Report of Independent Counsel to SEC: Placement Agent Abuses at Kentucky Retirement System
33 Pages Posted: 19 Jul 2012 Last revised: 21 Dec 2012
Date Written: March 12, 2012
Findings are that KRS should seek to recover the millions in undisclosed placement agent fees paid by KRS’ managers from the placements agents and the managers. However, given the over $1.3 billion in KRS assets potentially involved, investment-related damages well in excess of the placement agent fees discovered to date likely exist and may be recoverable. The paper also finds that the previous review by the Kentucky State Auditor of Public Accounts was inaccurate and had numerous omissions.
Keywords: public pensions, pension, state retirement funding, placement agents, hedge funds, private equity
JEL Classification: H55
Suggested Citation: Suggested Citation