New York State Common Retirement Fund, Albany, is investigating the 20 private equity and hedge funds mentioned in indictments of former CIO David Loglisci and Henry Morris, a top adviser and chief fundraiser for former state Comptroller Alan Hevesi, acknowledged Robert Whalen, spokesman for Thomas DiNapoli, current comptroller and sole fund trustee.
Funds include Access U.S. General Partners LP, Access/NY European, Liberty Oak Capital Fund/CSG, Olympia Capital Management SA, FS Equity Partners V, Ares Corporate Opportunities Fund, Pharos Capital Group, Carlyle Realty Partners IV-A, Carlyle Europe Real Estate Partners II, Carlyle/Riverstone Global Energy & Power Fund II, Carlyle/Riverstone Global Energy & Power Fund III, Carlyle/Riverstone Renewable Energy Infrastructure Fund I, Paladin Homeland Security Investment Fund (NY), Pequot Private Equity IV, Pequot Diversified Offshore Fund and GKM/NY Venture Capital Fund, Aldus/NY Emerging Fund and Odyssey Investment Partners Fund III.
No firms whose funds were mentioned in the indictment have been charged.
Fund officials are evaluating the procedures, performance and expectations of those investments, said Mr. Whalen.
Messrs. Loglisci and Morris allegedly conducted a fraudulent scheme to enrich Mr. Morris and others with close ties to the pair by getting kickbacks from private equity and hedge fund managers seeking capital commitments from the $121.9 billion fund.
Separately, New Mexico Educational Retirement Board, Santa Fe, suspended Aldus, its private equity consultant, pending review of possible involvement in the New York fund scandal, said Bob Jacksha, CIO of the $6 billion board.
An Aldus Equity Partners statement said the firm is working 24-7 to address these issues. ... There are many misperceptions, and we will be diligent to communicate with clients on the matter.