Random NY Common Scandal Ramblings
I wrote last week that NY Common was particularly ripe for corruption, because its system is designed as a single fiduciary. One bad apple, therefore, is the only apple. The only other state with a similar system was Connecticut, and that ended up with both an elected treasurer and private equity manager in prison. But maybe I transposed the cause and effect. As someone suggested to me yesterday: “The corruption didn’t happen because it was a single fiduciary. It got exposed because it was a single fiduciary.” In a related line of thinking, perhaps Loglisici’s strategic mistake was using one corrupt “placement agent,” instead of using three or four. *** I’ve had multiple public pension managers (past and present) tell me some version of the following: “I am/was responsible for X% of the private equity portfolio. It was made clear to me that I shouldn’t concern myself with the rest.”
