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New York State Pension Reveals Sept Investments in Alternatives
by Marc Raybin ,Editor November 4, 2009
The New York State Common Retirement Fund (CRF), one of the largest public pension plans in the nation, released its September transaction report on Wednesday. NYS Comptroller Thomas DiNapoli recently instituted its monthly report in an effort to increase transparency in the wake of allegations of a long-running pay-to-play scandal having taken place under his predecessor’s watch.
In September, the CRF made a $200 million investment in a Hellman & Friedman private equity fund. This investment was made on Sept. 8. Hellman & Friedman Capital Partners VII closed in October on $8.8 billion, the largest in the firm’s history. This fund focuses on making investments valued at between $300 million and $1.2 billion in the United States and in Europe. The firm closed its first fund in 1987.
Hellman & Friedman has offices in New York, San Francisco and London. The firm focuses on business services, information services, Internet/digital media, asset management, insurance, media, healthcare, energy and industrials.
The CRF also allocated money in hedge funds. The pension plan put $50 million to work in a fund operated by Diamondback Partners. The hedge fund firm operates a U.S.-focused long-short equity fund. The CRF has an ongoing relationship with Diamondback, and the latest investment was made on Sept. 1.
The CRF said it did not put any capital to work in September in domestic equity or international equity. The CRF did make two investments in real estate valued at more than $633,000.
No placement agents were used in any of these investments. That’s because DiNapoli banned the use of third-party fund-raisers in response to the ongoing investigation into the alleged pay-to-play scandal that has rocked the CRF.
State and national lawmakers and regulatory agencies have secured a handful of confessions in the alleged scandal in which both private equity and hedge fund managers admitted to making payoffs to people connected to the CRF in exchange for the pension’s investment.
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