Marshall Sprung to lead compliance at Blackstone

The former SEC enforcement officer is joining the Blackstone Group as global head of compliance.

The Blackstone Group has appointed Marshall Sprung as global head of compliance, a source close to the firm has confirmed.

Sprung joins the private equity firm from the US Securities and Exchange Commission (SEC), where he worked for 13 years. Most recently he co-headed the SEC’s Division of Enforcement's Asset Management Unit for over two years and succeeded Julie Riewe when she left the agency in February.

During his tenure he oversaw investigations of investment advisers for various forms of misconduct involving valuation, disclosure, conflicts of interest, fund governance and compliance and controls.

Under Sprung’s supervision, the unit brought enforcement actions and charges against a number of firms, including Kohlberg Kravis Roberts which paid nearly $30 million for misallocating more than $17 million in so-called “broken deal” expenses, which was the agency’s first action to address such conduct, according to statement from the SEC.

Blackstone’s website currently lists 15 people in its legal and compliance teams located across the firm’s offices in New York, London and Hong Kong.

The firm recently made a number of changes to its management structure in Asia, including the promotion of Susannah Lindenfield to general counsel and Jan Nielsen to chief operating officer, as reported.

Sprung’s move to Blackstone was first reported by Bloomberg News this week.