State of Connecticut Retirement & Trust Funds, Hartford, suspended Pioneer Ventures Associates from further investment activity under its contract to invest $75 million for the $21 billion fund.
Connecticut Treasurer Denise L. Nappier said at the boards meeting this week that Pioneer failed to act on its verbal promise to reduce the mandate to $50 million. Pioneer and 11 other private equity firms that former state Treasurer Paul J. Silvester hired in the last quarter of 1998 have been providing documents about their dealings with Mr. Silvester, who pleaded guilty to charges of taking cash kickbacks. So far, Pioneer has drawn more than $43 million of the $75 million commitment made by Mr. Silvester.
Robert A. Lerman, managing director at Pioneer, said in a statement that the firm has cooperated fully in the ongoing investigations and that it expects to reach an agreement with Ms. Nappier about reducing the commitment by $25 million.
Separately, the system has selected Ennis Knupp, BARRA RogersCasey and New England Pension Consultants as finalists for a general consultant. No timetable for a final decision has been set.