Five Chicago pension funds had valid cause in terminating DV Realty Advisors earlier this year, according to a decision from Delaware Chancery Court Judge John Noble.
The five funds — the $9.7 billion Public School Teachers' Pension & Retirement Fund, $5.1 billion Municipal Employees' Annuity & Benefit Fund, $3 billion Chicago Policemen's Annuity & Benefit Fund, $1.8 billion Transit Authority Employees Retirement Plan and $1.4 billion Laborers' Annuity & Benefit Fund — combined have invested about $66.5 million in DV Urban Realty Partners I and own 95.1% of the limited partnership interests, according to the court decision. The fund was launched in 2006.
The decision cited a part of the limited partnership agreement that states, “both general partners may be removed without cause by an affirmative vote or consent of the limited partners holding in excess of 75% of the (limited) partnership interests then held by all limited partners; provided that consenting limited partners in good faith determine that such removal is necessary for the best interest of the (limited) partnership.”
The judge ruled the pension funds acted in good faith in terminating DV Realty Advisors after showing the firm repeatedly failed to provide audited financial statements on time.
Jared Davis, a principal with DV Realty, did not return a telephone call for comment by press time.