at Sagard Real Estate. “With limited supply and high demand for well-located outdoor-storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.”

Sagard Real Estate said the partnership reflects both organizations’ commitment to building a scalable IOS platform across major U.S. port and population-centre markets, supported by long-term capital and durable demand fundamentals. 

Nolan Keegan of Hoodline also reports big-money yard grab hits Meadowlands as Sagard, La Caisse roll out $360M storage play:

Two heavyweight investors are teaming up to turn unglamorous pavement into a serious cash play. Sagard Real Estate and La Caisse have launched a new U.S. joint venture aimed at buying and operating industrial outdoor storage yards near major ports, with an initial gross asset target of CAD 490 million (about USD 360 million) and a first deal already inked in the Meadowlands submarket. The focus is on fenced, paved yard space used by contractors, trailer operators and equipment fleets at a time when infill land near key seaports is getting scarce. Executives are pitching the strategy as a way to lock in steady income from a niche corner of the logistics chain where well-located sites are hard to find.

In a company release, Sagard Real Estate said the partnership will target Southern California, the greater New York City and northern New Jersey region, the San Francisco Bay Area, Houston and Baltimore/Washington, D.C., and that the joint venture can expand further if additional capital is committed, according to Sagard Real Estate. La Caisse, the Quebec pension giant that reported net assets of CAD 517 billion as of Dec. 31, 2025, is serving as the strategic capital partner in the vehicle, per La Caisse.

Why yard space is suddenly a prime asset

Executives describe industrial outdoor storage, or IOS, as a structural investment play tied to the rise of e-commerce, global trade flows and nearshoring, all colliding with a finite supply of infill yard sites near big population centers and ports. "IOS is a critical supply chain asset class, benefiting from strong structural tailwinds - e‑commerce growth, global trade, and nearshoring," said Rana Ghorayeb, La Caisse’s head of real estate, in the companies' announcement via Sagard Real Estate. Sagard added that the partnership will lean heavily on regional sourcing and off-market access as the backbone of its value-creation strategy.

First Meadowlands deal plants the flag

The joint venture’s debut purchase is a fully leased IOS hub in the densely built-out Meadowlands submarket serving the greater New York City area. The partners say the property’s strong connectivity to Manhattan and the Port of New York and New Jersey underpins long-term structural demand for the site. Industry coverage has highlighted the CAD 490 million (roughly USD 360 million) initial target for the program and noted that the partners have not released detailed information about the specific location, according to Bisnow.

Local fallout: better yards, tougher land markets

Institutional buyers can upgrade yard operations with improvements like paving, lighting and security, but their arrival can also tighten local land markets and fuel community pushback over truck trips and shifting land uses. That tension is already apparent in Southern California, where investors have been converting underused parcels and flex properties into IOS yards, according to goes all in on industrial storage land grab coverage and a MacLeod & Co. market report that points to tight supply and rising per-acre pricing.

What this means for other port cities

Because the joint venture includes an option to scale, industry watchers expect more acquisitions in major seaport markets and even fiercer competition for infill industrial land, according to observers cited by Bisnow. For the full details on the strategy and initial rollout, see the companies’ press announcement and the original distribution via WebWire and the firms’ releases. 

Last week, La Caisse issued a press release stating it is launching an industrial outdoor storage joint venture strategy with Sagard Real Estate:

Sagard Real Estate (SRE), a leading U.S.-based real estate investment advisor and subsidiary of Sagard, a global multi-strategy alternative asset management firm, and La Caisse (formerly CDPQ), a global investment group, today announced the launch of a new partnership focused on an Industrial Outdoor Storage (IOS) strategy across major U.S. infill markets, with an initial target gross asset value of CAD 490M (USD 360M) and the option to scale the partnership through further commitments.

This partnership between two major Québec institutions will deploy an IOS strategy focused on key U.S. seaport markets where strong tenant demand is driven by proximity to major ports, population centers, and trade infrastructure. Priority markets include Southern California, greater New York City/northern New Jersey, the San Francisco Bay Area, Houston, and the Baltimore/Washington, D.C., metropolitan area.

“Our partnership with Sagard enables us to create a dedicated IOS platform that strengthens our real estate portfolio construction strategy through diversification into alternative sectors,” said Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse. “IOS is a critical supply chain asset class, benefiting from strong structural tailwinds—e-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.”

