Riverstone Settles with New York
Private equity firm Riverstone Holdings has reached a settlement with the NY Attorney General's office, related to the New York pension fund kickback scandal. Under terms of the agreement, Riverstone will pay $30 million and adopt a "code of conduct" related to its future fund-raising activities. This is similar to a recent settlement reached between New York and The Carlyle Group, which agreed to pay $20 million and adopt the same rules. One big difference, however, is that Carlyle Group also received assurances that none of its executives would be prosecuted for their dealings with the New York State Common Fund. Riverstone has not received a similar promise for firm co-founder and senior managing director David Leuschen, who remains under investigation.
