CA: Westly Helped Firms Tap State Fund - CalPERS

LA Times ^ | 5/10/06 | Evan Halper and Dan Morain

[NormsRevenge]

SACRAMENTO — Soon after taking office in January 2003, state Controller Steve Westly began helping three venture capital firms land multimillion-dollar investments from California's giant pension system, according to public records including e-mails and officials' calendars.

Westly, now running for the Democratic gubernatorial nomination, received campaign donations from individuals associated with each of the funds, campaign finance records show.

At any given time, hundreds of fund managers are angling for CalPERS investments. Westly is one of 13 members of the California Public Employees' Retirement System board, and as the state's chief financial officer, one of the most influential.

The funds include:

• Markstone Capital Group LLC, a fledgling firm that invests in infrastructure and other "old economy" industries in Israel. CalPERS' staff expressed concern about a new fund "in a very unstable part of the world." In search of CalPERS money, Markstone Chairman Elliott Broidy invoked Westly's name in letters to other board members. CalPERS put $50 million into Markstone.

• Perseus LLC, a politically connected East Coast firm. Westly dined with its chief executive and urged CalPERS to consider investing in it. CalPERS' outside investment advisor initially balked at the firm's proposal, but eventually directed $25 million to Perseus.

• Healthpoint Ltd., which was controlled by prominent Democrats, including former New York state Comptroller H. Carl McCall. As The Times reported last month, CalPERS' staff put $5 million into the fund after its proposal was rejected by the same outside advisor.

Representatives of the three funds have donated a combined $213,000 to Westly since he ran for controller in 2002, his first statewide campaign.

[ErnBatavia]

Paging Nancy Pelosi....

[ExTexasRedhead]

IMO, Nancy Pelosi, Barbara Boxer, and Dianne Feinstein probably taught Westly all the ins and outs of being a flaming Liberal as well as fooling the public into believing their BS. The state if infested with these types.

[ExTexasRedhead]

IMO, Nancy Pelosi, Barbara Boxer, and Dianne Feinstein probably taught Westly all the ins and outs of being a flaming Liberal as well as fooling the public into believing their BS. The state is infested with these types.

[ZGuy]

The Times must be behind Angelides. When elections come around they specialize in putting out stories that trash the candidates they don't like.

[VOA]

• Healthpoint Ltd., which was controlled by prominent Democrats, including
former New York state Comptroller H. Carl McCall. As The Times reported
last month, CalPERS' staff put $5 million into the fund after its
proposal was rejected by the same outside advisor.

Isn't Healthpoint an HMO?
If so, that might explain why CalPERS has been part of the media hunt for
the scalp of United Health's McGuire.

(granted, I don't like the back-dating of stock options and
McGuire's compensation is eye-popping...but the media has gone
on a real witchhunt on this one.)

[calcowgirl]

Prior thread

CA: Funding for Westly Followed Investment (steered CalPERS to partners who raised funds for him)
Los Angeles Times ^ | April 6, 2006 | Evan Halper and Dan Morain
Posted on 04/06/2006 11:44:22 AM PDT by calcowgirl

[calcowgirl]

CalPERS invested $25 million in Markstone in September 2003, and another $25 million in January this year.

Westly refused to talk about Markstone or any of the other funds he embraced, saying only: "We are always looking at the best companies in California. When I see companies I think have exceptional track records, I am happy to forward them on to the professional staff."

Markstone had little track record. It had been founded only months before Westly brought it to CalPERS' attention in 2003.

I guess we know what school Westly comes from.