“We are proud to partner with La Caisse on this new IOS strategy. Our teams have worked closely to define the markets, lifecycle, and we look forward to executing on this together,” said Mark Bigarel, President of Sagard Real Estate. “This partnership brings together two like-minded institutions with aligned values and complementary strengths. With La Caisse’s scale and long-term vision, combined with our operator-driven expertise, we are well-positioned to capture compelling opportunities in markets with strong fundamentals and durable demand drivers.”

The partnership has closed its first acquisition, an IOS investment in the highly infill Meadowlands sub-market, serving the greater New York City area. The location of the fully leased operational hub offers strong connectivity to Manhattan and the Port of New York and New Jersey, supporting long-term structural demand.

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives,” said Chad Messer, Deputy CIO and Portfolio Manager, Sagard Real Estate. “With limited supply and high demand for well-located outdoor storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.”

The partnership affirms Sagard Real Estate and La Caisse’s commitment to advancing IOS across major U.S. port and population-center markets, establishing a scalable platform supported by long-term capital and durable demand fundamentals.

ABOUT SAGARD REAL ESTATE

Sagard Real Estate is a real estate investment advisor and operator providing investment management services throughout the U.S., including portfolio management, acquisitions, debt origination, asset management, development, and property management for investors. With US$6.0 billion in assets under management, Sagard Real Estate offers commercial real estate investment strategies through separate accounts and commingled funds. Founded in 1997, the firm is headquartered in Denver and maintains regional investment offices in New York City, Charlotte, Austin, Los Angeles, and San Francisco metro areas. Sagard Real Estate is a part of Sagard, a multi-strategy alternative asset management firm.

For more information, visit www.sagard.com/realestate or follow us on LinkedIn.

ABOUT SAGARD

Sagard is a global multi-strategy alternative asset management firm with more than US$33B under management1, 190 portfolio companies, and 440 professionals.

We invest in venture capital, private equity, private credit, and real estate. We deliver flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value creation experts. Our dynamic and supportive ecosystem gives our partners the advantage they need to learn, grow and win at every stage. The firm has offices in Canada, the United States, Europe and the Middle East.

For more information, visit www.sagard.com or follow us on LinkedIn.

1As of September 30, 2025

ABOUT LA CAISSE

At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, we’re active in the major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, La Caisse’s net assets totalled CAD 517 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.

Alright, it's Monday, most people are off in Ontario, Alberta and British Columbia this week, so I expect it to be quiet in the pension world (not in markets).

This joint venture between Sagard Real Estate and La Caisse caught my attention last week for two reasons.

First, last September, I wrote about how OTPP is launching a JV with Sagard Real Estate to invest in US industrial properties.

The real estate subsidiary of Sagard is now launching a joint venture with La Caisse focused on an Industrial Outdoor Storage (IOS) strategy across major US infill markets, with an initial target gross asset value of CAD 490M (USD 360M) and the option to scale the partnership through further commitments. 

Clearly, Sagard Real Estate is attracting top Canadian pension funds because of its expertise and experience in traditional and niche strategies.

Second, I like this strategy because instead of playing pure logistics, it's more defensive and really deals with the scarcity of land issue near major ports. From the second article:

The focus is on fenced, paved yard space used by contractors, trailer operators and equipment fleets at a time when infill land near key seaports is getting scarce. Executives are pitching the strategy as a way to lock in steady income from a niche corner of the logistics chain where well-located sites are hard to find. 

The article also states:

Institutional buyers can upgrade yard operations with improvements like paving, lighting and security, but their arrival can also tighten local land markets and fuel community pushback over truck trips and shifting land uses.

But La Caisse and Sagard Real Estate both espouse sustainable investing and I doubt you'll see community pushback.

In short, I like this joint venture because if it's done correctly, you can realize great risk-adjusted returns in this Industrial Outdoor Storage (IOS) space. 

As Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse states in the press release:  

“IOS is a critical supply chain asset class, benefiting from strong structural tailwinds—e-commerce growth, global trade, and nearshoring. By leveraging Sagard’s fully integrated regional teams and proven off-market sourcing capabilities, we gain privileged access to high-quality opportunities.” 

