Crisis at Jagdeep Bachher’s University of California Investment Office
Approximately half of the people Bachher’s team hired are gone… At least three members of the senior investment staff are actively eyeing the door… UC’s governance model endows the chief investment officer with extraordinary power and provides scant oversight. There is no investment office CEO to serve as a check on the CIO, as is the case at many other funds of UC’s size and complexity… The stakes of unilateral decision-making became unsettlingly obvious last year, according to four senior investors serving at the time. Bachher decided to invest about $250 million with Main Street Advisors, the wealth management outfit run by ex–investment chair and Bachher backer Wachter. The deals broke no UC rules and had approval from the Office of the General Counsel…
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by Leanna Orr, Institutional Investor.