New Mexico State Investment Council, Santa Fe, on Monday settled a dispute with private equity manager Spyder Management, which agreed to pay $3 million to the council and buy the remainder of the council’s investment with the firm for its current net asset value of about $1.9 million, said Charles Wollmann, spokesman for the $20.5 billion endowment.
The council in 2005 committed $9.4 million to Silver Creek Ventures II, managed by Spyder Management. The council and Spyder Management executives have been negotiating over SIC claims that Silver Creek investors paid a placement fee to third-party marketer Marc Correra whose father, Anthony, was allegedly an unofficial adviser to former Gov. Bill Richardson. The council has not sued Spyder Management.
So far, the SIC has settled for more than $32 million with investment managers and individuals based on contentions that those cited used third-party firms, subverting the council’s investment process for their own benefit.
The SIC sued more than a dozen entities and individuals, including the two Messrs. Correra, in relation to the payments; a trial is expected in 2016.