NYC Does Right By Both Pensions and Placement Agents
I have not yet met new NYC Comptroller John Liu, but he already seems to be a vast improvement over his predecessor (and not just because he quoted my obscenity in an official announcement of Larry Schloss as CIO). The latest example came this morning, with Liu announcing that he will lift an existing ban on private equity placement agents doing business with the NYC pension system. There are, however, several new conditions: 1. Placement agents must be registered with the SEC and/or FINRA 2. Placement agents must describe the services provided 3. Placement agents must demonstrate that they have helped raised at least $500 million from other entities (i.e., not NYC) in two of the past three years. Moreover, those using placement agents now would be required to disclose their usage, including any associated fees. Fund managers seeking NYC business also would be required to disclose any contacts with Comptroller’s Office employees, and would be precluded from providing any gifts or campaign contributions to NYC pension officers.