I also like what Chad Messer, Deputy CIO and Portfolio Manager, Sagard Real Estate

“Our IOS program focuses on some of the most strategically important U.S. logistics and trade markets, and this first closing directly advances our investment objectives. With limited supply and high demand for well-located outdoor storage facilities near major seaports and population hubs, we believe this strategy is uniquely positioned to generate attractive, risk-adjusted returns through disciplined sourcing, value creation, and active management.” 

There you have it, it's all about generating great risk-adjusted returns during volatile and uncertain times.

Lastly, speaking of volatile and uncertain times, earlier today I learned Iran hit key UAE oil port and Dubai airport.

Keep in mind, La Caisse invested US$2.5 billion in 2022 to acquire stakes in DP World’s key Dubai assets, including the Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park. This partnership made CDPQ a major partner in the Middle East's largest port. 

I hope the people working there are safe and these assets were not hit in these strikes but clearly we are now seeing the risk of war on key infrastructure assets in that region.

Below, in this epsiode of The Weekly Take from CBRE, Spencer Levy explores the world of Industrial Outdoor Storage (IOS) with Brian Fiumara & Myles Harnden from CBRE and Nick Firth from Industrial Outdoor Ventures. From its unique benefits and challenges to capital markets and pricing, environmental and regulatory concerns, and future outlook, get the inside scoop on this exciting new asset class.

Also, Industrial Outdoor Storage (IOS) is booming, a discussion with expert Vytas Norusis, Senior Valuation Services Director at Colliers.

Discover a wealth of free wallet patterns in PDF format, perfect for DIY enthusiasts! Explore options ranging from simple cardholders to convertible purse designs, readily available online.

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Mobile Phone and Passport Compatibility

Beyond just cash and cards, the Spencer Ogg Sewing Patterns wallet offers surprising versatility! The design accommodates a standard-sized mobile phone, providing a secure and convenient carry solution for those on the go. Imagine consolidating your essentials into one compact accessory.

Remarkably, this wallet also fits a passport, making it an excellent travel companion. This feature eliminates the need for a separate passport holder, streamlining your travel preparations. The free PDF pattern allows for a surprisingly spacious interior, cleverly designed for modern needs!

Advanced Wallet Pattern Features

Explore innovative designs like cork wallet variations and convertible purse/wallet options with detachable straps, elevating your crafting projects!

Cork Wallet Variations & Matching Sets

Delve into the world of cork wallet crafting, discovering tutorials for creating larger and more sophisticated designs. Consider expanding your project beyond a single wallet by exploring options for coordinating matching sets. This allows for a cohesive and stylish accessory collection.

Specifically, the “Bigger and Better Cork Wallets” tutorial offers guidance on scaling up your designs. This is ideal for those seeking increased capacity or a more substantial aesthetic. Creating matching sets—perhaps a wallet, cardholder, and key chain—adds a personalized touch and makes for thoughtful gifts.

Cork provides a unique texture and sustainable alternative to traditional leather, offering a distinctive look and feel.

Bigger and Better Cork Wallets Tutorial

Explore a dedicated tutorial focused on crafting larger cork wallets, expanding beyond basic designs. This resource provides detailed instructions for achieving a more substantial and functional accessory. The tutorial caters to crafters seeking increased capacity for cards, cash, and even mobile phones.

It guides you through the process of adapting existing patterns or creating new ones specifically tailored for cork material. Learn techniques for working with cork’s unique properties, ensuring durability and a professional finish.

This tutorial is perfect for those wanting to elevate their cork wallet projects and create truly impressive pieces.

Convertible Purse/Wallet Designs

Discover innovative wallet patterns that seamlessly transform into compact purses! These designs offer ultimate versatility, adapting to your needs with detachable strap functionality. Enjoy the convenience of a streamlined wallet for everyday use, quickly converting to a hands-free purse when required.

Free PDF patterns often include detailed instructions for attaching and detaching straps, ensuring a secure and stylish transition. Explore options with varying strap lengths and attachment methods to personalize your convertible accessory.

Embrace the flexibility of a two-in-one design!

Detachable Strap Functionality

Explore the clever design element of detachable straps in convertible wallet patterns! These patterns prioritize adaptability, allowing you to switch effortlessly between a compact wallet and a convenient purse. Free PDF downloads often showcase various strap attachment methods, including snaps, clasps, or loops.

