August 4, 2009
I work for a placement agent and this new provision will negatively impact our business. We help private equity funds find institutional investors and public pension funds are part of the mix. We are not advisors, we are advocates for our client and all parties are aware of that. It is the quality of the funds that we represent and the due diligence process that they are subjected to that determines whether or not an investment is made. Some of these new funds will never make it into the market if we and others like us are unable to introduce them. Innovation will be lost and talent will be squandered. The people who were involved in pay to play schemes knew they were breaking the rules and they did it anyway. Don't punish the rest of us for the transgressions of a few. It is unwise and unfair and those who are inclined to cheat will just find another way to do it.