US - Private equity giant Carlyle will pay US$20m to the State of New York to resolve its role in the attorney general Andrew Cuomo ongoing investigation into corruption at the New York State Common Retirement Fund (NYSCRF).
It said prior to retaining Morris, Carlyle had experienced limited success in obtaining investments from NYSCRF.
However, it continued, after retaining Morris, Carlyle obtained approximately $730m in total investment commitments from NYSCRF in Carlyle funds and Carlyle/Riverstone funds. In exchange, Carlyle paid Searle & Company, the broker-dealer associated with Morris, nearly $13m.
In a statement, The Carlyle Group said: "We are pleased to announce today that we have reached a successful resolution with the attorney general and strongly support his efforts to implement reforms that usher in a new era of transparency and accountability into the pension fund investment process."
The attorney general's office said Carlyle would also adopt Cuomo's Public Pension Fund Code of Conduct.
The code of conduct bans investment firms from hiring, utilizing, or compensating placement agents, lobbyists, or other third-party intermediaries to communicate or interact with public pension funds to obtain investments.
"Our code of conduct will help eliminate the conflicts of interest and corruption inherent in a system that allows people to buy access to those holding the pension fund purse-strings," said Cuomo.
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