Benefit from the freedom to carry essentials hands-free or stow the strap for a minimalist profile. Many patterns offer adjustable strap lengths for customized comfort. This feature enhances the wallet’s practicality, making it ideal for travel or daily commutes.

Resources for Pattern Download & Tutorials

Find numerous websites offering free wallet patterns in PDF format, alongside helpful YouTube tutorials demonstrating construction techniques for various designs.

Free PDF Pattern Download Locations

Numerous online platforms host free wallet patterns in convenient PDF format. Websites like WeTransfer (we.tl/t-EWn7fuDLWd) provide direct access to patterns like Ragnar’s curved card wallet. Spencer Ogg Sewing Patterns offers a free coin purse/wallet pattern with detailed instructions. Searching online for “wallet sewing pattern” or “DIY wallet pattern free” yields a plethora of results, including beginner-friendly options and scrap-buster designs.

Additionally, exploring designer websites and online crafting communities often reveals exclusive freebies. Remember to always verify the source and download responsibly, ensuring the file is safe before opening it. These resources empower crafters to create stylish and functional wallets without any upfront cost.

YouTube Video Tutorials for Visual Guidance

Complementing the free PDF wallet patterns, numerous YouTube tutorials offer step-by-step visual guidance. Spencer Ogg Sewing Patterns provides a video tutorial alongside their free coin purse/wallet pattern, simplifying the construction process. These videos demonstrate cutting techniques, sewing methods, and assembly procedures, ideal for beginners.

Searching “wallet sewing tutorial” or specific pattern names on YouTube reveals a wealth of instructional content. Visual learners benefit greatly from observing the techniques firsthand, enhancing understanding and confidence. These tutorials often cover troubleshooting common issues and offer customization tips, maximizing the value of your free pattern.

Materials Needed for Wallet Construction

Essential materials include leather (various types & thicknesses), needles, thread, cutting tools, and potentially cork for variations – all to bring your free PDF pattern to life!

Leather Types and Thickness Recommendations

Selecting the right leather is crucial for a durable and aesthetically pleasing wallet. For beginners utilizing free PDF patterns, vegetable-tanned leather is highly recommended due to its ease of tooling and finishing.

Thickness varies depending on the desired wallet style. Card wallets generally benefit from 2.0mm – 2.4mm leather, providing sufficient structure without excessive bulk. For more substantial wallets accommodating phones or passports, consider 2.8mm – 3.5mm leather.

Scrap leather is excellent for practice and smaller projects, aligning with “scrap buster” patterns. Always ensure the leather is free of blemishes and has a consistent thickness throughout the piece for optimal results when following your chosen free PDF pattern.

Sewing Supplies: Needles, Thread, and Tools

Essential supplies are key to successfully crafting a wallet from a free PDF pattern. A leather sewing needle – specifically a diamond point – is vital for piercing the material cleanly. Polyester thread, known for its strength and durability, is preferred over cotton.

Tools include a rotary cutter or sharp utility knife for precise leather cutting, a metal ruler for straight edges, and an awl for pre-punching stitch holes. A mallet aids in setting snaps or rivets.

Edge bevelers and slickers enhance the wallet’s finish. Remember to select tools appropriate for the leather thickness specified in your chosen free pattern.

Construction Techniques

Master precise cutting and assembly of leather pieces, following your free PDF wallet pattern. Durable sewing techniques, like saddle stitching, ensure a long-lasting finish.

Cutting and Assembling Leather Pieces

Precise cutting is paramount when working with your downloaded free wallet pattern PDF. Carefully transfer the pattern pieces onto your chosen leather, utilizing a sharp utility knife or rotary cutter for clean lines. Remember to account for seam allowances, if not already included in the pattern.

Accuracy during cutting directly impacts the final product’s appearance and functionality. After cutting, dry-fit the pieces together to ensure proper alignment before committing to any permanent joining methods. Use leather cement or glue sparingly to temporarily hold pieces in place during assembly.

Pay close attention to the orientation of the leather grain, as this can affect the wallet’s durability and aesthetic appeal. Consistent pressure during gluing and clamping will create strong, lasting bonds.

Sewing Techniques for Wallet Durability

Robust stitching is crucial for a long-lasting wallet crafted from a free PDF pattern. Employ a saddle stitch – a hand-sewing technique – for superior strength and a professional finish. Alternatively, use a sewing machine with heavy-duty thread and a leather needle.

