Could LPs End Markstone? The Answer Is Yes
Earlier this month, Markstone Capital Partners co-founder and chairman Elliott Broidy pled guilty to a felony count of rewarding official misconduct, as part of the New York pay-to-play scandal. According to New York Attorney General Andrew Cuomo, Broidy had bribed state pension officials with around $1 million worth of gifts, in order to secure a $250 million investment for Markstone. Not a bad barter, if you have no scruples and can get away with it (Broidy didn't, and he couldn't). Broidy immediately resigned from Markstone, and was replaced as chairman by a former Israeli ambassador to the UN. What remains unclear, however, is if Markstone investors will pull the plug. peHUB has obtained a copy of Markstone's fund PPM, which includes the following passage about early termination:
