German dentists’ pension fund Versorgungswerk der Zahnärztekammer Berlin (VZB) has begun legal action following €1.1bn in private market losses.
The fund named advisers, auditors, former executives and the state of Berlin over alleged governance and oversight failures.
VZB covers dentists across Berlin, Brandenburg and Bremen and saw heavy losses after a series of venture capital-backed businesses collapsed, leaving around half of its assets written off.
Those named in the case include ApoBank, audit and consulting firm Forvis Mazars, nine current and former committee members and the Berlin state government, which has supervisory responsibility for the scheme.
VZB has asked the courts to rule on jurisdiction as some defendants are not based in Berlin.
The case comes as private market investment strategies are under increasing scrutiny internationally. In the UK, the government is encouraging multi-employer pension schemes to commit more capital to private markets to boost long-term returns and support economic growth, underlining the potential risks as well as rewards of such approaches.
