Random NY Scandal Ramblings
Some assorted items related to the New York "pay to play" scandal: Item I: Most of the tainted fund commitments come out of NY Common’s general fund. Several of them, however, come out of pools managed by outsourced managers like Aldus Equity and Hamilton Lane. I spoke to someone familiar with the set-up, who said that such pools are only quasi-discretionary. Aldus, Hamilton Lane and others do initial due diligence and make recommendations to NY Common, but do not have sole discretion. Moreover, the deal-flow can reverse, with NY Common asking the managers to research certain fund managers. Item II: Aldus and GKM (another outsourced manager) are all over the SEC complaint. Hamilton Lane – which also happens to be NY Common’s primary PE consultant – isn’t mentioned once.
