Markstone Capital Reaches Resolution with New York Attorney General

NEW YORK, Feb. 8 /PRNewswire-USNewswire/ -- Markstone Capital, a private equity firm based in Tel Aviv, is pleased to announce that it has reached an agreement with the New York State Attorney General ending his pension fund inquiry related to the conduct of its former Chairman, Elliott Broidy.  

In December 2009, Mr. Broidy resigned from the firm and pled guilty to one count of rewarding official misconduct.

"Markstone’s agreement with the Attorney General enables us to move forward with our core business, which is investing in Israeli companies," said Ambassador Dan Gillerman, Chairman of Markstone Capital.

Markstone Capital has agreed to make an $18 million payment to the New York State Common Retirement Fund over the next three and a half years as a result of its previous affiliation with Mr. Broidy.  This payment will not come from assets held on behalf of investors, and will have no impact on any investor who has placed funds with Markstone. This agreement is similar to the civil agreements made by other private equity firms such as Carlyle and Riverstone.

In addition, Markstone will adopt the Attorney General’s Code of Conduct which applies a new standard for ethics in the private equity industry.  This Code of Conduct bans investment firms from hiring, utilizing, or compensating placement agents, lobbyists, or other third-party intermediaries to communicate or interact with public pension funds to obtain investments.  Markstone is committed to the principles set forth in the Code of Conduct and supports the efforts of the Attorney General to implement reforms designed to ensure transparency and accountability in the pension fund investment process.

"Our adoption of the Code of Conduct reflects Markstone’s commitment to the highest ethical standards,” Ambassador Gillerman stated. “We aim to continue providing substantial returns to our investors, through active ownership of companies in the thriving Israeli market, which has remained strong during turbulent economic times.”

Markstone is a private equity firm focused on providing substantial returns for its investors by investing in growing companies based in Israel. Markstone’s management has a strong track record of investment performance, including returning in cash 39% of the capital invested since its inception. The firm’s goal has been and remains value creation through active ownership.  

SOURCE Markstone Capital