Monday, 20 October 2014
Last updated 3 days ago
Apr 9 2010 | 1:23am ET
The Blackstone Group is putting its considerable weight behind an effort to ban alternative investment firms from paying contingency fees to placement agents.
The New York-based private equity giant, which owns its own placement agency, the Park Hill Group, has hired a California lobbying firm as part of its bid to see the bill defeated in the California Legislature. Despite the recent pay-to-play scandal at New York’s main public pension fund, Blackstone says that placement agents, which typically get between 0.5% and 3% of the mandates they win for clients, are getting a bad rap.
“It’s just like the state of California looking to sell bonds,” Blackstone spokesman Peter Rose told Bloomberg News. “They would hire a middleman”—a municipal bond underwriter—“to market those bonds to whoever buys bonds.”
But California’s treasurer and the country’s largest public pension fund, the California Public Employees’ Retirement System, which proposed the bill, disagree.
“The contingency fees are too much of a jackpot for placement agents” and “invite corrupt practices,” California Treasurer Bill Lockyer told Bloomberg.
And Lockyer warns that Blackstone and other placement agents should be careful of what they wish for. If the current bill fails—it requires a two-thirds majority vote by the Legislature—he said he will propose a bill to ban placement agents from both CalPERS and the California State Teachers’ Retirement System, the second-biggest public pension fund in the U.S.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...