Backstitching at the beginning and end of each seam reinforces the stitching and prevents unraveling. Maintain consistent stitch length and tension throughout the sewing process. Consider edge finishing techniques, like edge painting or burnishing, to seal the leather edges and prevent wear.

Reinforce stress points, such as corners and card slots, with additional stitching or rivets for enhanced durability.

Customization Options

Personalize your wallet using a free PDF pattern! Add embellishments, linings, or adjust sizes to create a unique and functional accessory reflecting your style.

Adding Personal Touches: Embellishments & Linings

Elevate your free PDF wallet project with creative embellishments! Consider adding decorative stitching, rivets, or even small leather appliques for a unique flair. Experiment with different lining fabrics – cotton, felt, or even patterned materials – to not only enhance the aesthetic but also provide added durability and structure.

Linings can also conceal raw edges and offer a more polished finish. Don’t be afraid to explore contrasting colors or textures to make your wallet truly stand out. Remember, a free pattern is a canvas for your imagination; personalize it to reflect your individual style and preferences!

Adjusting Pattern Sizes for Individual Needs

Utilizing a free wallet pattern PDF doesn’t mean you’re locked into a single size! Many patterns, like those offering multiple spacing options (2.7mm, 3.0mm, 3.38mm, 3.85mm), provide a foundation for customization. If you require a larger or smaller wallet, carefully scale the pattern during printing, ensuring proportional adjustments are made to all components.

Consider the dimensions of your cards and cash when making alterations. For matching sets, explore tutorials like “Bigger and Better Cork Wallets” for guidance on size variations. Remember to test the adjusted pattern with scrap material before cutting into your final leather!

Troubleshooting Common Issues

Address STL file errors by double-checking exports before cutting. Leather cutting challenges can be overcome with sharp tools and careful pattern alignment.

Addressing Errors in STL Files

Encountering issues with STL files is common when working with digital patterns. Before committing to cutting your leather, meticulously inspect the downloaded file. The creator notes that they cannot be held responsible for export errors, emphasizing the importance of self-verification. Look for gaps, overlaps, or distorted shapes within the file preview.

If discrepancies are found, consider re-downloading the file or attempting to open it in a different STL viewer. Sometimes, software compatibility can cause rendering problems. Remember, a flawed STL file will translate into an inaccurate cut, potentially ruining your material. Prioritize careful examination to ensure a successful project!

Dealing with Leather Cutting Challenges

Cutting leather accurately requires sharp tools and a steady hand. When using patterns, ensure they are securely adhered to the leather to prevent shifting during cutting. For intricate designs, a rotary cutter can provide cleaner lines than a traditional knife, especially with thinner leathers.

Be mindful of leather grain direction; cutting against the grain can lead to stretching or uneven edges. If you’re new to leatherwork, practice on scrap pieces first to refine your technique. Patience is key – rushing can result in mistakes. Utilize the extra bodies included in some STL files for alignment assistance.

Where to Find More Patterns

Explore online communities, forums, and designer websites for additional free wallet patterns and inspiration to expand your crafting possibilities!

Online Communities and Forums

Engage with fellow crafting enthusiasts in vibrant online communities and forums dedicated to sewing and leatherwork. These platforms are treasure troves of shared knowledge, offering access to numerous free wallet patterns often not found elsewhere. Members frequently share their own designs, modifications, and helpful tips for successful construction.

Participate in discussions, ask questions, and showcase your completed projects to receive valuable feedback and inspiration. Websites like Reddit (specifically subreddits focused on leathercraft or sewing) and dedicated crafting forums provide a supportive environment for learning and discovering new patterns. Don’t hesitate to search within these communities using keywords like “free wallet pattern PDF” to uncover hidden gems!

Designer Websites Offering Freebies

Many independent designers generously offer free wallet patterns in PDF format as a way to showcase their skills and attract customers. Spencer Ogg Sewing Patterns, for example, provides a free pattern for a two-pocket coin purse/wallet, complete with instructions and a video tutorial.

Explore websites specializing in sewing patterns; often, they feature a section dedicated to free downloads. Regularly check these sites, as freebies are often time-limited promotions. Searching directly for designers offering “free wallet pattern PDF” can yield excellent results, leading you to unique and high-quality designs.

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