Naturally, LP Capital Advisors was pleasantly surprised by the reversal. Managing Director James Griffin said, “Our expectation was that StepStone had won the work,” and “we were the runner up.” StepStone has declined to comment.
Charles Wollman, the investment council’s chief information officer, did not offer a reason for the change, telling sister Web site peHub only that the state was “unable to reach a mutually satisfying agreement” with StepStone. In his words: “It was not to be.”
One reason for the switch, according to one peHub source, could be that StepStone’s former president, Steve Moseley, was previously a co-president at Pacific Corporate Group. PCG was named in a pay-to-play lawsuit involving the
New Mexico is particularly sensitive to such issues. The state investment council is also embroiled in a pay-to-play scandal that is under investigation by federal authorities. In addition, former governor Bill Richardson has come under scrutiny for his role as chairman of the State Investment Board. As board chairman, Richardson was alleged to have steered some funds to managers whom he personally favored.
LP Capital Advisors does not manage money, and has not been mentioned in any pay-to-play investigations.
Based in Sacramento, the firm counts the
LP Capital Advisors expects to sign its contract with the state investment council shortly.
peHUB.com’s Jonathan Marino contributed to this report.