Institutional Investors

Kentucky legislators consider ban on placement agents


Chris Tobe

A new bill under consideration in the Kentucky state legislature would place a formal ban on the use of placement agents in hiring managers and would establish conflict-of-interest provisions and term limits for trustees for the Kentucky Retirement Systems.

The $14 billion state retirement fund has been in the process of allocating to hedge funds and had set up a $200 million allocation to multi-strategy hedge fund Arrowhawk that was later found to have relied on a placement agent to win the Kentucky mandate. No monies have been formally allocated and the SEC