New York State Common Retirement Fund related stories
All articles and analysis
Just Stepping Out for A WalkGreetings for the last time in a long time, as I’m heading off for a two-week vacation. Destination is Peru, including a trek along the Inca Trail (to Machu Pichu) and a visit to the floating islands of Lake Titicaca. peHUB will continue to be updated in my absence, with Erin Griffith and Connie Loizos doing most of the heavy lifting. The daily peHUB Wire email also will be published, with Erin taking over (email her mailto:erin.griffith@thomsonreuters.com any news items). We’ll also have some guest columnists for you. Be back on June 1, to write about things like the irony of VC firms raising annexes for funds they once cut in size (hello MDV) and how that Clinton Group co-investment fund for NYSCRF (the one that snared Barrett Wissman) has actually performed pretty well. Same blog time. Same blog channel...
- peHUB Wire: Friday, May 15, 2009
Random Carlyle/Cuomo Ramblings
- peHUB Wire: Friday, May 15, 2009
Random Carlyle/Cuomo Ramblings
- Random Ramblings on Carlyle Announcement
I'm still trying to digest everything from Andrew Cuomo's announcement regarding The Carlyle Group /39899/cuomo-to-announce-new-kickback-developments/ which has agreed to repay $20 million and sign a "code of conduct." Here are my gut reactions, which I hope to refine later today: * Cuomo is kidding himself, if he truly believes that his "code of conduct" will be adopted by the private equity market at large. First, it is obvious that Carlyle only adopted it under duress. Second, Carlyle did not agree to apply the code's principles outside of the U.S. (i.e., outside of Cuomo's jurisdiction). Third, most firms do not have the in-house resources of a Carlyle, which negates the possibility of following its lead vis-a-vis not using placement agents. Moreover, this isn't a high school sport where the freshman follow the senior captain's example. Private equity firms -- big and small -- pay attention to Carlyle, but don't necessarily try to mimic it. * The $20 million is a slap on the wrist. Here's some context: Carlyle co-founder David Rubenstein paid more than $20 million for a copy of the Magna Carta (which he's loaned to The National Archives). * The $20 million isn't even a real slap, because everyone is calling it a "payment" instead of a "fine." If Carlyle is repaying ill-gotten gains (even if the ill was caused by someone else), why repay so little of them? Imagine I steal a diamond bracelet and give it to my wife, without telling her of its origins. When the police come knocking, she can't keep some of the diamonds for herself, even though she wasn't the bad actor.
- The Day In Kickbacks
Another day, another development in the pension fund kickback scandal. This time it’s a guilty plea /39685/former-wetherly-placement-agent-pleads-guilty-in-pay-for-play-wsj/ from Julio Ramirez, who committed securities fraud by scheming with Hank Morris to secure investments from New York State Common Retirement Fund. At the time, he was working for placement agency Wetherly Capital. Ramirez, you might recall, was in this space just three weeks ago – when we reported that he had left placement agent Park Hill Group, an affiliate of The Blackstone Group. Blackstone spokesman Peter Rose told me at the time – and reiterated yesterday – that Ramirez voluntarily gave notice at the beginning of January, and his last day was March 31. Ramirez did not mention anything about the pending investigation, although Blackstone subsequently did its own review (including a sweep of Ramirez’ emails) to make sure he hadn't been double-dealing while with Park Hill. Rose /wp-content/uploads//hand_shake_dealce03.jpg says that Blackstone found no such evidence. Kind of kicking myself for not publicly tying Ramirez to the kickback scandal in that original item, but I didn’t feel like I had enough to go on – particularly because he had told Blackstone and others that he was leaving to hang his own shingle. So let me now double-back and trust my instinct on a couple of things:
- LP corner, week of May 11, 2009
News briefs about LPs in New York and Nevada
- LP Briefs, May 2009
News briefs about institutional investors in Illinois, Maine, Maryland, New Mexico, New York, Texas and more
- Aldus Attorney: SEC Complaint "Appalling and Careless"
Aldus Equity has released its reaction to today's civil complaint by the SEC, which has accused Aldus and its founder, Saul Meyer, of securities fraud. The firm issued a response through its attorney, which Buyouts shared with us. Here are some choice excerpts: The attorney representing Aldus Equity, the firm the U.S. Securities and Exchange Commission wants to add to its civil complaint regarding investments fro the New York State Common Retirement Fund, today called the threatened legal action "appalling and careless" with the law and with people's reputations. Matthew D. Orwig said the SEC filed its court motion without completing an investigation or fulfilling a commitment to meet with Aldus principles before taking any legal action. "We've been trying to communicate with them for the last two weeks," said Orweg. "how can they make these public statements before they complete and investigation? Maybe they want a 'trial by news release' but that's not the way the judicial system works." Separately, Aldus responded to charges against Meyer specifically: "At Aldus, we can't begin to describe our disappointment and astonishment regarding the unexpected legal developments in New York today. Saul Meyer has been our colleague for five years, and our heart goes out to Saul and his family during this unsettling time. Obviously, as this time, Saul's full focus will be on his issues in New York. At the firm, we are working rapidly to communicate with our clients, employees and associates. Our highest priority is the commitment to our clients' best interests. In the immediate and long-term future, we will apply all of our resolve, focus and talents to those goals."