Wien’s Words Imperil Blackstone-NYC Pension Deal

Jan 5 2011 | 11:27am ET

Here’s one surprise Byron Wien probably didn’t see coming: That his annual list of ten surprises might cost his firm lucrative mandates from three New York City pension funds.

The city Comptroller’s office cancelled a meeting with Blackstone Group President Tony James which had been scheduled for Friday, Bloomberg News reports. The reason? The Big Apple’s union chiefs are peeved that Wien—in his annual forecast a year ago—said that the country “literally can’t afford the benefits we have given our retirees in state and local government and we have to change that.”

James and other Blackstone honchos have since made clear that they disagree with Wien, the former Morgan Stanley and Pequot Capital Management strategist. But those statements haven’t appeased the union representatives who help decide who gets the pensions’ money.

The anger didn’t stop the city’s five pension funds from handing Blackstone $225 million last year. But the three which were to meet with James this week apparently want Wien to retract his statement before they’ll hire Blackstone to manage money as part of a new hedge fund strategy.

It seems no one at consultancy Aksia has said anything amiss, as it was hired to advise the pensions on that new strategy last month.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note