Monday, February 20, 2012
Why Chicago police pension funds want firm with Daley relative out
I t’s been six years since five Chicago government pension plans hired DV Urban Realty — a start-up investment firm founded by then-Mayor Richard M. Daley’s nephew Robert G. Vanecko and President Barack Obama’s friend and former boss Allison S. Davis — to manage $68 million in retirement funds.
Those investments haven’t gone well for the pension funds that represent Chicago teachers, police officers, other city employees and transit workers. The funds have paid DV Urban a total of $7.2 million, including $4.7 million in fees to manage the small share of the pension funds’ money and another $2.5 million for a sister company to oversee the operations of three buildings bought with pension money.
Pension officials — including Mayor Rahm Emanuel’s two top financial advisers — are unhappy. By their estimation, the value of the funds’ real estate investments with DV Urban has fallen by 28 percent, or about $19 million.
CLICK HERE FOR THE FULL NEWS STORY