NYC systems launch review after former CIO joins Platinum Equity

The New York City Retirement Systems launched an internal review after former CIO Alex Done joined Platinum Equity, an investment firm with which the pension system has made commitments of about $1.35 billion in alternative investments between 2011 and 2021.

"It raises concern when the CIO for retirement systems that invest billions of public dollars with Wall Street firms goes directly to employment with a fund that the systems have invested in," Brad Lander, the city comptroller and fiduciary for the five pension funds within the $263.2 billion retirement system, said in an emailed statement.

"I'll be looking closely at strengthening our post-employment rules during my tenure in light of this news," he added.

Each of the five pension funds has an independent board of trustees. Even though the pension system CIO, whose official title is deputy comptroller for asset management, handles investments, the boards choose which ones — and how much — they want. The amounts of commitments to Platinum vary among the five pension funds.

"The comptroller has asked our general counsel to conduct an internal review to see whether all rules were followed and to look into whether post-employment restrictions need to be strengthened," a spokesperson for Mr. Lander wrote in an email.

"Mr. Done and all other Comptroller's employees were advised and regularly trained regarding the ethical rules associated with applying for private sector employment and post-employment restrictions," the spokesperson wrote. "Based on the information available to date, it appears that Alex Done recused himself from all Platinum matters in November 2021, in accordance with NYC Conflicts of Interest Board guidance."

The city charter rules impose an "appearance ban" prohibiting public servants from appearing before the city agency served by the public official within one year after leaving city employment. Thus, Mr. Done cannot represent Platinum before the comptroller's office for one year after leaving city service.

Mr. Done left the CIO job on Dec. 31, coinciding with Mr. Lander taking office Jan.1 after winning an election in November.

Mr. Lander succeeded Scott Stringer, who served two four-year terms as comptroller and could not seek the job again due to term limits.

Mr. Done became interim CIO in June 2018 following the departure of Scott Evans. After a national search, Mr. Stringer appointed Mr. Done as the permanent CIO. Previously, he had been the pension system's deputy CIO for private markets.

In a Dec. 13 interview with Pensions & Investments, Mr. Done said Mr. Lander had asked him to remain in the CIO job. Mr. Done told him he wanted to explore new opportunities.

He joined Los Angeles-based Platinum Equity on May 9 as a managing director, according to a company news release.

"Mr. Done will contribute not only to the firm's investor and investment funds platforms, but also be involved in leadership and strategic planning on broader firm issues including investment product development and efforts in the environmental, social and governance and diversity, equity and inclusion arenas," the news release said.

A company spokesman didn't respond to a request for comment by press time.