Blackstone has opposed a California Public Employees’ Retirement System (CalPERS) proposal prohibiting money managers from paying contingency fees to middlemen, who help obtain pension fund contracts, Bloomberg reports. The bill has been passed by the State Assembly’s Public Employees, Retirement and Social Security Committee.
Blackstone and Sifma contend that smaller investment firms, unable to afford in-house marketing teams or retainers for placement agents, would find it difficult to market themselves without the use of contingency fees. The private equity firm has retained law firm, California Strategies, to lobby against the contingency fee provision of the bill.
Click here for the complete story.
