The state’s comptroller, Thomas DiNapoli, has banned the use of placement agents in investments with the $122bn pension, and has launched a review of pension investments with firms involved in the New York Common kick-back scandal.
The New York Common scandal will tar the reputation of placement agents unless market participants disseminate and enforce a clear distinction between valuable fundraising services and sleazy influence peddling, writes David Snow.
The Canadian pension's private equity platform had a negative 32% return last year, which it blamed in part on two Lone Star funds. It also took large hits on its real estate and infrastructure investments.
The state’s comptroller, Thomas DiNapoli, has banned the use of placement agents in investments with the $122bn pension, and has launched a review of pension investments with firms involved in the New York Common kick-back scandal. The Carlyle Group has agreed to stop using placement agents in connection with public pension funds.
The New York firm has raised slightly more than its original $1bn target for its sixth vehicle.
William Thompson, New York City’s comptroller who controls the city's five combined pensions, has called a meeting of trustees of the five pensions to consider the ban. Thompson has also asked New York’s attorney general to investigate Quadrangle, to which the city's pensions committed $125m in 2005 and 2006.
New Mexico State Investment Council may place on hold $60m in commitments to funds being raised by Landmark and New Stone Capital as it investigates finder’s fees paid by private equity advisor Aldus Equity, which the endowment suspended following the emergence of an alleged New York State Common Retirement Fund pay-to-play scheme.
The London-listed fund of funds has decided it will continue life as a listed investment trust, but will not be making any meaningful new fund commitments for up to two years.
The $165bn pension, the largest in the US, has narrowed its candidate list for private equity consultant to four – Aldus Equity, Ennis Knupp, Brock Capital and Pension Consulting Alliance. The pension’s staff will choose two of the four firms to move into the final phase of the selection process.
William Thompson, the comptroller for New York City, is investigating whether Quadrangle Group ‘intentionally misled or deceived’ city pensions by withholding payments of finder’s fees to a company controlled by Henry Morris, who has been indicted in New York State’s $122bn pension kick-back scandal.