Private equity firm Carlyle has reached a deal with the New York attorney general to change how the firm conducts its business with public pension funds, in a decision that will likely change the industry as a whole, according to the Wall Street Journal. Carlyle has agreed to change its policies regarding bidding for pension business, including steps that will prohibit it from making certain campaign contributions.
Carlyle, which manages $85 billion in assets, has agreed to adopt restrictions pertaining to financial contributions to those people who have access to or control over public pension funds. The private equity firm has also agreed not to hire lobbyists to make bids on pension business.
The private equity firm also will make a settlement payment of $20 million. Carlyle said that it hopes the agreement will “set a new standard for ethics in the industry.”
Attorney General Andrew Cuomo billed his moves against Carlyle as an effort to stem the use of undue influence by certain brokers who have lines to Washington. “People have grown to accept a certain level of corruption,” said Cuomo. “We want to stop politically connected brokers who are just selling access.”