Kennedy Heir Cashes in while Rainmaking with Union Pension Funds

Edward Kennedy, Jr. has made $1.2 million over the past 3 yrs. in union pension fund investments in real estate to the tune of $100 million.  Intercontinental Real Estate Fund III charges an annual 1.25% mgmt. fee, plus an extra 0.9% fee for marketing expenses, part of which goes to Kennedy’s Marwood Group.  Sixty pension funds, mostly those of unions who also support his father, Sen. Edward Kennedy (D-MA), have invested in Intercontinental.


But recently, the Chicago Teachers Pension Fund refused to pay the marketing fee.  “It took a lot of nerve even to ask us for the money,” said trustee Jacob Silver.  Intercontinental hired him [Kennedy] — we didn’t.”  When the teacher fund’s trustees refused to pay, Intercontinenetal swallowed the marketing fee.  Undeterred, Intercontinental has retained Kennedy to raise another $250 million, for which Kennedy could earn up to $4 million. [Forbes, 4/19/04]