Governor Bill Richardson and the
The developments come in the wake of the pay-to-play scandal involving
The new policy for the New Mexico State Investment Council forbids investments with managers who use outside placement agents to market their fund or services. Managers who use internal marketing teams must disclose details of those relationships. Details of all third-party fees will be made public before investment finalization, including fees paid to attorneys, consultants, brokers, administrators and others. The policy also prohibits managers or contract holders from making campaign contributions to elected or appointed officials who may have influence over the New Mexico State Investment Office or its advisory and oversight boards for the full term of the investment, as well as the two years before.
Penalties call for the New Mexio State Investment Council to recoup damages and repayment of management fees from any manager who does not fully disclose a financial benefit to individuals related to a state investment. These penalties bolster the law enacted last month that made failure to disclose third-party marketers a felony in New Mexico.
The state made no commitments to private equity in April or May, and probably won’t make any for a while, until a new private equity adviser is hired, Charles Wollmann, public information officer for the New Mexico State Investment Council, told Buyouts. The LP also intends to redo the due diligence on the funds that were recommended by the private equity committee.